RERA is Real Estate Regulatory Authority and came into being as per the Real Estate Act 2016, which targets to protect home purchasers and boost real estate investments. The bill was passed on 10 March 2016 by the Rajya Sabha. It was effective on and from 1 May 2016. Out of 92, only 52 sections were notified. All the other provisions were efficacious on and from 1 May 2017.
Some Points Under RERA
- Under the RERA, a minimum of 70% of the buyers' and investors' money will be kept in a separate account. It will be allotted to the builders for construction and land-related costs.
- Builders have to submit the documents for all projects they undertake. They are supposed to make plan changes with the buyer's consent.
- RERA has now instructed builders to sell properties based on carpet area, not SBA. If the project has been delayed, customers are entitled to get back the money invested, or they can choose to receive monthly investment on their money.
- The builder must solve any customer issue within five years of the property purchase. This issue must be solved within 30 days of the complaint.
- Without registering, a regulator cannot sell, construct, invest, advertise, or book land. After registration, all advertisements should have a project-wise registration number furnished by RERA.
- Establish a RERA in every Indian state to monitor, adjudicate, and arbitrate any problems concerning residential projects in the concerned state.
- Establishment of a mechanism for the settlement of conflicts. This will be done through an appellate tribunal and adjudicating officers.
- All realty properties must be registered with RERA. The administration can only accept the registration of a particular project if guidelines have been adhered to.
- If there is any default from the buyer or promoter side, both are liable to pay an equal interest rate.
RERA offers several benefits for the buyer, the promoter, and the builder. These include:
- Before RERA, how a developer calculated the cost of a project needed to be defined. However, with RERA, a standard formula is now used to calculate it.
- Most promoters and builders tend to have many projects being developed simultaneously. Earlier, developers were allowed to move funds from one property to another. This is impossible with RERA since 70% of the amount raised needs to be deposited in another bank account.
- According to the rules, a developer cannot take more than 10% of the project's cost from the customer as advance fees.
- Within five years of property possession, if there are any structural problems or problems in quality, the developer has to solve these damages within 30 days at no cost to the customer.
- If there is a difference in terms of what was promised by the developer and what has been provided, the buyer can get a full refund. The builder may also have to give interest on the amount.
- If the customer finds a defect in the property's title at the time of property possession, the buyer can ask for compensation from the promotor.
- The customer has the right to know all the details about the project.
Godrej Splendour is a new project in Whitefield, Bangalore, produced by Godrej Properties. RERA approval is still awaiting the project launch.
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