RERA stands for Real-Estate Regulatory authority. This act makes it mandatory for all commercial and residential real estate project, where the land is over 600 Sq Yards, or eight apartments, to register with the Real Estate Regulatory Authority (RERA) for launching a project. RERA establishes a state authority which will govern both residential and commercial real estate transactions. The objective of RERA project is to protect the buyers especially through the delaying in the project construction and builders’ commitments.
Here is how RERA Helps Buyers
Buyers have authority to get all the project related details such as land cost, project agreements, legal documents, sanctioned plans, open spaces, construction cost, covered parking area, phase wise plans, project completion time, etc. RERA Act Law makes builders mandatory to register the project with their respective state under RERA Act within Three months of the Project implementation. RERA Law helps buyers to have Right Information About the Property. RERA Act makes buyers mandatory to receive the RERA certificate documents to avail any housing loan. If the project has not been registered under RERA Act then builder cannot advertise, market, book, sell or offer for sale, or invite any persons to purchase in any plots, apartments or buildings.
According to this Act, a Builder must pay 10% of interest on the property value for delaying the construction. If builder fails to pay the stipulated amount, promoters are liable for imprisonment. This provision acts as a backbone of RERA due to the nature of punishment for builders.A buyer can also file a case against the builder and send the legal notice to the builder for not completing the project on time.Buyers also claim compensation or interest @ 10% of the property value in case of false commitment regarding project information. RERA can protect buyers from misleading claims by ensuring the promises made are documented, especially those who are not part of Marketing Partners/ Advertisements.
RERA can infuse much needed confidence in the sector & thus promote real-estate industry in general with heavy penalties imposed on the Developer for delay in completion of project or making false commitment to the buyer, inherent problems in the real-estate will be sorted out.
Apart from all the provisions mentioned above, few other provisions like listing of promoter’s profile, their past projects, track record, litigation, approved real-estate consultants make the system very much transparent to ensure friendly way to buy a property by the end user.
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