RERA Brings Relief to both Developer and the Buyer
Apr 07, 2017 Real Estate News
Since coming into light this year, RERA has brought relief to both the buyers and the developers on various fronts. The buyers and the developers can terminate the deal in case either of them turns out to be a defaulter. RERA also allows both the parties to amend the sales agreement with the written consent from both.
According to the government release ‘Agreement for sale rules seeks to eliminate the scope of such agreements in favour of either of the parties’.
The major relief for the buyers is that the price of the property cannot be increased or escalated until the development charges increases.
If the buyer is the defaulter and is not able to pay the amount on the agreed upon time, then the developer can go ahead and cancel the allotment of the property to the buyer. If the developer is the defaulter by not handing over the property on the agreed time or completes the project on time, then the buyer can go ahead and terminate the agreement. The developer is then entitled to repay the amount to the buyer within 45 days.
If in case the buyer is not interested in pulling out from the deal if the project is delayed, then the developer is supposed to pay the buyer the interest till the project is completed. However, this is not applicable is the delay is caused by a natural disaster like an earthquake, floods, hurricane or any other cause which is beyond the developer’s control.
1, the ministry of housing and urban poverty alleviation (HUPA) notified the final rules of Real Estate Regulation and Development Act (RERA) which will be applicable to the five union territories without the legislature, Andaman and Nicobar Island, Chandigarh, Dadar and Nagar Haveli, Daman and Diu and Lakshadweep.
While the ministry of urban development will come out with the similar rule for Delhi, other states and union territories with legislature will come out with their own rules or will follow the above mentioned as per HUPA.
Developers will now have to pay the refund or compensation to the allottees with an interest rate of 2 percent with 45 days of it becoming due. They are also required to pay 70 percent of the amount collected to the RERA in the separate bank account within three months of allotment, for ensuring the timely completion of the projects.
The buyers are entitled to the rectification of any structural defect by the builder in the five years of possession of the property, while the developer is entitled to the interest in case of delay in the payment by the buyer.
RERA is supposed to set up and come into force on 1st may 2017.
According to the government release ‘Agreement for sale rules seeks to eliminate the scope of such agreements in favour of either of the parties’.
The major relief for the buyers is that the price of the property cannot be increased or escalated until the development charges increases.
If the buyer is the defaulter and is not able to pay the amount on the agreed upon time, then the developer can go ahead and cancel the allotment of the property to the buyer. If the developer is the defaulter by not handing over the property on the agreed time or completes the project on time, then the buyer can go ahead and terminate the agreement. The developer is then entitled to repay the amount to the buyer within 45 days.
If in case the buyer is not interested in pulling out from the deal if the project is delayed, then the developer is supposed to pay the buyer the interest till the project is completed. However, this is not applicable is the delay is caused by a natural disaster like an earthquake, floods, hurricane or any other cause which is beyond the developer’s control.
1, the ministry of housing and urban poverty alleviation (HUPA) notified the final rules of Real Estate Regulation and Development Act (RERA) which will be applicable to the five union territories without the legislature, Andaman and Nicobar Island, Chandigarh, Dadar and Nagar Haveli, Daman and Diu and Lakshadweep.
While the ministry of urban development will come out with the similar rule for Delhi, other states and union territories with legislature will come out with their own rules or will follow the above mentioned as per HUPA.
Developers will now have to pay the refund or compensation to the allottees with an interest rate of 2 percent with 45 days of it becoming due. They are also required to pay 70 percent of the amount collected to the RERA in the separate bank account within three months of allotment, for ensuring the timely completion of the projects.
The buyers are entitled to the rectification of any structural defect by the builder in the five years of possession of the property, while the developer is entitled to the interest in case of delay in the payment by the buyer.
RERA is supposed to set up and come into force on 1st may 2017.
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