RERA To Protect The Rights Of Home Buyers
The rules under the RERA are set to protect the rights of buyers in both the residential and commercial segments.
From this day forth, the Real Estate Regulations Act will be in force to safeguard the rights of buyers and to boost the investors’ confidence across the country. It will also aim at ensuring timely execution of the projects by the developers. The new RERA rule will be applicable both for the commercial and residential sectors. On top of this, it has become mandatory for all the real estate agents to register with RERA for the authority to settle disputes if any, in future. As of now, there are only 7 states that have actually implemented the rules of RERA.
1. RERA is a model law which has been introduced by the centre. The state has the complete power to formulate and pass the law since, land is a state subject.
2. Till last weekend, only six states had notified the rules - Uttar Pradesh, Gujarat, Odisha, Andhra Pradesh, Maharashtra, Madhya Pradesh and Bihar. The Housing Ministry had last year notified the rules for the five Union Territories and for the National Capital Region of Delhi.
3. RERA is a law under which the consumer rights will be protected if there are violations noticed in the dealings between the developer and the buyer. The Union housing minister Venkaiah Naidu said rights and obligations of buyers, developers and real estate agents are unambiguously defined in the law and any breach committed by one party to the other can be dealt with seriously.
4. It has been noted that some states have actually lessened the concentration of the key provisions of RERA and that will be corrected very soon as promised by the state authorities, "said Venkiah Naidu".
5. Under RERA, the real estate developers and the agents have to register with the regulatory authority by the end of July 17. There is also a condition that seventy percent of the funds collected from the buyers ought to be deposited in the bank and used only for the purpose of construction failing which there will be severe consequences. This is to ensure timely delivery of the project to the buyers. Also, before launch, the project should be registered with RERA.
6. If there are any structural changes to be made in a project, the promoters must make sure they have the support of two-thirds of the buyers. If they failed to do so, there will be huge penalties with imprisonment levied on the promoters. Also, the developers have to update RERA website with the project details and time to time furnish with details of improvement taking place, with regards to the construction.
7. RERA has come up with a solution to the structural defects developing after construction. It clearly states that if any such defects are happening with 5 years of completing a project, the defect must be rectified by the promoter. Also, the promoter has to pay interest up to 2% for the delay caused in completing the project.
8. There is a prison sentence for up to 3 years for reckless developers A promoter can only sell the carpet area which will help the home buyers clearly understand what they are buying and what they are paying for.
9. In the past few years, the situation has been very bad economically. The laxity in the real estate growth and developers holding high debts have actually stalled any big improvement in the industry. The lending rates were high and banks were not able to cope with the situation. With RERA in place, these situations would improve in future.
10. The government is very upbeat that RERA will definitely bring a lot of transparency and help buyers understand things better than before.
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