RERA : What builders abide by!
You as the consumer have all rights to know about your law changes. First introduced by the Indian National Congress Government in 2013, RERA was proposed the parliament. However, after 3 years, the parliament of India passed the Real Estate (Regulation and Development) Act in 2016.
RERA watches upon:
RERA came into action for protecting the consumers from any corrupt developers and brokers. Thus, you can say that the actual motive of RERA Act is to bring transparency into the property buying section.
Ensuring that the common people get their properties in time without any misuse of the property fund, RERA helps the consumers in having a control over their own land use.
Another fact what RERA states is as it is a model law, it remains in the hands of each state to amend rules and regulations according to their state conditions. But of course their decision should remain under the guidelines of this Act.
Rules of registration to follow:
Let’s simplify its rules for you –
a. All commercial & residential real estates as well, having land over 500 square meters or 8 apartments has to register under the RERA Act.
b. Projects that were already in action before the Act was passed, must register within 3 months time.
c. The builders need to get the application approved or in some cases they might be rejected, but all this should happen within 30 days of applying.
d. If anyone fails to register, there is a penalty of up to 10% of the project cost or 3 years of imprisonment.
Benefits of consumers:
RERA came to power to provide solutions to the consumer’s never ending tension when they think of buying homes. Therefore RERA gives them:
· The adequate legal provision needed to authenticate a plot or building
· An awareness about the buyer’s rights
· Full information about the builders
· Quality of building
· A proper duration of buying and taking possession of the property
Thus RERA not only helps out consumers but also gives proper value to authentic property developers.
Did You know?
There are 13 states that have adapted RERA. However, Indian Government aims for more participation.