10 RERA rules every buyer should be aware of-As a homebuyer in today’s market, it’s essential to stay informed and protected when making such a significant investment. The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, was established to safeguard homebuyers’ interests and enhance transparency in real estate transactions. At LegalEye Firm, we understand the importance of being well-versed in the rules set forth by RERA law. Here are 10 key RERA rules every buyer should be aware of:
10 RERA Rules Every Buyer Should Know
Project Registration: All real estate projects, including ongoing ones, must be registered with the respective state RERA before any advertising, booking, or sales begin. Buyers can verify the registration details of a project on the state RERA website.
Disclosure of Project Details: Developers are required to provide comprehensive information about the project, including land title, sanctioned plans, and financial statements. This allows buyers to make informed decisions based on transparent data.
Escrow Accounts: Developers must maintain separate escrow accounts for each project and deposit 70% of the collected funds into the account. These funds should only be used for the specific project to ensure timely completion.
Construction Timelines: Developers must adhere to the timelines specified in the project agreement. If the completion is delayed, buyers are entitled to compensation as per the terms of the agreement.
Carpet Area Definition: RERA has standardized the definition of carpet area, which refers to the net usable floor area within the apartment. This prevents developers from misleading buyers with inflated area measurements.
Agreement for Sale: RERA mandates a standardized Agreement for Sale between buyers and developers, outlining the project’s specifications, timelines, and the buyer’s obligations.
Compensation for Delays: If a project is delayed beyond the agreed timeline, buyers have the right to claim interest on their investment or withdraw from the project and receive a full refund along with compensation.
Grievance Redressal Mechanism: Buyers can approach the RERA authority to resolve disputes with developers. This quick and efficient process ensures that buyers receive justice without prolonged legal battles.
Promoter’s Liabilities: Developers are responsible for fixing structural defects or quality issues within five years of handing over possession to the buyer. Any issues reported within this period must be addressed within 30 days.
Transparency and Accountability: RERA enforces stringent transparency and accountability measures on developers. This includes disclosing ongoing litigation, encumbrances, and delays, ensuring buyers have all the necessary information.
10 RERA rules every buyer should be aware of-At LegalEye Firm, our civil lawyers specialize in real estate matters, and we’re here to guide you through the complexities of RERA law. Whether you’re buying a new home or navigating a dispute with a developer, our experienced team can provide you with the legal expertise you need to protect your interests.
