New Real Estate Act : RERA Will Save You From Unethical Practices Of Builders
“Well, real estate is always good, as far as I’m concerned.” This is a saying by the President of USA himself. Yes, Donald Trump and even his daughter Ivanka Trump believe in Real Estate. This is what the US President Donald Trump has to say on real estate, “First and foremost, I’m a real estate person. And that’s what I love the most.
You and other Indians have always believed in real estate. Just look around you, how many of your friends and relatives have purchased plots of land, houses and apartments?
In real estate everything is fine except….Unscrupulous builders. Builder has promised possession of the apartment in 2 years and after 4 years you have still not got your apartment? The project you have bought does not have water and electricity connection approvals? The builder has changed the layout plan without your consent? When you take possession of your new apartment, you find the ceiling leaking and an improper drainage and fire safety system? The list is endless….
Many unscrupulous builders in India take you and other customers for granted. Don’t you think it’s time to teach these builders a lesson? Want to know more on residential apartments? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.
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RERA Will Save You From Unethical Practices Of Builders
The Real Estate Regulation and Development Act, RERA, will come into force on May 1st 2017. A real estate regulatory authority will be established under RERA, which will oversee all real estate transactions.
RERA could be a boon to you and other citizens, cheated by unscrupulous builders. It aims to protect home-buyers and increase investments in the real estate sector.
1. Builders and Real Estate Agents have to register themselves with RERA
According to the Real Estate Regulation and Development Act, if a real estate broker wants to offer his services, he has to register with the real estate regulatory authority and get his registration number. A builder has to register his project and mention the names and details of authorized agents who deal with the particular project. If you are a real estate agent you have to mention your registration number given by the real estate regulatory authority, on every sale you make.
RERA says, no builder/promoter can advertise, market, book, sell or invite you and other citizens to purchase a plot, apartment or a building in his project, without registering this project with the real estate regulatory authority. If the projects of the builder have already got the completion and occupancy certificates, he can continue to advertise and sell them. If a builder has not registered his ongoing projects, he has to register them before 31st July 2017.
2. Builder has to keep your money in an escrow account
The common practice of builders? They advertise a project even before the necessary approvals are in place, at prices 20–30% lower than market rates. You fall for these attractive ads and book an apartment in one of these projects paying your hard earned money.
The builder then diverts this money to some of his other projects. You are paying your hard earned money for the construction of someone else’s apartment. Is this fair?
RERA says the developer has to transfer 70% of the money received from you and other home buyers in an escrow account. This money would be withdrawn as the stages of construction are approved by the engineers and CA’s of builders.
3. Builder is responsible for the quality of construction
Taken possession of your apartment and found the ceiling leaking in the rainy season? This unfair practice could soon end.
RERA says, if there is a structural defect or a defect in quality or services provided by the builder, or the builder does not meet his obligations under the agreement for sale and you bring this to his notice within 5 years of possession, he has to rectify these defects within 30 days.
4. Builder can charge only for carpet area
Builders used to charge you for carpet area and also super built-up area. Carpet area is the area within the walls and super built-up area includes corridors, lift and even the lobby. RERA clearly defines carpet area as usable spaces like kitchen and toilets.
RERA says, the builder can charge you only for carpet area and not for super built-up area.
5. The builder has to pay you for delayed delivery
The unscrupulous builders favorite weapon, Delayed delivery. The builder promised possession of apartment in 2 years. After 4 years….Still no possession. You are stuck. You have availed a home loan and have to pay home loan EMI’s and also the rent on your rented apartment. You also lose tax benefits.
RERA says, if the builder delays possession of the apartment within the agreed time period, he would have to return the whole amount with interest, as mentioned in the sale agreement. If you don’t want to withdraw from the project, the builder has to pay you interest for every month of delay till the date he gives you possession of your apartment.
RERA will be a game changer in India. Instead of innocent buyers like you becoming victims of unscrupulous builders, fraudulent builders will have to run from the law. They will be caught and punished with fines and even a jail term. Be Wise, Get Rich.