Real Estate Regulatory Authority (RERA) Act is aimed at protecting the interests of buyers in the real estate sector. First and foremost rights of a Home Buyer in RERA act is a mechanism for quick dispute redressal like conciliation forum. Right to compensation on issues like delay in project delivery, Occupation certificate, completion certificates. Grievances on matters of property pricing, quality of construction will be answered. Matters of title deeds and other land or building agreements will be solved. Benches and conciliation forums will solve disputes in an quick, efficient and transparent manner.
Benefits of RERA to Home Buyers
Delay in the projects can be addressed
Developers who default the delivery date will pay an interest rate of 2%
Possibility of imprisonment of up to three years.
Quarterly progress disclosure
Common area and amenities’ progress has to be updated quarterly on MahaRERA website
Every building has to produce its progress report on quarterly basis along with CA’s certificate on expenses incurred.
Selling by Carpet area
Selling of property can only be based on the carpet area. Built-up and super built-up areas are demolished. Earlier buyers would be misled by builders on the carpet area, super built-up area, they would receive. Simply because nobody measures these things, thereby builders would deceive the consumers.
Buyers Consent for any change in plans
Developers will have to acquire consent of two-thirds of the buyers in a project before changing project’s design or any other structure. Earlier the builder would change the plan any time without intimating the home buyers. Now this will be punishable or penalised by RERA act.
Responsible for any defect in the construction for 5 years
Quality of the construction has been a concern for many buyers. Structural defect that takes place to the property for up to five years from the date of handing over possession will have to be repaired by the developer. Builder will have to repair it within 30 days without further charge.
Use of your money on your project only
The developer will be required to transfer 70% of the money received from buyers to an escrow account. Post which, the money will be withdrawn as per the stage of the construction, that will be approved by engineers and chartered accountants of builders.
Conciliation forum for grievances to quickly solve disputes
CREDAI and NAREDCO are a part of conciliation bench in Mumbai and Pune. Disputes will be addressed quickly and amicably. RERA body is working on many such benches across major cities. This is a part of Alternate Dispute Resolution (ADR) mechanism.
Builders will need all clearances before selling
Builders and agents will have to register themselves with the RERA, disclose every detail about the project and will be able to sell projects only after the necessary clearances have been attained.
No more false promotions. What you see is what you will get
Advertisement will have to carry the RERA registration number
Honest pictures and on false commitments on amenities or look of the building
Rights of a Home Buyer in RERA act is aimed at protecting the interests of home buyers and providing financial transparency, legal transparency, Commitment transparency, Administrative redressal is ensured in the new rule of RERA law. RERA registered projects have to abide by Quarterly progress disclosure, be responsible for any defect in the construction, use money of home buyers on that project only (Escrow account)
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