Before 2017, the real estate industry was mostly unregulated, and normalized strategic approaches were followed once in a while. While most homebuyers felt that the designers had restricted lawful risks, the perpetual portion delays by homebuyers made misfortunes to the developers. To solve these issues by manufacturers and homebuyers, the Real Estate (Regulation and Development) or RERA Act was presented by the public authority in 2016.
Due to the regular confusion in the Real Estate Sector, the RERA Act was introduced on 1 May 2016 which acts as a stage savvy for real estate activities and it starts with endorsements for the start of an undertaking and RERA Registration with the overseeing authority. An enormous land or settlement can’t be created in a solitary go and possibly the designers need to change or adjust plans of the succeeding ventures. A designer of real estate can make changes and alterations in the future to the various stages not enrolled at this point so that time-wise possession can be conveyed.
Benefits of Rera Act for Home Buyers
The Rera Act has brought an aggressively positive change in the Real Estate Sector. The Rera Act has created a systemic way of identifying and addressing homebuyer’s and builders’ issues with transparency.
The RERA Act provides the buyer’s peer-to-peer information on the project they are interested in investing in which includes the plan layout, execution plan, stage-wise completion status.
The RERA Act has made it mandatory for Real Estate Industries to obtain clearances before starting any project either commercial or residential which ranges from NOC to completion certificate to occupancy certificate.
Under the Rera Act, it is mandatory to register for every Real Estate agent to get an Authorized Registration Number by the Authority. So, No one can sell or purchase any unregistered projects under the Rera Act.
Rera Guarantees a balanced Agreement between Developer and Homebuyer that also acts as transparency between Buyer and seller under government rules and regulations.
According to the Rera Act, the Developer will be responsible for any structural damage caused to the property up to 5 Years from the date of handing over the property.He/She has to pay for all the repairs or rectify all the defects that happened to the property within 30 days.
The Rera Act ensures on-time delivery of projects, In case of any default delivery delay the Builder will be liable to pay 2% to 5% interest on SBI lending rate or it will lead to imprisonment up to 3 years to Builder.
Responsibilities of Real Estate Agent or Developer under RERA Act?
With the Implementation of the Rera Act, developers have to disclose the details of ongoing and upcoming projects quarterly which includes registration granted by the Authority,types of Properties,status of Every project,Project approval,etc.
The Rera Act mandates that developers must not accept payment of more than 10% as an advance payment.If they are doing so both parties must sign a written agreement for sale and registration.
The Developer of the project will be responsible for providing the stage-wise schedule completion of civic amenities,sanctioned and plan layouts at the time of booking before issuing allotment letters.
The Developer will be responsible for taking the complete Occupancy certificate as per the local laws and making it available to the Homebuyer.
Under the Rera Act, the Developer will be responsible for maintaining and providing essential amenities at reasonable rate until it is overtaken by the Allottees.
The Developer must hand over all the documents and common areas to the Association of Buyer within 30 days after getting the Occupancy Certificate.
Carpet Area according to Rera Act
As per RERA, carpet area is defined as ‘the net usable floor area of an apartment, excluding the space covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the space covered by the interior partition walls of the apartment’. Rahul Shah, CEO of Sumer Group, points out that “As per the RERA guidelines, a builder must disclose clear and accurate carpet area in order that a customer knows what he’s paying for. However, the act doesn’t make it mandatory for the builders to sell a flat on the idea of a carpet area.”