Real Estate Regulation and Development Act - RERA
Benefits to Buyer
- The buyer is entitled to receive information about the sanctioned plan, layout plan as approved by the competent authority, stage wise time schedule of the project completion and the services promised by the real estate developer like drinking water facility, electricity, sanitation etc. After receiving the physical possession of the unit, the buyer has a right to obtain the necessary documents and plans including that of the common areas.
- The buyers can claim possession of the unit and the association of buyers can collectively claim possession of the common areas as declared by the builder. This has to be as per the Apartment Ownership act of the State.
- If the real estate developer fails to meet the timeline or does not deliver what was promised, the buyer has a right to claim refund of amount paid along with prescribed interest and compensation for the same.
- Also buyers will have to be updated about project progress, sales and construction status by the builder.
Responsibilities of Buyer
- It is mandatory for a buyer to make timely payments to the real estate developer as per the agreement for sale. He will also have to pay his share of registration charges, municipal taxes, maintenance charges, ground rent, electricity charges, water supply charges and any other services.
- Once the occupancy certificate is issued by the real estate developer, the buyer is required to take possession within two months’ time.
- If the buyer is not able to make timely payments for his purchase, he is required to pay interest at a prescribed rate. It is compulsory for a buyer to exhibit active participation in the formation of an association, a cooperative society or any federation of buyers. A buyer shall participate towards registration of the conveyance deed of the unit.
Few Important Compliances by Builder
- Informing allottees about any minor addition or alteration.
- Consent of 2/3rd allottees about any other addition or alteration.
- No launch or advertisement before registration with RERA.
- Consent of 2/3rd allottees for transferring majority rights to 3rd party.
- Sharing information project plan, layout, government approvals, land title status, sub-contractors.
- Formation of RWA within specified time or 3 months after majority of units have been sold.
Which projects fall under RERA
- Commercial and residential projects including plotted development.
- Projects measuring more than 500 sq.mts. or 8 units.
- Projects without Completion Certificate, before commencement of the Act.
- If the project is only for the purpose of renovation / repair / re-development which does not involve re-allotment and marketing, advertising, selling or new allotment of any apartments, plot or building in the real estate project, will not come under RERA.
- Each phase is to be treated as standalone real estate project requiring fresh registration.