Happy Home Buying, RERA is Finally Here!
Happy news for home buyers or rather the happiest news for home buyers as RERA is finally here for you. RERA, the Real Estate (Regulation and Development) Act passed by both houses of the Parliament in 2016 is effective from 1stMay, 2017. It is truly a boon for the homebuyers. From transparency to accountability, developers will have to play crystal clear with you at every step. Yes, homes under construction are cheaper and you ought to get the benefit. Thanks to RERA that project delays and paying for super built-up area will be history. And of course, your developer has to be accountable for what is being constructed for you. Along with developer, RERA also brings home buyers on track. For every delayed payment, you will also be liable. Here is all you will want to know about this super move for the home buyers.
What is RERA?
In simple terms, RERA is for the buyer and developer as it brings transparency into play for both. With the implementation of this super regulation, clarity in property buying and fair means will become the order of the day. Everything will be black and white. As per this act, every state and union territory will have its own regulator and rules for governing the functioning of this regulator. ?Each state government has to formulate the rules under RERA within a span of six months. As for the national capital, the rules have to be formulated by the Ministry of Urban Development, and for Union Territories, this task will be carried out by Ministry of Housing and Urban Poverty Alleviation.
From project delays to construction quality, soaring prices to title, buying a home had virtually become a headache for the buyer. When a home is under construction, you can get it cheap is a universal truth. However, project delays and that too for years had become one of the biggest challenges. The funds generated were redirected in some other project, there would be delays in clearance from environment ministry and land acquisition, the price of all this had to be borne by the consumer. Likewise, there would be defaults on the part of the home buyer. Some would not process the payments on time making it difficult for the buyer. For all this and more, the RERA is there, which will do the check and balance.
Salient Features of RERA
- To ensure your money is being used for the project for which you have given it to the developer, a separate ESCROW account will be there for each project. For instance, if a developer is constructing five different projects, there will be five different ESCROW accounts and 70% of investor and buyer money will be deposited and used for the construction of that particular project, only. So, 70% of your money can be used for construction of the project or land cost of it.
- Once a buyer invests in a property, it will be the duty of the developer to keep sharing project updates from time to time.
- Builders will have to provide details including original approved plan, changes made later, money collected from allottees, utilization of funds, timeline of construction, completion and delivery, which will have to be certified by project engineer, CA and architect.
- Each state regulator will have to ensure that all real estate projects and agents operating in the state are registered under RERA. Further, these details have to be put on website for access to general public.
- Taking care of flat quality, it brings with it the clause of 5-year warranty by builder. The builder cannot give you poor quality house as if any issue will be highlighted by you, the builder will have to get it fixed within 30 days.
- A builder can advertise, sell or book a flat only after it has been registered with the regulatory authority. Post registration, every advertisement for investment and selling will have to have the registration number on it. This will be a unique RERA registration number.
- If the builder fails to deliver the project within the agreed timeline, you get your money including pre agreed rate of interest mentioned in the contract. This contract will be based on a model contract made by RERA.
- But if the buyer, does not want the money, then the builder will have to pay monthly interest until the delivery of the project.
- Ensuring complete security of buyer, RERA makes it mandatory that not more than 10% of property cost can be taken as advance booking amount before signing the registered sale agreement.
- Along with builders, buyers will also have to pay penal interest of SBI?s marginal cost of lending rate and 2% in case of delays.
- It will improve the relationship and trust between developers and homebuyers. From house payments to possession deadline and other transactions there will be complete transparency and understanding between the two.
So, buying a home will be an easy, simple and transparent process from hereon. You cannot be cheated by the developer nor will the developer face payment hassles at any given point of time. Home buying will be a happy and fun process. Buy your home now from http://www.providenthousing.com/, details regarding our projects are already there on our website, even before RERA, as we believe in quality homes and crystal clear deals, today and always.