Know your provisions under RERA | Fusion - WeRIndia

Know your provisions under RERA

Know your provisions under RERA

Indian government issued new rules in the Real Estate (Regulation and Development) Act (RERA) to improve transparency and accountability in real estate sector.

The central RERA came into force from May 1, 2017, but the states were given time to notify their RERA rules.

While the deadline for notifying the new rules for all states is 31 July, 2017, more than half of the states have not yet notified their specific rules.

Many buyers are not fully aware of the important points in the new Act. Here is list of some important points about RERA. Read the article and know your provisions under RERA.

Every real estate project, whether it is a new project or an on-going project or something yet to get the occupation certificate as on the specific date will come under the purview of RERA.

Every real estate project should be registered with the Real Estate Regulation Authority.

Developers should have to deposit 70 percent of the money collected in a separate account and should use this money for the completion of on-going projects.

If the project is delayed, then developers should have to pay compensation to the allottees with an interest rate of nearly 11 to 12 percent if the delay if 45 days or more.

The builders cannot make changes to the project without the approval of the customer after the commencement of the project.

If rules are violated by developers, they have to pay 10 percent of the project cost; if the allottees or agents violate the rules, they have to pay 10 percent of the property cost. They may also a get a compounding punishment with imprisonment.

All complaints should be disposed of within 60 days under the new rules.

Developers will have to declare their flat size based on carpet area only, and not on any other basis.

The information of promoters like their projects, profile and track record would be published on the website of the Real Estate Regulatory Authorities to assist buyers.

Image Credit: Brian Turner / CC BY 2.0

Image Reference:

Leave a Reply

Your email address will not be published.