The Council of States in India has passed a new bill in order to protect consumers from the real estate frauds. The bill which passed is known as RERA or Real Estate Regulation Authority bill. If you are not aware of this particular act then these are the ten things you should know about the bill.
Real Estate Regulation Authority is applicable for the every state in India. At the same time, every state has its own governing body for RERA. This bill is applicable for both of the residential and commercial project. Therefore, if a promoter is continuing in a residential project it is mandatory for him to get sanctioned by the government.
This act states that if a builder or a promoter is working on a project then it is mandatory for him to park 70 percent of his project funds in a particular bank account. This clause makes sure that a promoter can not invest in many projects at the same time. This law forces every builder to submit all the necessary details regarding any project and that includes the plan of the project and all the layouts and government approvals. The documents must be up to date as well.
There is a change in the current practice of selling apartments. Previously all the apartments used to sold on basis of super building value. But from now on only carpet value will be accepted.
Previously if there was any delay from the builder then he had no liabilities. But from the new rules,
the builder or the promoter has to pay liabilities to the customer.
There is a jail sentence for the builder or promoter who disobeys the clauses of RERA. The promoter may have to face a jailing sentence of three years if he has failed to meet the expectation. Sometimes the promoter has to pay a fine as well.
The buyer of a flat can surely contact the builder if there is any fault is noticed in the project within one year. If there is any kind of fault is reported the builder must response to it promptly.
The promoter can not change the plan once it is sanctioned. If he tries to change the plan then he may have to face the legal issues.
Every project which is more than 500 square meters or more is bound to register with RERA. If the project is not registered with RERA then it will not get any sanctions.
These are the 10 things you must know about Real Estate Regulatory Authority.
