RERA-A Blessing in disguise for home buyers

RERA (Real Estate Regulatory Authority) is Real estate Regulation Act 2016 is an act of Parliament of India which has been formulated to protect the homebuyers and amplify Real Estate investment.
This act consists of 92 Sections. The act came into effect on May 1^st 2016 with 59 of 92 sections being notified and the remaining provisions of the act came to effect on May 1^st 2017.
The RERA act bill was initiated by Indian National Congress in the year 2013 which had 20 major amendments approved by the Union Cabinet by the recommendations of Rajya Sabha the bill was approved in the Upper house (Rajya Sabha) on March 10 2016 and by the lower house on March 15 2016.

Why RERA?

Property investment is an important and yet an emotional decision from a buyers perspective previously buyers have found that real estate transactions have largely favored developers which has had a significant impact on the buyers bank balance leaving them with a bitter experience, in order to make real estate purchase simpler, transparent and bring in accountability the central government introduced RERA read further to know how RERA protects buyers interest.

Here’s how RERA aids Buyers:

1.      To draw information pertaining to sanctioned building plans, layout plans and specifications which is approved by the competent authority.

2.      The buyer gets full has the right to information about Completion of project which includes provision of water supply, sanitation, electricity and other amenities.

3.      The buyer has the right to claim the possession of property.

4.      In case the seller/promoter fails to provide  possession of the property or building after payment has be done by the buyer, the buyer can claim refund along with the interest rate if prescribed and compensation provided under this act.

5.      Having necessary documents and plans after handing over the physical possession of property.

   Applicable penalties under RERA:

Applicable sections	Nature of offence	Penalties
Section 9(7)	Registration secured though misrepresentation or fraud           Breach of terms for which registration obtained	Revocation of Agent Registration Number
Section 62	Contravention of Section-9 & Section 10	Penalty of INR 10000/day during which default continues extending up to 5% of cost of unit sold
Section 65	Contravention of orders of RERA authorities	Penalty up to 5% of cost of unit sold
Section 66	Contravention of orders of appellate tribunal	Imprisonment up to 1 year or with fine extend up to 10% of cost of unit sold

Benefits of RERA from buyers perspective:

·         Protects buyer’s interest.

·         Quality products and timely delivery.

·         Safety and transparency of transaction.

·         Balanced agreements and treatment.

·         Sales are based on carpet area.

RERA in Karnataka

For Developers

1.      If any promoter contravenes the provisions of section 3, he will be liable to a penalty which may extend up to 10% of the estimated cost of the real estate project as determined by the Authority.

2.      If any promoter does not comply with the orders, decisions or directions issued under sub-section (1) or continues to violate the provisions of section 3, he will be punishable with imprisonment for a term which may extend up to three years or with fine which may extend up to a further 10% of the estimated cost of the real estate project, or with both.

For Agents

According to section 62 states, if any real estate agent fails to comply with or contravenes the provisions of section 9 or section 10, he will be liable to a penalty of Rs. 10,000 for every day during which such default continues, which may cumulatively extend up to 5% of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated as determined by the Authority.

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