In 2016, the Real Estate (Regulation and Development) Act, now colloquially known as RERA was brought in by the Indian government. The act aimed to bring together homebuyers, brokers, and real estate investors together in a bid to aid transparency & efficiency in the real estate sector.
While most developers, brokers, and property dealers are aware of RERA 2016, and its rules, it’s also crucial for homebuyers to be aware of sections of the Act that directly impact their real estate interests and can help them make wiser and more informed decisions.
In this article we’ll delve into the essential RERA regulations that every homebuyer should know.
Mandatory Registration
Scope of Registration
One of RERA’s cornerstone regulations is the mandatory registration of real estate projects. Section 3 of the RERA Act (prior registration of real estate) requires all real estate projects with more than eight apartments or a land area of more than 500 square metres to register with the RERA authority.
Requirements for Builders
Builders must complete this registration before engaging in any type of advertising, marketing, booking, selling, or offering apartments for sale. This regulation ensures that only authorised projects are promoted, protecting homebuyers from deceptive practices.
Disclosure Requirements
Detailed Project Information
Section 4 of the RERA Act talks about the application for registration of real estate projects. This facilitates transparency, which is beneficial for both property dealers and homebuyers. You’ll have to disclose comprehensive details about the property, and you’ll get to know many more details such as sanctioned plans, layout plans, specifications, amenities, projected timeline for project completion, and so on.
Changes To Plans Already Improved
More importantly, any changes to the approved plans require the consent of two-thirds of the allottees and prior written approval from the RERA authority (Section 14(2)). This provision ensures that homebuyers are fully informed about the project they are investing in and protects them from unauthorized modifications.
Possession and Refund
Timely Possession
Timely possession is an important aspect of any real estate transaction. Section 19(e) requires builders to hand over possession of the flat within the time frame specified in the agreement for sale.
Refund Provisions
If the builder fails to do so, the allottee may seek a refund with interest and compensation under Section 18. Furthermore, if the project is cancelled due to suspension or revocation of registration, homebuyers are entitled to a refund. These provisions protect purchasers from unnecessary delays and financial losses.
What is the Builder’s Responsibility?
The biggest concern for any homebuyer is the quality of construction and what will the longevity of the property be. For this, Section 14(3) of the RERA Act makes it mandatory that builders rectify any kind of structural defect or issues in quality within five years of possession given, at no extra cost to the buyer.
Quality Assurance
Ensures that the buyer receives a structurally sound, good-quality constructed apartment, hence minimizing the chances of future expenses on repairs.
What Are The Obligations of Homebuyers in an Occupied Property?
Timely Payments
Although RERA is implemented with various protections, some buyers are responsible for the developer. Section 19(f) stipulates that the buyer must pay or service the amount promptly by the terms of the sale agreement. If one fails to do this, the law demands that the person pay an interest amount to be determined by the law.
Taking Possession
This apart, Section 19(g) provides that the buyer will be under obligation to take possession of the property within two months of the occupancy certificate being issued to the buyer. Compliance with these stipulations is of vital importance to ensure smooth transactions and also to maintain the project financially viable.
Grievance Redressal
Registration of Complaints
RERA 2016 has under it established an effective system for grievance redressal regarding any violation or non-compliance. Under Section 31(A), any homebuyer can now file a case with the RERA authority where the builder has defaulted on his part.
Powers of the RERA Authority
The authority can impose penalties on errant builders and give relief to aggrieved buyers (Sections 7, 8, 59, 61, 63, 64). This machinery brought homebuyers to a platform from where they could raise their voice and look towards justice.
Bottom Line
The RERA act has revolutionised the real estate sector for everyone. For homebuyers, increasing transparency and accountability on part of the developers, further protecting homebuyers’ interests.
However, as a homebuyer it is your duty to understand your own rights and responsibilities under RERA 2016, including the need to disclose details of the project, abide by quality guidelines, and takeover possession in a timely manner.
Additionally, they should use the grievance redressal mechanisms to resolve any disputes. Homebuyers who stay informed about RERA can make secure, well-informed investments and confidently navigate the real estate market.
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