Are you among those hapless buyers waiting for that promised home delivery? Is the builder making you run from pillar to post even after you have paid the required amount? At your wit’s end but don’t know who to approach? There’s help. The new real estate rules, notified Monday, loads the playing field in the home buyers’ favour.
The Real Estate (Regulation and Development) Act, 2016 (RERA) aims to bring transparency and accountability in the sector.
The rules will be applicable for five Union territories — Andaman & Nicobar, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep and Chandigarh. While Gujarat has already notified the rules, the state governments of Rajasthan, Maharashtra and Karnataka are in the process of formulating rules. Other states are likely to soon follow suit.
As per the provisions of the RERA, 2016, the regulatory authorities will have to be put in place by April 30, 2017, a day before the full Act is brought into effect.
Let’s decode it for you:
If you are a home buyer, here’s what you should know:
►Buyers can demand refund or compensation at an interest rate of the SBI’s marginal cost of lending rate (MCLR) plus 2% (effectively around 11%)
► Builder will have to repay the amount within 45 days of a claim
►Buyer will also have to pay the interest at the same rate (MCLR+ 2%) on any dues raised by developers, which is much lower than 15% to 18% interest rate charged by developers for delayed payments.
► The builder can withdraw amount from a special account only in proportion to the percentage of completion of the project
► No discrimination in sale of properties on any grounds
► Faster resolution of complaints as adjudicating officers, real estate authorities and appellate tribunals will have to dispose of complaints within 60 days
► RERA bring transparency as the builder will have to reveal information about everything related to project and company
If you are a builder, this is how the RERA impacts you:
► Builder will have to register the project with regulatory authority
► Developer will have to take insurance for the project
► Will have to deposit 70% of the funds collected into a separate bank account within three months of applying for registration
► Specify the scheduled completion date while registering the project
► Declare size of the apartment based on carpet area even if it was earlier sold on any other basis
► Declare information about number of open and closed parking areas
► Upload all information on website regarding number and type of apartments or plots, garages booked, status of the project with photographs floor-wise, status of construction of internal infrastructure and common areas with photos
► Provide information about status of approvals received and expected date of receipt, modifications in sanctioned plans and specifications approved by the competent authority within 15 days of expiry of each quarter
► Promoters of the real estate firm will have to submit authenticated copy of PAN card, annual report comprising audited profit and loss account, balance sheet, cash flow statement and auditors report of the promoter for the three preceding years, authenticated copy of legal title deed, copy of collaboration agreement if the promoter is not the owner of the plot during registration of projects
► As a relief, builders now don’t need to disclose income-tax returns as proposed earlier
► Fee for registration of projects and real estate agents with regulatory authorities reduced by half
Credits ET Realty