Reasons Behind Purchasing a House
This case is handpicked as a house for many people is not just an investment but also a lifelong emotional attachment which has taken them years of efforts. As a consequence, when those dreams are tarnished by a free market where every dictatorship has the opportunity to alter the policies in their favour, everyone end up hurting. In order to bring some control to the industry, the central government introduced the Real Estate Regulation and Development Act, shortly RERA, in 2016.
Implementation of K-RERA in the State of Kerala
Soon after the commencement of year 2020, the state government inaugurated the Kerala Real Estate. Real Estate Regulatory Authority, K-RERA will help in bringing the central vision at the state level. K-RERA would be applicable to all projects, where the total land area to be developed in all phases is 8 or more apartments, including all phases and exceeds 500 sq. m. All projects where an occupancy certificate or completion certificate has yet to be issued should also be covered by RERA. The cutoff date for registration was marked as the 31st March 2020.
Key Stakeholders in RERA
The most important participants are the developer, the realtor, and the client. This act will be more oriented towards the consumer market and will empower the end consumer who pays for a house or an apartment more.
RERA – Key Objectives
- Enhance Enfranchisement: To decrease the chances of fraud and improve the timeline.
- Ensure Accountability: Work towards safeguarding the rights of the allottees as well as the homebuyers.
- Convince Both Parties: Assure the engagement of both the promoter and the allottee.
- Settle Issues at The Place of Origin: The need for a mechanism that would settle disputes expeditiously.
- Regulate Procedures: Make the profession recognized and establish a benchmark across India.
- Establish Clear Guidelines: Place certain obligations to the builders and to the buyers of their units.
- Make Regulation: Propose the establishment of an institution with the authority of enforcing contracts.
- Encourage Policy Making: Generate an upsurge in investment in the real estate industry.
How Will RERA Benefit Homebuyers?
Credibility of the Builder
All existing realtors are required to submit details regarding the projects under them and the ones completed, their funding details and building skills to get registered under the RERA. This will assist the regulating authorities in controlling defaulters in the industry and enhancing transparency.
Comprehensive Information Regarding The Project
In a tough stance to prevent malpractice, builders are required to provide information regarding the land status along with its characteristics, the person owning the land, the approval construction plans – if any, and a timeline for project completion. These details will also act as a legal basis in case there are further questions or conflicts concerning what the builder has said in the future. As a result, misuse of projects is avoided.
No Deceptive Offers on Advertisement
Builders are also prohibited from advertising the projects until registration is received. This is to ensure there are no unfulfilled promises made to the clients. Once registered, advertising should be strictly according to what has been put forth to the RERA authorities to avoid discrepancies.
Uniform Approach Towards Calculation of Floor Space
The total area that a unit is expected to be sold multiplied by the ratio of carpet area that the unit has in it will be the universal metric. Such a metric eradicates ambiguity which is one of the key concerns of buyers.
see what is happening with your investment
A client will be able to know at any stage what has been completed in regard to the construction of the project through the RERA website. This makes it very easy for people who are based in different countries such as NRIs and do not have the opportunity to visit the site often.
Penalty for Project Delays
If a building project is delayed somehow, the owner will be responsible for the interest incurred by the project due to the loans taken out on the flats under construction. In situations when there is a delay in the project, the buyer may choose to exit the project and ask for total repayment or seek settlement for the matters raised while the project is still being worked on.
No Changes in the Sanctioned Plan
Consumers also report developers who did not have at least two-thirds of all owners sign off on any additions or changes that were made to approved plans, layout plans, specifications or designs.
Rectification of Structural Defects
Structural problems that arise within five years from the -handover- date should be put right by the developer at no cost to the buyer. In the case of non-compliance with this requirement the buyer is entitled to lodge complaints with the authority.
Reserve Account for Every Project
As per K-RERA every project needs to have a separate bank account so that developers do not misuse the funds. K-RERA provides for an audit of the project by registered Chartered accountants and engineering surveyors to be performed every six months.
Standardization of Sale Agreements
RERA introduces a uniform sale agreement applicable for all builders across the country and all subsequent sales, in which scope of work is articulated in the agreement and which will protect both sides in the potential litigation.
RERA Act – Allowe’s Rights and Obligations
Major Rights And Responsibilities of Homebuyers
- Secure Necessary Papers Site: Supported plans, layout plans, and specification of the project at hand awarded to home buyers by the authority.
- Be Informed of the Progress of Work: Facilities such as water, sanitation, electrification and other necessities phase completion updates can be sought by home buyers.
- Take Possession: An allottee’s apartments as stated in the promoters declaration can be claimed by allottee and the homed buyer association can take common areas.
- Claim for Refunds: Buyers claiming for refunds on interest and compensation stands a chance provided the promoter contravenes the contained terms and conditions of the agreement or possession is not made.
- All Required Papers Are Given: Common area papers and important plans including the ones for buyers must be handed out afterwards for possession.
- Possession of Units: Starting from allotment of the unit, the permitted areas must be formed within a gap of two months otherwise penalties may follow.
- Payment of Allotted Portion on Time: It is the responsibility of the allottees to make all payments on the date provided in the agreement for example khata, paying urban tax and society fees.
- Joining of the Associations: Every allottee is obliged to join the associations or cooperatives getting formed.
- Conveyance Deed Registration: All the persons who receive the property from the developer take part in the registration of the conveyance deed by the developer.
Conclusion: The Changes brought about by RERA in the Indian Real Estate Sector
There are many expectations from RERA, it seems RERA has provided what this industry needed for a long time due to the problems that are rampant in the real estate industry.
Author – Dream Location
Offering a wide range of home buying services, Dream Location is the most trusted real estate brand in the country. We understand that the process of buying a house in the real estate market can be quite frustrating and we aim to make this process easier, informative, and straightforward for home buyers. Through our blogs, we share relevant information that we think would be helpful in various fields related to real estate.
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