FINALLY, A BUYER’S MARKET
RERA has built-in safeguards to protect the interests of buyers
1
Timely delivery In case of delays, buyers can cancel their bookings (developer refunds the amount with interest) or be paid interest for every month of delay until the property is ready for possession
2
RERA registration Developers can sell projects only if they are registered with the state regulatory authority and have registration numbers. Details of projects need to be put on RERA portal
3
Payments secured Developers to deposit at least 70 per cent of the buyers’ money for a project into an escrow account. This prevents them from rolling these funds into other projects
4
Verify track
record Buyers can opt to buy properties only from reputed developers who are complying with RERA, have a good track record and are financially stable. All this is now verifiable
5
Transparent ads: A project can be promoted only after it is registered with RERA. All ads and promotional material must mention the RERA registration number that is unique to a project
6
Clarity on carpet
area Homebuyers can no longer be charged for ‘super built-up area’. The quoted price must be based on the carpet area. Now, what you see is what you get (and buy)
7
Changes in project plans: Around 2/3rd of the buyers’ consent is necessary for a developer to make modifications to a project (building or layout plans/ specifications/ liabilities)
8
Structural defects addressed In the first five years after giving possession, developers are liable to rectify defects in the property in less than 30 days or pay compensation to the buyer
9
Booking amount
fixed Developers can only accept 10 per cent of the total property cost as booking amount. Violators of the norm face imprisonment of up to three years
10
Strong redress
mechanism Complaints of homebuyers will mandatorily be resolved within 60 days. Developers and brokers face penalty for breach of obligations