Property investments are the most coveted form of investment. Based on several aspects, residents can achieve formidable returns to prepare for an uncertain future. Residents are now gradually transitioning from living as tenants to real-time home owners. Sobha Dream Gardens by Sobha developers is a unique project which is strategically located to perfection at Bellahalli in Bangalore. The location has a lot to offer and has witnessed tremendous levels of social infrastructure development.
With structures nothing short of architecture brilliance, residents can now enjoy stunning views of landscaped gardens surrounding the project. In order to establish long-standing relationships and incorporating a customer-centric approach, Sobha Dream Gardens welcomes investors to the site so they experience the amenities, floor plans and take an entire tour of the property to estimate property development from the inception until completion. Now, with the introduction of rules put forward by RERA and introductory tax reforms such as GST, the demand for affordable homes has risen significantly. This has forced renowned property developers to devise new marketing strategies to serve majority of the urban population and release the excess inventory that has been stocked up. With these stringent laws in place, a sense of uniformity in property development is in order and measures have been taken to aid the customers as much as possible so they have a smooth transition to owning new properties for a secured future. However, if these rules are not abided by and if expectations that are set aren’t met on a timely basis, property developers are liable to huge risks which would indeed decrease the credibility and their reach in the market.
Let’s now have a look at some penalty’s realtors are liable to if they aren’t in line with the laws framed by RERA.
Failure to register the property with RERA
With every residential project, comes market laws that have to be adhered to for smooth product and service offerings. According to RERA, it is necessary that a property developer registers his property with RERA before the conception of the project. If the realtor fails to do so, they are liable to pay 10% of the actual cost of the project to RERA without fail. This is an essential pre-requisite that property developers should follow in order to avoid such penalties. In situations where a property developer fails to register the property on a regular basis, they can even face imprisonment which up to 3 years along with the fine that would be imposed initially. RERA also has the power to imply the fine along with the imprisonment clause at the same time. Consequently, property developers are not allowed to promote their project or indulge in any marketing programs until they have registered their property with RERA or until they are provided with a RERA registration number.
Submission if incorrect information to RERA
Once the property is registered under RERA, it is important that property developers provide nothing but the truth when it comes to property information. The nature of buildings, specifications, legal land ownership documents, amenities devised along with the floor plans should be clearly furnished to RERA. Failure to do so may result in realtors paying 5% of the original property price.
Penalty because of delay in project delivery
Real estate investments are the most crucial form of investments as that would make sure your future is safe. This is a one-time investment which should be handled with utmost caution. Residents have a fixed mindset that they employ when they think about investing in a particular residential project. To be a prominent player in the real estate market, developers have set expectations that are realistic in nature and meet them according to the sales agreement. If the developer fails to deliver the project on time that was mentioned in the agreement, they are liable to pay 10% of the money invested by the client.
Separate account to be created for structural alterations
Generally, a percentage of money that was invested by probable customers was used for creating funds for other upcoming projects which didn’t make much sense as property developers were going short of funds incase there were any discrepancies in the structure of the current project. RERA has now come with rules that a property developer has to maintain a separate account for the funds that are received by investors which can only be used if any faulty structures are noticed in the current project. However, money can be debited from this account only after prior approval from a chartered accountant of an architect.
In conclusion, Sobha Dream Gardens located at Bellahalli has maintained quality benchmarks like no other and have effectively transitioned while adhering to strict rules put forward by RERA.