RERA
The Real Estate Regulation and Development Act, 2016 is an Act of the Parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry.
The Act establishes Real Estate Regulatory Authority (RERA) in each state for regulation of the real estate sector and also acts as an adjudicating body for speedy dispute redressal.
The bill was passed by the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016. The Act came into force on 1 May 2016 with 59 of 92 sections notified.
⏩ How homebuyer benefitted from RERA?
Before RERA, most builders took buyers for granted, swindled funds to different projects thus leading to delayed delivery across several cities. Many buyers, especially those who had booked after 2012-13, are still awaiting possession.
Now with RERA in place, both new and ongoing projects are to be brought within its fold. State RERA authorities need to be more stringent and not let a single ongoing project remain outside the purview of the Act.
⏩ Important Facts About RERA
☑ 70 percent of the amount will be kept in the bank
The important thing about the bill is that 70 percent of the amount that the builder is taking from the customers, the builders will have to be deposited separately in the bank; this money will be used for construction work only.
☑ Now you will get home at the time
Earlier builders used to put this money in another project, which delayed the previous projects and the customers could not get the house at said time, but now it will not be so with the implementation of this law.
☑ Builder will look at penalties
If the builder sells a project that is not registered then the projected penalty will be applicable to the builder.
☑ RERA Act applicable to both commercial and residential projects
This law will apply to both commercial and residential projects. Money transactions will be monitored completely.
☑ Real estate agents need registration
Real estate agents will also be registered with the Regulatory Authority; the government expects that having such agents will have the lowest scope of the fraud. These agents will only be able to sell the same project which will be registered.
☑ Maintaining transparency is necessary
After the implementation of this law, the builders had to keep every activity related to the project transparent, earlier buyers knew only the things that the builders used to tell them, but now all the necessary and minorities related to the project through the website of the concerned authority Information will continue to be received by customers.
☑ The project will not be able to do without the will of the customer
Once the project is started, the builders will not be able to make any changes to the project. Builders can make changes only when they get permission from the customers,
☑ Action will be on arbitrary builders
If the builder does any kind of arbitrariness and works by acting contrary to the rules, then this whole attitude will be treated as a violation of the RERA law and the provision of the sentence to the builder for a huge penalty or for three years in jail.
☑ The Authority will have to be given complete information
The full information of the registered project is required to be given to the Authority, under the law it has now become necessary that the date of completion of the project is given. On the basis of delays in designation or conviction in construction, the builders have to give both interest and fines.
☑ Sales will not be in the super area but on the carpet area
According to the Real Estate Law, the sale of the project will not be done on the super area but on the carpet area, if there is a delay in position or in construction, the builders have to give both interest and fine.
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