What is Rera in Real estate
What is RERA act?
The Real Estate (Regulation and Development) Act, 2016, (RERA) is an act passed by the Indian parliament. The RERA seeks to protect the interests of home buyers and also boost investments in the real estate sector. The act came into effect 2017, each state has passed with notifications and having list of builders and their registration. The act RERA aimed as simpler for home buyers to purchases simpler and transparent. There is always different approach of sales strategies by each builder, sometime it become confusing to the buyers. There is no check on quality of works and handing over period in some transactions. In some cases cash crunch developers used to divert funds from one project to other causing delay in handing over projects. Hence RERA has been introduced to bring transparency and improve the customer assurance in the real estate sector. It came amidst rising complaints of fraud against the developers.
Some features of RERA act is as given below:
FORMATION OF RERA
Real Estate Regulation Authority, or more commonly known as RERA, is an Act introduced by the government of India to protect the interests of homebuyers. Launched in May 2017, the Act aims to regulate the sector with the purpose of boosting customer confidence and transparency. The act has been brought to protect the interest of the buyer from various aspects which are linked with purchase of home from developers. Under RERA act helps in various issues such as delays in project delivery, construction quality, project approvals, pricing etc.
POOR QUALITY OF CONSTRUCTION
If the quality of construction is poor and any structural defects found, it the responsibility of promoter to fix such defects under clause no 12 of RERA, it will have to be fixed by the developer. The Act also states that such a defect will have to be fixed within 30 days of notice, without any charge. RERA not covers other repairs such as plumbing; painting etc may fade due to wear and tear. As per clause no 15, Buyers should maintain properties under formation of societies in keeping their complex corridors etc which are not covered in RERA once allotment was done.
FALSE PROMISES BY BUIDERS
It is mandatory for every builder must show their registration. Under RERA act the builders cannot advertise which are not be delivered to the buyer. Any changes and modifications in project require consent of Buyer under clause no 14.
PROJECT CLERANCES
All the builders must register in RERA and obtain all clearances which are required for any project. The clearances have to be informed to buyer. Such project clearances safeguard the project and help in timely completion of the project.
COMPLAINT ADDRESSAL
Complaints related to builder, agent has to be resolved by the builder within 120 days of filing and if there is any non compliance can lead to imposing penalty on promoter.
PROJECT DELAYS
Generally construction projects may be delayed on several reasons. If the projects delayed to force majeure, RERA act cannot be evoked. If the delays happened due to promoters it will be compensated under RERA under clause no 7.6 Also, if you don’t want a refund, you will be entitled to an interest every month, starting from the due date.
CARPET AREA IS THE MEASURE IN AGGREMENT OF SALE
As per clause no 26 of RERA, the sale agreement shall referred to carpet area of the [apartment/Plot] to the total carpet area of all the [Apartments/Plot] of the project which makes a check in inflated rates for the area that buyer is not using.
FORMATION OF SOCIETIES TO AP REGISTRATION
As per clause no 19, RERA act also helps in applying formation of societies for projects by developer/promoter.
CONCLUSIONS
Hyderabad city has expanded beyond outer ring road resulting various gated communities and townships. There is also adverse effect due to development of city; the negative aspects cannot be ignored. The concrete towers and Growth of population has created unwanted traffic congestion, air pollution and water scarcity. The government bodies must be more vigilant and implementing strong norms in approving various projects by promoters. Hence they should allow only projects like srigdha – rising east, which come with spacious townships and ample space for nature and people.