Nov 2017
02

RERA for Home Buyers

2301

Wondering how the Real Estate Regulation & Development Act (RERA) impacts you as a home buyer? Here are its key features:​

 

WHAT IS RERA?

The Real Estate Regulation & Development Act (RERA) which came into effect on May 1, 2017, provides India's real estate sector its very first regulator. It will bring clarity & establish fair practices that would protect the interests of home buyers. Here are the top features of RERA that you should know about:

 

Security:

  • A minimum of 70% of investors' and buyers' money would be kept in a separate escrow account. This money can only be spent on construction of the project and the cost borne towards the land.
  • Developers can't ask more than 10% of the property's cost as an advanced payment booking amount before the registered sale agreement is signed.

 

Transparency:

  • Under RERA, builders are required to submit the originally approved plans for their ongoing projects and the alterations that they made later to the regulator.
  • Developers can't make any changes to the plan without the written consent of the buyer.

 

Fairness:

  • Under RERA, properties will be sold based on carpet area, and not on a super built-up area.
  • In the event of project delay, buyers are entitled to receive the entire money invested or they can stay invested and receive monthly interest.

 

Quality:

  • If any issue is highlighted by the buyer to the regulator within 5 years from the date of possession, then it has to be fixed within 30 days by the builder.

 

Authorisation:

  • Without registration with the regulator, a developer would not be able to invite, advertise, sell, offer or book any plot, apartment, house, building or any other investment in the project.
  • Post registration, all the advertisement soliciting investment will have to bear the unique project-wise RERA registration number.

Updated: 02 Nov 2017
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