Buyers Concerned About The Delay In The Projects Due To RERA
Jun 12, 2017 Real Estate News
Potential buyers are relieved as RERA has gone into full force. They have a sense of security that they now have much stronger and stricter laws to safeguard their interest and not get exploited by the developers. While the states have laid out their RERA rules, this has also raised many questions about the already ongoing projects. The buyers want to know if the ongoing projects will get delayed or not.
Concerns over the ongoing projects that need immediate answers:
According to the law, ‘Provided that projects that are ongoing on the date of commencement of this Act and for which the Completion certificate has not been issued, the promoter shall make an application to the Authority for Registration of the said project within a period of three months from the date of commencement of this Act’.
1. Under construction projects:
The properties that are under construction will need some time to fulfil all the compliances. Since the projects are not likely to get revoked, acquiring and submitting the necessary details and papers will take some time. Some states like Rajasthan, Uttar Pradesh and Maharashtra have excluded the registration of the under construction projects where the completion certificate and occupation certificate has been used interchangeable. Other states have yet to decide on the issue.
2. Projects where completion certificate has been granted but not others:
Many buyers have been suffering immeasurable either because the completion certificate has been given with the possession or the possession has been given without the completion or occupancy certificate. These buyers suffer from lack of basic amenities and the developers [ay not much heed to their concerns. There have been cases in Noida, Bangalore, and Mumbai over the same. These buildings need to get regularised. The process of obtaining the certificate will surely delay the project.
3. Projects where the completion certificate has already been given:
As the time for RERA coming into force came near, many developers rushed into submitting the certificate of completion. The charges for the same are high as well. Now with the pool of application for the completion certificate, the delay in the project is expected. In Uttar Pradesh almost 60 percent of the flats are allotted, are exempted from RERA. But the same is not the case everywhere.
4. Other concerns:
RERA is not one sided law. It helps in serving both the builder and buyer. It also gives the chance to the builders to fix the issue and deliver the project as promised to the buyer. Builders are free to choose the timeline in which the project will be completed and handed to the buyers given that it isn’t an unreasonable amount of time.
For example, if the project was launched eight years back and the builder is asking for four more years to complete the project, then it is unreasonable to demand and it cannot be granted.
The law mentions that the extension of the ongoing projects cannot be beyond a certain limit. The extension of the project will be accompanied by the demand draft from any scheduled bank and the amount will be double the registration fees along with the note explaining the reason for an extension.
Concerns over the ongoing projects that need immediate answers:
According to the law, ‘Provided that projects that are ongoing on the date of commencement of this Act and for which the Completion certificate has not been issued, the promoter shall make an application to the Authority for Registration of the said project within a period of three months from the date of commencement of this Act’.
1. Under construction projects:
The properties that are under construction will need some time to fulfil all the compliances. Since the projects are not likely to get revoked, acquiring and submitting the necessary details and papers will take some time. Some states like Rajasthan, Uttar Pradesh and Maharashtra have excluded the registration of the under construction projects where the completion certificate and occupation certificate has been used interchangeable. Other states have yet to decide on the issue.
2. Projects where completion certificate has been granted but not others:
Many buyers have been suffering immeasurable either because the completion certificate has been given with the possession or the possession has been given without the completion or occupancy certificate. These buyers suffer from lack of basic amenities and the developers [ay not much heed to their concerns. There have been cases in Noida, Bangalore, and Mumbai over the same. These buildings need to get regularised. The process of obtaining the certificate will surely delay the project.
3. Projects where the completion certificate has already been given:
As the time for RERA coming into force came near, many developers rushed into submitting the certificate of completion. The charges for the same are high as well. Now with the pool of application for the completion certificate, the delay in the project is expected. In Uttar Pradesh almost 60 percent of the flats are allotted, are exempted from RERA. But the same is not the case everywhere.
4. Other concerns:
RERA is not one sided law. It helps in serving both the builder and buyer. It also gives the chance to the builders to fix the issue and deliver the project as promised to the buyer. Builders are free to choose the timeline in which the project will be completed and handed to the buyers given that it isn’t an unreasonable amount of time.
For example, if the project was launched eight years back and the builder is asking for four more years to complete the project, then it is unreasonable to demand and it cannot be granted.
The law mentions that the extension of the ongoing projects cannot be beyond a certain limit. The extension of the project will be accompanied by the demand draft from any scheduled bank and the amount will be double the registration fees along with the note explaining the reason for an extension.
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