Rera Stories

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Introduction: Real Estate as a general term describes the built environment, which plays a vital role in every aspect of an economy, society, and environment, the common man who invested his lifelong savings in buying a property. To protect and safeguard the interests of the home buyers and to ensure that they are not exploited by the developers/builders. RERA: RERA stands for Real Estate Regulatory Authority, the bill of this parliament of India act was passed on 10th March 2016 by Rajya sabha was effective from 1st May 2016. Under the RERA act, a minimum of 70% of the buyers and investor's money will be kept in a separate account. This money will then be allocated to the builders only for construction and land-related cost. Developers and builders cannot ask for more than 10% of the property's cost as an advance payment before the sale agreement is signed. Builders are supposed to submit the original documents for all projects they undertake and not supposed to make any changes to the plans without the consent of the buyer. The builder must rectify any issue faced by the buyer with 5 years of purchase, this issue must be rectified within 30days of the complaint. Standardized Carpet Area: The Builder would calculate the carpet area as 1500SFT and the other would calculate the carpet area of 1400SFT. RERA emphasizes on timely completion of projects. Any delay means that the developer has to pay the buyer interest of 2% over SBI's MCLR for the period of delay. The developer has to resolve disputes with buyers within 120 days of it being filed. The rate of interest to be paid shall be the same for both parties. The buyer has the option to withdraw from the project wherein he is entitled to a full refund of the amount paid as advance or otherwise along with interest and claim compensation.

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