The Real Estate Bill, which was passed in May this year, to provide transparency and accountability in the real estate sector. Its objective is to make the consumer acknowledge about the status of building approvals, to enable consumers to make accurate decisions. The bill also aims to take steps to promote affordable housing for everyone. Under the new RERA rules, all projects that are developed on 1000 sq m or more of land have to be registered with the proposed regulator.
Developer need to submit the details of the project like
- Title of Land.
- The completion date of the project.
- Names of the agents and architects that they are going to work with.
- Bank account details through which the financial dealings pertaining to the project are done.
- The amount collected via sale deeds should not be used for any other activities.
- Strict penalties will be enforced on developers for any offence committed.
Advantages of RERA for the buyers:
- Developers need to make timely delivery of the booked office spaces or homes. If not strict compensation and imprisonment can be taken against the developer.
- The same features promised at the time of registration need to be delivered at the time of handover. If not the builder can be penalized.
- Specifying the carpet area and not the built in area which is more than the former by at least 20 to 30% is mandatory.
- Completion of clearance from the government departments is compulsory before selling any house or office space.
- Separate bank account should be opened for each of the projects promoted by a developer.
- Buyer can approach the developer for any defect in the building within a year of handover and get it rectified free of charge.
Disadvantages of RERA:
- The rules and regulations passed in the new bill are not applicable for the ongoing projects or projects that are held up due to some clearance issues.
- Government agency delay in approval and clearance may hinder the timely delivery of products.
- Small developers with projects less than 1000 sq.m. do not come under the purview of this act and registration with the regulator is not mandatory for these.
- Without clearance projects cannot be launched and so launching of new projects may get delayed.
The advantages are heavier than the disadvantages and this is a good step to help the commoners get the delivery of his dream home on time and be able to buy them at reasonable prices.