Clarity in REALTY
In our endeavor to assist our customers, we are demystifying the recently passed Real-Estate Regulatory Bill, which will make property buying a hassle-free process and ensure utmost transparency, on the part of a developer.
Buying a home will never be simpler than or as easy as this – in a landmark decision to improve functioning within the real-estate sector, the Rajya Sabha recently cleared the Real Estate Regulatory Act (RERA); a Bill worth mentioning in terms of the tremendous impact it will create in making home buying and investing in property, a seamless process. In a nutshell, RERA offers step-by-step simplified guidelines, policies and procedures to protect the rights of consumers investing in both commercial and residential projects, a set of rules to standardize the land development process by builders and a code of etiquettes that Indian Realty would abide by, to expedite the completion of real-estate projects. Transparency is the key here. Now as a buyer, you will be empowered with the right to know everything about a project. This law makes it mandatory for developers to submit complete information on issues such as project plan, layout, government approvals, land title status, project sub-contractors and schedule for completion to the State Real Estate Regulatory Authority and then in effect, pass this information on to the consumers. All projects that are under-construction have to be compulsorily registered within three months of setting up of the regulator, and a developer cannot make changes to original plans or the structural design without the consent of a minimum two-third of the customers.
There is much to celebrate because of this bill – you will not encounter major delays in acquiring your dream home. To make sure, a project is delivered on time, RERA also jotted down some rules. This Act obliges the developer to park 70% of the project funds in a dedicated bank account. This will ensure that developers are not able to invest in numerous new projects with the proceeds of the booking money for one project, thus delaying completion and handover to consumers. This Bill ensures that home buyers no longer have to be stressed about having their life-savings invested in a project that remains delayed or incomplete for years on end, since the RERA will act as body that will address and tackle consumer concerns and grievances, in order to reduce conflict between investors and defaulting developers. It also now allows you to contact a developer in writing within one year of taking possession regarding any deficiency in the project handed over. The Bill empowers home buyers to live a hassle-free life, and ensures that developers stick to their project deadlines and maintain utmost transparency. To understand RERA in its actuality, visit www.indiacode.nic.in