Why Is It Wise To Wait Till May 1st To Buy The House?
Jun 02, 2017 Home Trading Steps
Thinking of buying a home? It is better to wait till May 1, as the most awaited real estate regulation RERA (Real Estate Regulation and Development Act) comes into force. RERA is expected to change the face of Indian real estate and bring more transparency and accountability to the sector. Not only this, RERA will be of huge benefit to the buyers.
There are few provisions that are made by the RERA and it will support the buyers and stop the developers from exploiting the buyer’s interest.
1. According to the RERA guidelines, it is mandatory for the state government to establish a separate state real estate regulatory authority whose sole purpose will be to make sure the developers are keeping their promises. The buyers can approach the authority and address any grievance.
2. All the under construction properties also fall under the RERA regulations. Registration is compulsory for all the projects over 500 sq. mtr. or more than eight apartments. Failure to do so will be changed with a penalty which can be 10 percent of the total cost of the project. Repeated offenders can also face jail time.
3. The developers will have to put the 70 percent of the money deposited by the builder to another account called the Escrow Account. Builders will not be able to access and take out the money from the mentioned account to fuel and fund another project. This will ensure that the projects are completed on time.
4. Pre launch sale attracts more customers, but not anymore. According to the Act, the builders will have to get approvals before every phase as all the phases will be considered a standalone project.
5. RERA makes it mandatory for the developers to submit all the necessary requirements like layout plan, government approvals, sub contractors for the project etc to the state real estate regulatory authority and pass the information to the buyers.
6. The practice of selling the apartments just by the build up area is illegal under RERA. The carpet area has to be mandatorily defined by the builders.
7. If the project gets delayed, the buyers suffer both psychologically and financially. RERA has provisions to make sure that the buyers do not pay the burnt for the delay in the projects. According to RERA, if the projects are delayed, the developers are supposed to pay the same interest to the buyers as the monthly EMI that the buyer is paying to the bank.
8. The maximum jail time for the offenders is three years with or without the fine.
9. The buyer will now be able to contact the developer with the written request if there is any deficiency of services within one year of the possession.
10. The developer cannot make any changes in the project after it has to be sold to the buyers, without their permission.
There are few provisions that are made by the RERA and it will support the buyers and stop the developers from exploiting the buyer’s interest.
1. According to the RERA guidelines, it is mandatory for the state government to establish a separate state real estate regulatory authority whose sole purpose will be to make sure the developers are keeping their promises. The buyers can approach the authority and address any grievance.
2. All the under construction properties also fall under the RERA regulations. Registration is compulsory for all the projects over 500 sq. mtr. or more than eight apartments. Failure to do so will be changed with a penalty which can be 10 percent of the total cost of the project. Repeated offenders can also face jail time.
3. The developers will have to put the 70 percent of the money deposited by the builder to another account called the Escrow Account. Builders will not be able to access and take out the money from the mentioned account to fuel and fund another project. This will ensure that the projects are completed on time.
4. Pre launch sale attracts more customers, but not anymore. According to the Act, the builders will have to get approvals before every phase as all the phases will be considered a standalone project.
5. RERA makes it mandatory for the developers to submit all the necessary requirements like layout plan, government approvals, sub contractors for the project etc to the state real estate regulatory authority and pass the information to the buyers.
6. The practice of selling the apartments just by the build up area is illegal under RERA. The carpet area has to be mandatorily defined by the builders.
7. If the project gets delayed, the buyers suffer both psychologically and financially. RERA has provisions to make sure that the buyers do not pay the burnt for the delay in the projects. According to RERA, if the projects are delayed, the developers are supposed to pay the same interest to the buyers as the monthly EMI that the buyer is paying to the bank.
8. The maximum jail time for the offenders is three years with or without the fine.
9. The buyer will now be able to contact the developer with the written request if there is any deficiency of services within one year of the possession.
10. The developer cannot make any changes in the project after it has to be sold to the buyers, without their permission.
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