If You Are Planning To Buy a House After 1st May, Make Sure You Know These
Jun 02, 2017 Home Trading Steps
If you are still unaware of what is going to happen on 1st may, then don’t worry, we let you know everything in detail. On 1st May 2017, the most awaited Real Estate (development and Regulation) Act 2016 comes into full force across the country.
For years, the buyers have been exploited by the fraudulent practices and fake promises by the developers. These not only delay the project delivery but also cause the buyers serious financial implications. RERA will help in putting an end to these practices.
But the RERA guidelines are not totally against the developers. They are in favour of both the builder and the buyer.
Here’s everything you need to know about it:
For years, the buyers have been exploited by the fraudulent practices and fake promises by the developers. These not only delay the project delivery but also cause the buyers serious financial implications. RERA will help in putting an end to these practices.
But the RERA guidelines are not totally against the developers. They are in favour of both the builder and the buyer.
Here’s everything you need to know about it:
- The developer is responsible for any delay in the project. In fact, if the project is not completed in the specified time then they are liable to pay the buyer monthly interest so that it does not fall on the buyer.
- The buyer also is supposed to make the necessary payment as mentioned in the sale agreement, in due time. The buyer is also liable to pay for the municipal charges, registration charges, electricity bill etc.
- What if the buyer fails to make the payment? The buyer will then have to pay the interest, benchmark of which will be the prime lending rate of State bank of India and additional 2% charge for the delay in payment.
- If you are wondering if there’s any way to avoid the penalty. Well, yes there is. According to the RERA “The obligations of the ALLOTTEE under sub-section (6) and the liability towards interest under sub-section may be reduced when mutually agreed to between the promoter and such allottee,”
- According to the Act, the buyer will have to take the possession of the property within two months after the occupancy certificate is issued. If the buyer fails to do so due to an unforeseen circumstance, then they will have to mention it to the developer else it will be considered as a dishonour to the agreement.
- The Act mandates both the builder and the buyer to take part in the registration of conveyance of the deed.
- According to the Act, the buyer will have to take part in the formation of the associate of the federation. Even if the buyer is socially inactive, it will be his responsibility to take part in the same.
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