RERA

When purchasing or investing in property under the Real Estate (Regulation and Development) Act (RERA), there are specific guidelines and tips to follow to ensure compliance and safeguard your investment. Here are the key points to consider:-

1. Check RERA Registration: Ensure the project and the developer are registered with RERA. Each project should have a unique RERA registration number. Verify the registration details on the respective state’s RERA website.
2. Access Project Details: Review the project details available on the RERA website, including the layout, sanctioned plans, project timeline, and completion status. Check for any complaints or legal issues associated with the project or developer.
3. Transparency and Disclosure: Developers must provide all relevant information, including project plans, government approvals, and land titles. Ensure that the builder has disclosed details about carpet area, common area, and built-up area clearly.
4. Timely Delivery: RERA mandates developers to complete projects within the stipulated time frame mentioned at the time of registration. Developers must pay compensation for delays unless the delay is caused by conditions beyond their control.
5. Standardized Carpet Area: RERA standardizes the definition of carpet area, which helps buyers understand the actual usable area of the property. Verify the carpet area mentioned by the developer to avoid discrepancies.
6. Escrow Account: Developers must deposit 70% of the project funds collected from buyers into a separate escrow account. This ensures that the funds are used exclusively for the construction and land costs of the project.
7. Builder’s Liability: Builders are responsible for fixing any structural defects or poor workmanship issues for up to five years after possession. Ensure this liability clause is included in the sale agreement.
8. Grievance Redressal: RERA provides a mechanism for buyers to file complaints against developers for any grievances. Understand the process of filing complaints and the timelines for resolution provided by RERA.
9. Clear Agreement Terms: The sale agreement should be transparent and include all terms and conditions, project specifications, and timelines. Verify that the agreement does not have any hidden clauses that could be detrimental to your interests.
10. Verify Approvals and Sanctions: Ensure the project has all necessary approvals and sanctions from local authorities. Check for environmental clearances, land use permissions, and other regulatory approvals.
11. Project Updates: Developers are required to provide regular updates on project progress on the RERA website. Keep track of these updates to stay informed about the construction status.
12. Penalty for Non-Compliance: RERA imposes penalties on developers for non-compliance with the regulations. Be aware of your rights and the penalties applicable to developers for delays, false advertising, or other breaches. By adhering to these guidelines, homebuyers can ensure a safer and more transparent property purchasing process under RERA. This act aims to protect buyers’ interests and promote fair practices in the real estate sector.

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