What Is RERA? What are the need for having RERA Approval?
RERA also know as Real Estate Regulation and Development is a government initiative which is regarded to be one of the landmark legislation for Real estate sector. The main propaganda of RERA is to make sure that there should be transparency between buyer and seller in respect to accountability, and financial discipline. RERA works for as a uni body, when it came into action on from 1 May, 2016 (with 69 sections notified Remaining provisions came into force on 1 May, 2017.
Why RERA Approval is Necessary?
The Real Estate Regulation and Development Act, (RERA) is a government act that provides the transparency in property buying between the seller and buyer. RERA is mandate for any commercial and residential real estate establishments. Every developers have to resister their property under this act. Failing to do so will subject to unnecessary complication and delay of completion. for launching a project if the project land is over 500 square meters or includes eight apartments in the project.
RERA Benefits: Buyers Point Of Prospect
RERA act is deigned and implemented to safeguard the buyers from being misled or cheated by the builder or to avoid the situation of not delivering the project on time.
Buyers will not face any delay on the hand over of the project, since the builder is imposed fine on delaying the delivery.
Overcharges beyond the walls is avoided in RERA properties since the builders are supposed to sell the properties based on carpet area and not super built up area of the unit.
Builder is responsible for the quality issues up to 5 years after handover of the project and is subjected to rectify it within 30 days of complaint raised and is held responsible for the defects if any.
Builders will not be allowed to use the buyers money to build other projects and divert the funds raised on the particular project. All the money is monitored and accounted.
To make your investments safe invest in the RERA approved property Sobha Dream Gardens in Bellahalli, Bangalore for the reasonable returns.
RERA Penalties: Lookout For Developers
|Offence-Wise Penalties for Promoters|
|Section 59||Non-Registration Of A Project||10% Of Estimated Cost Of Real Estate Project|
|Section 59||Not Obeying Orders Or Directions In Connection With The Above Offence||Imprisonment Up To 3 Years With An Or Without Fine Being 10% Of The Estimated Cost Of Real Estate Project|
|Section 60||Providing False Information Etc. And Other Conventions||5% Of The Estimated Cost Of Real Estate Project|
|Section 61||Contravention Of Any Order Of The RERA||Penalty For Every Day Of Defaults Which May Cumulatively Extend Up To 5% Of The Estimated Cost Of Real Estate Project|
|Section 64||Contravention Of The Orders Or Direction Of The Appellate Tribunal||Imprisonment Up To 3 Years With Or Without Fine Which May Cumulatively Up To 5% Of Estimated Cost Of Real Estate Project.|
|Offence-Wise Penalties for Real Estate Agents|
|Section 62||Contravention Of The Applicable Provisions Of The Act||Rs. 10,000 Per Day Of Defaults Which May Extend Up To 5% Of The Cost Of The Property|
|Section 65||Contravention Of The Orders Or Direction Of The Rera||Penalty On A Daily Basis Which May Cumulatively Extend Up To 5% Of The Estimated Cost Of The Property Whose Sale Or Purchase Was Facilitated|
|Section 66||Contravention Of The Orders Or Direction Of Appellate Tribunal||Imprisonment Up To 1 Year With Without Fine Which May Extend Up To 10% Of Estimated Cost Of Project|
So, Its important to know about RERA updates and its also good to go for RERA approved residential properties to avoid complication.