On 1st May’2017, the Government of India implemented RERA Act for protecting the interest of homebuyers and for bringing transparency into the real estate sector of India. RERA stands for Real Estate Regulations Act and aims at addressing the homebuyers’ queries against the unfair practices adopted by the real estate developers.
After implementation of the RERA Act, it has become mandatory to register every commercial and residential project under RERA. When a person invests in RERA registered project, his right as a buyer are protected. It is because RERA mandates:
• Homebuyers only need to pay for the carpet area of the project.
• For making any changes in the site plan of the project, it is important to obtain the written consent from the buyers.
• Developers need to deliver the project within the specified time limit and if they fail to do so, they are liable to pay the interest to the buyer.
• In case, there is any mismatch in the commitments made and the actual project, buyers are entitled to get the full refund of the amount paid to the developer or otherwise along with claim compensation and interest.
• It is developer’s responsibility to fix any structural defect in the living unit if it arises within the 5 years of the possession of the project.
• Promoters or developers of the project are under legal obligation to disclose complete details of the project including layout, project plan, government approvals with respect to floor space index (FSI), number of floors in each building, number of buildings, flats, etc.
• Developers need to park 70% of the buyers’ money into an escrow account. In addition to this, these funds need to be used only for the construction of that particular project.
• It is necessary to register a project under RERA Act before marketing or advertising it.
• If any developer furnishes false information to customers, he needs to pay penalty up to 5% of the project estimated cost.
• Any non-compliance with the Act will attract imprisonment which may extend up to 3 years or fine up to 10% of the estimated cost of the project or both.
• Buyers are free to file a written compliant to the builder for the property maintenance up to 1 year from the possession in accordance with the after-sales service.
• At the RERA website, it is necessary to update the project details.
All those commercial and residential projects which are ongoing on 1st May’2017, the date of commencement of RERA act, and have not received the Completion Certificate (CC) are bound to follow the aforementioned rules.
So, if you are interested in investing money in any commercial and residential property of Delhi-NCR, do not forget to check its detail on the RERA website. For knowing about complete details about RERA registered property in Noida, Greater Noida and Gurgaon, call the professionals of Investoxpert.