The move made by the government to implement the Regulation of Real Estate and Development Act (RERA Act) was well-planned, after it received hordes of complaints against dishonest and unethical realtors. Most of the small-time realty developers defaulted on many of their promises, which often resulted in outright cheating of the customers. The RERA Act was put into effect on May 1, 2017. It laid down really helpful laws that stop the bad apples in the real estate industry from exploiting the customers. Arun Dev Builders discusses five positive effects that the RERA Act will have on home buyers and real estate developers who carry out their operations ethically.
- Real estate developers will now have to put up information about their organization online and in full view of the public at the RERA site. They will be required to furnish details about their projects, company profile, financial performance, legal cases, and customer testimonials. Convenient for the buyers, don’t you think?
- The cost of apartments and homes will now be calculated on carpet area instead of built-up area. It’ll reduce the overhead charges considerably.
- Developers will be penalized heavily if they change the building plans in the middle of the project. The ‘bad apples’ often do that to avoid constructing costly amenities that the buyers were promised.
- According to experts from Arun Dev Builders LTD, projects have to be registered with RERA before they’re commenced. Real estate agents who deal in plots and apartments fall under this rule as well. Projects that are greater than 500 square meter or have more than eight apartments, are subjected to registration.
- Delay in the delivery of homes by the real estate developers is a punishable offence. According to experts at Arun Dev Builders, this will invite a jail-time for the developers that can extend up to 3 years. Developers will also be liable to pay 10.9% interest if they make the transfer late.
Also Read Top 5 Indian Real Estate Laws You Should Know .