WHAT IS RERA
The real estate Regulation & Development Act (RERA) which came into effect onMay1, 2017, provides India’s real estate sector its very first regulator. It will bring clarity & Establish fair practise that would protect the interests of home buyers. Here are the Top Features of RERA that you should know about:
SECURITY
- A minimum of 70% of Investors and buyer’s money would be kept in a separate escrow account. This money can only be spent on constructions of the projects and the cost borne towards the land.
- Developers can’t ask more that 10% of the property’s cost as an advanced payment booking amount before the registered sale agreement is signed.
TRANSPARENCY
- Under RERA, Builders are required to submit the original approved plans for their ongoing projects and the alteration that they made later to the regulator.
- Developers can’t make any changes to the plan without written consent to buyers.
FAIRNESS
- Under RERA properties will be sold based on carpet area and not on super built-up area.
- In the event of project delay, buyers are entitled to receive the entire money invested or they can stay invested and receive monthly interest.
QUALITY
- If any issue is highlighted by the buyer to the regulator within 5 years from the date of possession. Then it has to be fixed within 30 days by the builder.
AUTHORIZATION
- Without registration with the regulator, a developer would not be able to invite, advertise sell, offer or book any plot, apartment, house, building or any other investment in the project.
- Post registration. All the advertisement soliciting investment will have to bear the unique project-wise RERA registration number.
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