For many years, the real estate industry was unregulated as well as in favor of developers and builders. From bearing massive project cancellation loss to getting delayed possession, all of the problems have to be borne by the real estate investors.
Even in worst-case scenarios, homebuyers need to vacant the society even after living there for 10-15 years. This is because the builder made a mistake by not receiving approval from the government for the particular project.
However, now to deliver justice and accountability to the industry, the government introduced a new rule that is Real Estate Regulatory Act, 2016. The will create a fair transaction between the buyer and seller of properties.
In this article, we will discuss the top 5 Rera Rules and Regulation that you need to know.
- Registering Project with RERA:
Every residential and commercial real estate project, where the land is over eight parameters or 500 square meters, has to register with Real Estate Regulatory Act to launch a project. This will provide benefits for both execution and project marketing.
The developers and builders have to provide all the details such as layouts, carpet area, sanctioned plan, location of project, area, and the number of garages, etc. Only then they will be provided clearance by Rera Regulations.
- Quarterly Updates on Construction Projects:
After developers or builders are done submitting details, they need to upload the project details including the number of properties sold out, government approval confirmation or pending list, and completion schedule every three months from the starting date. Additionally, they have to provide documents of proceedings. These Rera Guidelines for Buyers will help you to check the progress of the project online.
You can check the online progress of House for Sale in Vile Parle East Sale.
- Sale Agreement Standardization:
The earlier sale agreement format stated that home buyers would be penalized on any default but promoters won’t face any penalization on similar defaults. However, as per New Rera Rules, a standard sale agreement has to be applied between homebuyers and promoters to protect them from penalties as well as ensuring equality.
Additionally, the sale agreement has to mention particular details of the project including the construction of apartments and buildings, along with the internal development, date of the construction and plot of the buildings, etc.
- Five Years of Defect Liability Period:
This is one of the most important benefits of the Rera Act Rules. This rule states that if any structural errors appear, the developer will have to bear the responsibilities and they have to rectify such errors for five limited years. So, if you find any error in the constructional quality and the property, you can hold the builder or the developer liable for the issue. You can ask them for repair or compensation.
- Carpet Area:
Most of the time, the property area is calculated in three different ways: built-up area, carpet area, and super built-up area. Hence, if you want to purchase real estate, this might put you in confusion.
However, as per the Rules of Rera, developers need to mandatorily disclose their apartment’s size based on carpet area that is the particular area within four walls. This includes all the usable spaces such as bathrooms or a kitchen.
If you are someone looking for a new home and would like to get to know more about real estate, then feel free to reach out to us at Vijayraj Residency, and our team of experts will be more than happy to share the details with you.