Blogs

Declarations made by the RERA bill

BY Sangeeta 30TH MAY 2017

RERA is Real Estate Regulatory Agency brought by the Parliament, designed to protect the interest of home-buyers and bring a boost to the real estate investments. Since the union budget 2017, a lot of changes have come to light in the working of the real estate sector. Some of the main points which are brought by RERA are:

  • Every developer has to post all of the information such as project plan, government approvals, layouts, sub-contractors and schedule of completion with the state RERA and then pass the same to the customers.
  • Selling of homes will only be based on carpet area unlike previously, which was based on super built-up area.
  • If there are any delays in delivering of the project by the developers, they are bound to pay the same rate of interest like the home buyers which is fixed to 10% for both buyers and sellers. This is designed to remove any differences or biased accounting.
  • For any deficiencies after taking the possession of your home, the buyers can contact the developers in writing for after sales service within a year.
  • Every developer needs to place 70% of the project funds in a dedicated bank account, to ensure that the project proceeds without any hassles and delays and the possession is given in stipulated time. Every developer needs to place 70% of the project funds in a dedicated bank account, to ensure that the project proceeds without any hassles and delays and the possession is given in stipulated time.
  • There will also be an authority on the real estate regulators to govern both residential and commercial real estate transactions.
  • The plan which has been once sold cannot be changed by the developer without a written consent of the buyer, which might bring up an unnecessary increase in the overall costing of the project.
  • Every project, measuring more than 500 square metres or more than eight apartments needs to be registered under RERA.

Though these are some of the main amendments made under RERA which might be subject to changes with respect to time or different authorities and regulations, it is purely designed to benefit the buyers of real estate homes along with regulating and increasing the scope for the developers of real estate market.