RERA for Developers!!!
The rules and regulations of RERA had been implemented in order to bring transparency in the real estate market. Under these regulations, real estate developers have to fulfill some requirements throughout the whole process. The biggest concern for all the buyers is the delay of the real estate projects. Even across various location, the delay is even up to six years or more. But because of non-existent rules and regulations, it always seemed like a one-sided battle. Now with the help of RERA regulations, the buyers have the right to file a complaint against the builder. Have a look on the compliances that a developer has to complete.
Registration: A developer working on more than 500Sq. Mt. Project has to register the project under RERA. Builders have to register both the new and ongoing project under RERA.
On-going project: The projects which had not been received the completion certificate up to 1st May 2017, need to register their projects under RERA authorities.
New project: Each new project should be registered under RERA before any kind of the booking, promotion or advertisement of the project begins.
The builder can’t ask for more than 10% of the cost of the construction in advance. Builders have to submit the original documents as prescribed by RERA.
Periodical update: The builder needs to inform or update regarding the project to RERA authority quarterly. And the financial audits or reports should be submitted at least once in a year.
A separate bank account: Every builder should have a separate bank account holding 70% of the cost of the project. And this amount can be withdrawn by the promoter in the prescribed manner.
What if the RERA regulations have not been followed?
RERA has made regulations not just to make the promoter accountable and the whole process transparent but also make them pay compensation in case of the default. In case of the delays or defaults in the property possession as per the agreement of the sale then a buyer can claim the refund of the amount along with the interest. In another case, if the builder’s registration is canceled; even then the buyer can claim to get a refund.
If the buyer doesn’t want any refund and still, is interested in the project then the builder needs to pay interest every month till the possession of the property.
Many states had fixed the interest rate as state bank of India marginal cost plus an additional two percent. However, the interest rate can vary according to the state and union territories. This is how RERA penalizes the builders if their projects get delayed beyond the prescribed period of time and cause any inconvenience to buyers.
