Making sharing of information mandatory
The Rera Act makes it compulsory on the part of the builder and state authority to share full information with the home buyer and general public regarding builder and realty projects
CHANDIGARH: The enactment of the Real Estate (Regulation and Development) Act and the state rules made thereunder has the potential to bring in the muchneeded transparency to the real estate sector.
So far, not all states, including Punjab and Haryana, have functional Rera websites. But the state authorities are mandated under the act to provide information to the buyer through a website.
INFORMATION FROM THE BUILDER
At the time of advertise
ment/booking: In an advertisement, a builder cannot provide false information about the project to the prospective buyer. If it does so, it will be liable for penalty, which may include both fine and imprisonment.
Similarly, under the Section 3 of the Rera Act, at the time of the booking, of a property with a builder in a project, a home buyer has the right to be provided information regarding sanctioned plans, layout plans, along with specifications, approved by the competent authority, the stage-wise time schedule of completion of the project, including provisions for civic infrastructure like water, sanitation and electricity.
If the information provided at the time of the booking of a property is misleading, incorrect, false and leads to loss or damage, then the buyer has to be compensated by the builder as per the act and the rules made thereunder, stipulates Section 12 of the Act.
If such a buyer intends to withdraw from the proposed project, it shall be returned his entire investment along with interest at such rate as may be prescribed and the compensation in the manner provided under act and state Rera rules. At any other stage: The home buyer is entitled to obtain information relating to sanctioned plans, layout plans along with the specifications, approved by the competent authority and such other information as provided in this act or the rules and regulations made or the agreement for sale signed with the promoter, as per the Section 19 of the Act. The buyer is also entitled to know stagewise time schedule of completion of the project, including provisions for water, sanitation, electricity and other amenities as agreed in accordance with the terms and conditions of the agreement for sale.
INFORMATION FROM THE AUTHORITY
The state real estate regulatory authority is also responsible to the home buyer for providing detailed information regarding different aspects of the project and the builder.
It must publish and maintain a website of records, for public viewing, of all real estate projects for which registration has been given, with such details as may be prescribed, including information provided in the application for which registration has been granted. It has to maintain a database, on its website, for public viewing, and enter the names and photographs of promoters as defaulters, including project details, registration for which has been revoked or have been penalised under the Act, with reasons therefor, for access to the general public.
Further it has to maintain a database on its website for public viewing and enter the names and photographs of real estate agents who have applied and registered under the act, with such details as may be prescribed, including those whose registration has been rejected or revoked.
If any builder provides false information or contravenes the provisions of section 4, it is be liable to a penalty, which may extend up to 5% of the estimated cost of the real estate project, as determined by the authority.
Every state authority has to set up a website and provide a webpage to a project. The buyer in particular and public in general have the full right to access the site and access all the information on the site regarding builders and projects. Buyers can access information regarding builder’s enterprise, details of the projects launched by him, in the past five years, whether already completed or being developed, as the case may be, including the current status of the said projects, any delay in its completion, details of cases pending, details of type of land and payments pending.
A buyer can also check with the authority and its website the authenticated copy of the approvals and commencement certificate from the competent authority submitted by a builder. He can also verify with the authority on its website, the sanctioned plan, layout plan and specifications of the proposed project or the phase thereof, and the whole project as sanctioned by the competent authority.
The buyer can also access information regarding the plan of development works to be exe- cuted in the proposed project and the proposed facilities to be provided thereof including fire fighting facilities, drinking water facilities, emergency evacuation services, use of renewable energy on the authority’s website.
The location details of the project, with clear demarcation of land dedicated for the project along with its boundaries including the latitude and longitude of the end points of the project are also to be provided by the builder to the authority and must be shared with the buyer.
The buyer has the right to access information regarding the number, type and the carpet area of apartments for sale in the project along with the area of the exclusive balcony or verandah areas and the exclusive open terrace areas apartment with the apartment, if any.
Information regarding other stakeholders in the project like real estate agents, contractors, architect, structural engineer, and other persons concerned with the development of the proposed project also must be shared with the buyer and general public through the state Rera website.
In an advertisement, a builder cannot provide false information about the project to the prospective buyer. If it does so, it will be liable for penalty.