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Business News/ Money / Personal Finance/  Planning to buy flat? RERA guidelines that your properties must adhere to
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Planning to buy flat? RERA guidelines that your properties must adhere to

Planning to buy a flat? RERA guidelines that your properties must adhere to — explained

Ultimately, the RERA guidelines will benefit both developers and buyers. (iStock)Premium
Ultimately, the RERA guidelines will benefit both developers and buyers. (iStock)

The Real Estate (Regulation and Development) Act, 2016 (RERA), is a game-changer for the Indian real estate industry. The introduction of RERA guidelines has been a game-changer for the Indian real estate sector. The aim of these guidelines is to promote transparency, accountability, and efficiency in the real estate industry. Property developers need to comply with a range of norms that cover project registration, documentation, pricing, and quality standards.

Suren Goyal, Partner, RPS Group, said, “ In practical terms, this means that developers will have to maintain a high level of transparency in project dealings and pricing, provide a detailed project plan with timelines, and ensure compliance with quality standards at every stage of the project."

According to Anurag Goel, Director, Goel Ganga Developments, "Developers will need to ensure that their projects are registered with the appropriate regulatory authority, and that all necessary approvals and clearances have been obtained before launching the project. Further, developers will need to maintain accurate and up-to-date documentation, including project timelines, construction schedules, and financial details."

To adhere to RERA guidelines, developers need to maintain a high level of transparency in project dealings and pricing. “They need to provide a detailed project plan with timelines and ensure compliance with quality standards at every stage of the project. This includes obtaining all necessary approvals and clearances before launching the project," said  Mrinaal Mittal, Director, Blackteak Realty

Saurabh Tyagi, CEO, and Co-founder, PropChk explained the  RERA guidelines that your properties must adhere to

1)The building/project should be registered with the State RERA. Every State RERA has an online portal accessible to the general public. One can easily check if the Building/Project is registered with RERA or not by putting in either its unique RERA Registration No. or by searching for it through the name.

2)If the project is under construction, the buyer should ask for the details of the Escrow Account in which the developer is obligated to keep 70% of the money received from customers. 

3)RERA only recognises the carpet area i.e. the area within the four walls of the residential unit. While evaluating a property, its carpet area should always be measured before concluding the transaction. The carpet area should be as per what was committed by the developer in the sale agreement.

4) Every property buyer should bear in mind is Clause 14 (3) of the RERA Act of 2016. It goes as follows: “In case any structural defect or any other defect in workmanship, quality or provision of services or any other obligations of the promoter as per the agreement for sale relating to such development is brought to the notice of the promoter within a period of five years by the allottee from the date of handing over possession, it shall be the duty of the promoter to rectify such defects without further charge, within thirty days, and in the event of promoter’s failure to rectify such defects within such time, the aggrieved allottees shall be entitled to receive appropriate compensation in the manner as provided under this Act."

5)Although the above clause protects the buyer’s interest, there is a grey area. If the defect found is due to the negligence of the customer or due to wear and tear, then the builder is not liable to repair such defects. Therefore, it is strongly recommended that a thorough inspection be conducted before accepting possession of the property. Keep the inspection report in the record by emailing the same to the builder.

Ultimately, the RERA guidelines will benefit both developers and buyers. It will ensure a level playing field for all stakeholders in the real estate ecosystem, leading to a more efficient and transparent real estate market in India. Compliance with RERA guidelines will also help developers win the trust and confidence of buyers, which is crucial in today's highly competitive market.

 

 

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ABOUT THE AUTHOR
Sangeeta Ojha
A business media enthusiast. Writes on personal finance, business and banking.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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Published: 08 May 2023, 01:23 PM IST
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