Salient Features of RERA which came into force in full on 1st May, 2017.
Real Estate Regulatory Authority (RERA) is a regulatory body with the sole aim of safeguarding the consumer interest. The Act came into effect keeping in view the increasing incidents of complaints against the builders/ developers, mostly related to delay in possession to homebuyers.
Choose the Right project:-
All residential projects under planning area, which exceed 500 Sq.mt land area or 8 units of development should be registered with RERA.
Once the registration is granted by the Regulatory Authority, the builder or developer has to publish entire details of their projects on the website of the Regulatory Authority.
Customers will have hassle free buying experience choosing the right property and developer from RERA registered projects.
The registration is valid for the period indicated in the project application as the time required for completion of the project. Once this period is over, the Regulatory Authority has a right to revoke the registration granted for this project.
Projects completed and received completion certificate will not be covered under RERA.
RERA applicable projects cannot be promoted without obtaining all statutory approvals. In other words, such projects cannot be sold without obtaining necessary Planning Approval by CMDA or DTCP and without RERA Registration.
Know your Carpet Area/ Ask for Carpet area of your apartment:-
Developer is responsible to specify the exact carpet area of the apartment to the buyer. This will help the buyer to know the actual usable space he gets inside the apartment.
In case the developer delays project completion beyond the date committed in the agreements or sale deed, buyer will be eligible for quick relief and aid.
If the developer has not handed over the property by the date mentioned, buyer has the right to withdraw from the project.
If buyer chooses to withdraw from the project, he has the right to be compensated for the full amount paid till date with interest. Buyer need not file a complaint or case to avail this right; he needs to only send a request to developer.
If buyer chooses not to withdraw from the project, he has the right to be compensated with interest for every month of delay.
If developer is not voluntarily compensating, the buyer has the right to file a complaint before the Regulatory Authority. Each state Regulatory Authority appoints an officer, who will conduct an inquiry as a Judge. Once the matter decided will pass an immediate order.
Buyer need not compulsorily hire a lawyer to represent; he can appear himself or even hire a chartered accountant or cost accountant or company secretary.
If buyer is not satisfied with the decision of the RERA officer, can file an appeal before the Appellate Tribunal set up by the State under this law within 60 days.
Pay only 10% as advance:-
Developer can collect only 10% of the total sales consideration as advance before entering into agreement.
Developer is responsible to deliver all common amenities & Facilities committed in the agreement executed with buyer.
Sale Deed Registration:-
Sale deed can be executed in favor of the customer on receipt of entire payments from customer.
Developer will be updating the construction status of the project in the RERA website on quarterly basis. This will help the buyers to monitor the construction status easily.
Every stage of construction completion has to be certified by Architect, an engineer and an Auditor before customer is billed for the particular construction milestone.
RERA instructs developers to deposit 70% of customer collection in a separate bank account, so that payments collected from customer are ensured to be utilized for the construction of the same project.
Defect liability of the project:-
Developer shall be responsible for a period of 5 years from the date of handing over of the apartment for any structural defects in the building.
In case of any dispute with developer, instead of long drawn civil suits, homebuyers could approach RERA body for quick and easy redressal of disputes.
To know RERA Act & RERA Tamil Nadu Rules. Please click the below links.
Disclaimer: “The above information is a gist of the benefits of RERA Act and Tamil Nadu Rules to the customers compiled to the best of our knowledge, without any liability on us. Reader is advised to refer to Real Estate (Regulation and Development) Act, 2016 and the respective Rules by the concerned State Govts. for accuracy and correctness.”
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