Some Lesser Known Facts of RERA
With so many things and schemes going on in the country right now, it is getting difficult for people to cop – up with all of them. While people were busy in dealing with the banned notes and launch of the new notes, another set of schemes were introduced by our esteemed Prime Minister Narendra Modi.
In last few years, the country has witnessed various political and economical upheavals and one of them is RERA: Real Estate Regulatory Agency.
Real estate is the second biggest employer after agriculture – and the housing sector alone contributes 5 – 6% to India’s total GDP. But it is supposed to be the most fraudulent sector of the Indian economy – largely because of its unorganized and unregulated condition, with no proper guidelines.
The recently passed Real Estate Bill provides the much – needed and most awaited transparency and accountability to the realty sector.
RERA seeks to address issues like delays, price, quality of construction, title and other changes.
Postponements in projects are the biggest issue faced by the buyers. The reasons are numerous and the impact is huge. From the last many years, may projects have witnessed delays of up to 7 years and there is nothing that a buyer or a customer can do in order to get his apartment or any project done. Projects launched after the turn of this decade have faced delays as well. Some have run into obstructions even before a brick was laid. The reasons include diversion of funds to the other projects, changes in regulations by authorities, the environment ministry, national green tribunal etc and other bodies like those involved in infrastructure development and governing transport. And in between all of this, the one who suffers is the buyer, who has already submitted all the required installments and now is hanging in the middle of nowhere.
With so many discussions going on from past few years, finally from 1st May 2017 RERA is all set to make some effective changes in the real estate sector of our country.
In this Blog I am going to mention few important and must known facts of RERA that will build – up your trust once again in our real estate sector.
1. All Developers Must Register with RERA – by Law
The Act makes it obligatory for every residential and commercial developer to:
- Register their project with RERA
- Upload all project details to RERA’s website (for all to view)
The Act applies to:
- Residential Projects of at least 500 – plus square meters or 8 apartments – as well as under – construction residential projects.
- Commercial Projects including shops, offices and commercial buildings
2. Ratification on a State – Level Basis.
Individual states will have to sanction their own rules, and will have their own regulatory establishments and authorities. Though, up to now, only 13 states have notified their relevant laws to the centre.
3. A Strict Check Will be Kept on the Developers.
The developers will have to register all the information regarding their ongoing projects with their local state regulatory authorities in the next three months. Developers must also provide the ongoing status of the building project on their respective websites regularly. Developer cannot arbitrarily change the project’s layout or building plan after selling it to the customer, unless two – thirds of the buyers of the project agree to the changes.
4. Delivery Time to Be Assured By the Developer.
5. Mandatory After – Sales Service
If you notice any structural deficiency within one year of taking possession of your flat, you are legally entitled to contact your developer (in writing) and demand after – sales service.
If your developer reneges on their after – sales commitment, you can complain to your state RERA for redress – and expect a speedy resolution within 60 days.
6. Developers Must State Accurate Carpet Area
Developers will now have to quote their price based on carpet area exactly as defined under the Act, instead of an “unclear” super built – up area (like many of them did earlier). Not like super built – up area, carpet area is the area within the walls of a unit or flat, and it:
- Includes the area covered by internal partition walls
- Does not include external walls, areas under service shafts, or common areas like balconies, verandas, terraces, etc.
Now you will know exactly how much area you’ll be paying for – with no room for doubt.
7. Real Estate Conflicts
In case of conflicts, home buyers will not have to rush after the civil courts, they can simply their complaints in connection to their property projects to special real estate courts that will be set up in each state. This is aimed at pacing up the current redressal process.
Thus in short, it is a good news for all the keen buyers and investors because now you get an extraordinary opportunity to buy the home of your dream without getting indulged in any fraudulent practices. Things will get transparent and even clearer than before, buyers can know the exact status of their project and rest of the things will be handled by none other than RERA.
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