Important definitions in RERA

Important definitions in RERA
  • General
  • Sunday 3rd May 2020
  • Author: Riya Kapoor

Highlights

  • RERA was enacted in 2017 to regulate the Indian Real Estate Sector.

  • The main objective of RERA is to safeguard the interest of homebuyers as well as bring in standardization in the real estate sector. So we are going to look at the 5 important definitions in RERA which every real estate stakeholder must know.

RERA was enacted in 2017 to regulate the Indian Real Estate Sector. The main objective of RERA is to safeguard the interest of homebuyers as well as bring in standardization in the real estate sector. So we are going to look at the 5 important definitions in RERA which every real estate stakeholder must know.

Carpet area-“carpet area is defined as 'the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment'”.

Commencement certificate- As per Section 2(m) of the RERA Act, 2016, "commencement certificate" means the commencement certificate or the construction permit, issued by the competent authority to allow or permit the promoter to begin the development works on immovable property, as per the sanctioned plan.

Completion certificate- "completion certificate" means the completion certificate, or such other certificate, by whatever name called, issued by the competent authority certifying that the real estate project has been developed according to the sanctioned plan, layout plan and specifications, as approved by the competent authority under the local laws;

Occupancy certificate-"occupancy certificate" means the occupancy certificate, or such other certificate by whatever name called, issued by the competent authority permitting occupation of any building, as provided under local laws, which has provision for civic infrastructures such as water, sanitation, and electricity;

"Interest" means the rates of interest payable by the promoter or the allottee, as the case may be. Explanation.—For the purpose of this clause— (i) the rate of interest chargeable from the allottee by the promoter, in case of default, shall be equal to the rate of interest which the promoter shall be liable to pay the allottee, in case of default; (ii) the interest payable by the promoter to the allottee shall be from the date the promoter received the amount or any part thereof till the date the amount or part thereof and interest thereon is refunded, and the interest payable by the allottee to the promoter shall be from the date the allottee defaults in payment to the promoter till the date it is paid;

So these are the 5 important definitions in RERA.

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