A real estate regulator in each State will help usher in enhanced accountability by all means while making buyers and other stakeholders feel secure. Compulsory disclosure of all details of projects including information about the status of the land, clearances and promoter is another good move that makes it possible to protect rights of consumers. RERA has also made several fly-by-night or irresponsible developers exit the market while responsible, legally compliant firms with good track records have benefited from reviving customer sentiments. There is now clear differentiation between those who perform well as developers and those who resort to unethical means.
Here’s looking at the top 10 key features of RERA that you must know more about.
All real estate promoters/developers/firms have to mandatorily register their upcoming and ongoing real estate projects under RERA.
Carpet area is only what the buyer will have to pay for at a project.
Promoters/developers will have to compulsorily reveal all details including the project layout, plan, government clearances and approvals, sanctioned FSI or floor space index, number of floors in every building, number of wings and buildings and so on.
Promoters/developers will have to mandatorily transfer 70% of the money that they get from home buyers for a specific project into an escrow account. These funds will only be used for covering costs of land and construction.
RERA covers projects which were ongoing on the date of final implementation which is the 1st of May, 2017 and projects for which the completion certificate was not issued at the time.
Prior to advertising/marketing their projects, promoters/developers have to mandatorily register their projects under RERA and all details of the same can be accessed by homebuyers.
RERA has recommended imprisonment up to 3 years as punishment or a fine up to 10% of the estimated real estate project cost in case a developer/promoter does not adhere to the Act.
In case of any false information given by a developer/promoter or overturning of provisions of project registration, the promoter/developer will have to pay a penalty of up to 5% of the cost estimated for the project.
Project details will have to be updated on a quarterly basis by developers/promoters on the RERA site.
Structural defects or any other obligations of the promoter based on the sale agreement, if it is brought to the attention of the promoter/developer within a period of 5 years from possession, has to be fixed absolutely free of cost.