The Real Estate Developers Can’t Hoodwink Buyers- RERA
RERA targets to provide a regulatory framework. It will reduce the conflict between homebuyers and developers. The establishment of a regulatory mechanism will lead to transparency and bring standard practices across the real estate sector.
Important point you must know about the RERA:
- All projects residential or commercial, even on-going must be registered with the authority.
- Disclose all project details including approval, plan, land status etc.
- Home to be sold on Carpet area only.
- Builder and buyer to pay same rate of interest for any delays on their parts.
- The government body to be approached for redressal of grievances against any builder.
- The promoters must post all information about the project, including schedule for completion with RERA and then in effect passed on the consumers.
- The buyers can contact the developers in writing within one year of taking possession demand after sales if any deficiency in the project is noticed.
- The promoter cannot make any changes to the map that had been sold without the on paper consent of the buyer. This puts a stop to a common and unpopular practice by promoters to increase the cost of projects.
- If there is violation of orders set by the regulatory authorities, there will be detention of up to three years with or without for developers and up to one year for real estate agents and consumers.
RERA watches the interest of the allotter’s/purchasers by supporting liability, lucidity and effectiveness in the construction and execution of realty projects by developers. Now, it is obligatory for all commercial and housing projects where all land is more than 500 square meters, or eight apartments, to register with the RERA before launching project.
As India owns an unorganized and unregulated market to multiple agencies in real estate, we are in an urgent need of new round of registrations, regulations and clearances to be created over bad regulation, high prices and fake scarcity created by multiple real estate agents. Now we have RERA which will be set up within one year from date of coming into force.