Eight RERA Rules That Are Going to Be Applied on the Developers
Jun 03, 2017 Real Estate News
RERA is going to be a game changer for the real estate in India and the potential buyers have been waiting for it to come into full force for a long time now. We have discussed the provisions RERA has already.
Today, we discuss lesser known provisions of RERA that every home buyer should know.
1. Developers must pay 10 percent to the buyer in case of delay:
The Real estate development authority (Madhya Pradesh) has laid out the law that the developers will pay 10 percent to the buyer if the project gets delayed. This has come as a huge relief to the buyers who weren’t sure about the responsibility of the developers if the projects are delayed. The projects will be registered from now on only if the developer agrees to this clause.
The rate of 10 percent is higher than SBI’s MCLR rate. It goes both ways. If the buyer fails to make the timely payment, he will have to pay 10 percent to the developer as well.
2. Last chance to regularise delays:
The developers will get the last chance to regularise the delay of the project. If not met then the developer is liable to pay the penalty or in the worst case a jail time for the developer.
3. Developers to fix any structural flaws after sales:
The law makes it very clear that if there is any structural flaw or any defect pointed by the buyer than the developer is liable to fix it free of cost. The issue must be addressed with 30 days of bringing into light. The developer is supposed to fix any structural defect for free for the five years from the time of possession taken.
4. Developers responsibility to obtain lease certificate:
Like completion certificates, obtaining the lease certificate from the owner is necessary for the developers. The certificate should mention the period of lease and the payment details. The document should be made available to the buyers.
Not obtaining the lease certificate may cause a problem in future. if the buyer does not have a lease certificate, then the stake on the property stays negated.
5. Developer must pay the due until the property is transferred:
Any bill or payment regarding the property until the property has been transferred to the buyer has to be paid by the developer. This includes bank charges, maintenance, local taxes etc.
6. The agreement will be required for the transfer for the amount more than 10 percent:
The developers will require showing the document for the transaction of the amount more than 10 percent. No transaction can take place if the amount exceeds 10 percent of the cost of the property.
7. Alterations should be approved:
If the developer wants to alter the project or the design after it has launched or the project is in a mid way, then the developer will have to take the permission from the authority for the same.
8. Developer cannot sell the rights to the third party without notice:
There has been a case in the past where the developer has sold the property rights to the third party. They will not be able to do the same anymore without notifying the buyers.
Today, we discuss lesser known provisions of RERA that every home buyer should know.
1. Developers must pay 10 percent to the buyer in case of delay:
The Real estate development authority (Madhya Pradesh) has laid out the law that the developers will pay 10 percent to the buyer if the project gets delayed. This has come as a huge relief to the buyers who weren’t sure about the responsibility of the developers if the projects are delayed. The projects will be registered from now on only if the developer agrees to this clause.
The rate of 10 percent is higher than SBI’s MCLR rate. It goes both ways. If the buyer fails to make the timely payment, he will have to pay 10 percent to the developer as well.
2. Last chance to regularise delays:
The developers will get the last chance to regularise the delay of the project. If not met then the developer is liable to pay the penalty or in the worst case a jail time for the developer.
3. Developers to fix any structural flaws after sales:
The law makes it very clear that if there is any structural flaw or any defect pointed by the buyer than the developer is liable to fix it free of cost. The issue must be addressed with 30 days of bringing into light. The developer is supposed to fix any structural defect for free for the five years from the time of possession taken.
4. Developers responsibility to obtain lease certificate:
Like completion certificates, obtaining the lease certificate from the owner is necessary for the developers. The certificate should mention the period of lease and the payment details. The document should be made available to the buyers.
Not obtaining the lease certificate may cause a problem in future. if the buyer does not have a lease certificate, then the stake on the property stays negated.
5. Developer must pay the due until the property is transferred:
Any bill or payment regarding the property until the property has been transferred to the buyer has to be paid by the developer. This includes bank charges, maintenance, local taxes etc.
6. The agreement will be required for the transfer for the amount more than 10 percent:
The developers will require showing the document for the transaction of the amount more than 10 percent. No transaction can take place if the amount exceeds 10 percent of the cost of the property.
7. Alterations should be approved:
If the developer wants to alter the project or the design after it has launched or the project is in a mid way, then the developer will have to take the permission from the authority for the same.
8. Developer cannot sell the rights to the third party without notice:
There has been a case in the past where the developer has sold the property rights to the third party. They will not be able to do the same anymore without notifying the buyers.
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