How RERA will satisfy end users?
- Thursday 6th July 2017
- Author: Riya Kapoor
The customers can access all the documents of Promoters as law makes it mandatory to submit all the documents while applying for RERA Registration
70% amount needs to be deposited in a separate bank account to avoid diversion of funds to another project.This will go a long way in protecting the interest of the property buyer.
Every state will have its own regulatory, where an aggrieved person can file a complaint against the defaulter.
RERA act will reshape home buying experience for buyers. Real Estate Regulatory Act was implemented on 01 May 2017 across the country. RERA aims to bring transparency and trust in Indian Realty Sector. The act will help promote accountability, transparency, and efficiency in a sector that was considered cloudy due to unethical practice committed by some black sheeps in the market.
Before RERA there was no authority mechanism where buyers could get all the necessary details about the builder in one place. Now, RERA will safeguard the end users from unscrupulous activities by setting state-level RERA regulatory.
Let's have a look at some of the provisions of RERA which will benefit the end users:
- RERA has clearly defined Carpet area in the act. Customer will now have to pay for carpet area.
- If the promoter wants to alter any layout, written approval from 2/3 allottees is required
- The customers can access all the documents of Promoters as law makes it mandatory to submit all the documents while applying for RERA Registration
- As per the act, promoters are required to repair any structural defects within 30 days up to 5 years from handing over of project
- 70% amount needs to be deposited in a separate bank account to avoid diversion of funds to another project.This will go a long way in protecting the interest of the property buyer.
- The Promoter has to form and register the Society within three months from the date 51% of the lots booked, in such a building or a wing, even if the project is under construction.
- The promoter will specify project completion time in RERA application. Thus, the promoter will be liable to follow the timeline as given.
- Section 13(1) of the Act forbid the promoter from taking more than 10% of the cost of the apartment without entering into a written agreement for sale, duly registered.
- Every state will have its own regulatory, where an aggrieved person can file a complaint against the defaulter.
- At the time of registration, the Promoters shall provide the details of past 5 years projects done and even what was the possession date promised and when was possession given.
These provisions will empower home buyers to make an informed decision before buying a unit from a developer or through a broker. RERA will surely have a far-reaching impact on the Indian Realty and will transform its working mechanism altogether.
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