RERA is nothing but the “Real Estate (Regulation and Development) Act 2016” which was implemented on March 26th last year and it came into action from 1st of May this year. This is where the realtors are asked to enrol their projects under this act within July 2017. So, developers are rushing to register in RERA to have a hassle-free process while selling their projects. Likewise RERA is applicable for investors, promoters and so on.
What does it do?
The RERA act was amended by the government in the parliament in order to safeguard investors who desire to buy properties and as well as enhance investments for the real estate market. This was brought into pass under section 92 and both the state and central are to notify the rules framed within 6 months of time. Though it is a short span the rule will enable a better future and life in the days to come.
Why is it necessary?
The rule came into existence as the buyers stated that there was an imbalance and profits that only the developers were acquiring. So, RERA was designed in order to make equal profits during transactions for both investors and realtors especially in the micro markets. Further, it will ensure to make realty easier with precise accountability and maintain transparency in all the state.
Pro’s of RERA to buyers
• Prior information on every small addition or renewals.
• Buyers can have a satisfaction in their dream houses with RERA.
• No promotions or launching can be done without registering in RERA.
• Investors have the rights to give 2/3 of rights to their desired person on their property.
• Plan of the house, layouts, title and the progression of the project will be intimated.
• Projects delivered within the promised time.
• Top-class quality of materials in construction is mandatory for 5 years.
• RWA implementation once the project has been completed within the specific period.
The major driving factor of this rule is that it caters a guaranteed purchasing of the apartments, villas, independent homes legally. This uplifts the standards of the real estate and its practises to the next level in the country.
Few points under this act include
Regulations
Protection of stake holders, acquiring information from a reliable resource or agents etc, can be assured in all the states and union territory. The forms have to be executed and approved by “Real Estate Appellate Authority (REAT)” within a month’s time. If there is any delay then a valid reason has to be mentioned for not approving the project.
Exclusive Account
One main reason for incompletion of projects is the transfer of funds from the ongoing projects to another new project. To avoid this problem 70% of the money received has to be kept exclusive for the particular project. This procedure will help realtors to work focused on each project without any tensions.
Penalty
Violating the rules will lead to severe action where 10% of the project expenditure and imprisonment has been implemented.
With these rules and regulations of RERA invest in your desired homes for a peaceful living.
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