In order to bring clarity and fair practices in Real Estate to secure the interests of buyers and also punish the errant builders, the Union government have notified the Real Estate (Regulation and Development) Act, 2016.
It will be an act to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plots, buildings, real estate projects in an efficient and transparent manner and to protect the interest of buyers in the real estate sector.
This is also an Act to establish an arbitrate mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto
Important Points of RERA 2016:
⇒This Act may be called the Real Estate (Regulation and Development) Act, 2016.
⇒It is applicable to the whole of India except the State of Jammu and Kashmir.
⇒Prior registration of real estate project as well as real estate agents with Real Estate Regulatory Authority: No builder/promoter shall advertise, book, sell or offer for sale, or invite anyone to buy any property without registering the real estate project with the Real Estate Regulatory Authority established under this Act.
⇒Obligations of promoter regarding veracity of the advertisement or prospectus: If one makes a deposit or an advance on the basis of the information provided in the advertisement or prospectus and sustains any loss or damage by reason of false statements, he shall be compensated by the promoter in the manner as provided under this Act.
⇒No advance or deposit to be taken by promoter without first entering into agreement for sale.: A promoter shall not accept a sum more than 10 % of the cost of the plot, or building as an advance payment or from a person without first entering into a written agreement for sale with such person and register the said agreement for sale, under any law for the time being in force.
The promoter firm has to maintain a separate account for each of their projects. A minimum 70% of the money from the buyers will have to be deposited. This money can only be used for the construction of the project.
⇒Commitment to the sanctioned plans and project specifications by the promoter: The proposed project shall be developed and completed by the promoter in accordance with the sanctioned plans, layout plans and specifications as approved by the competent authorities.
⇒Return of amount and compensation: If the promoter fails to complete or is unable to give possession of an apartment, plot or building,—
(a) in accordance with the terms of the agreement for sale or, as the case may be, duly completed by the date specified therein; or
(b) due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason.
RIGHTS AND DUTIES OF BUYERS:
⇒The buyer shall be entitled to obtain the information relating to sanctioned plans, layout plans along with the specifications.
⇒The buyer shall be entitled to know stage-wise time schedule of completion of the project, including the provisions for water, sanitation, electricity and other amenities and services.
⇒The buyer shall be entitled to claim the refund of amount paid along with interest from the promoter, if the promoter fails to comply or is unable to give possession of the apartment, plot or building.
⇒The buyer shall be entitled to have the necessary documents and plans, including that of common areas, after handing over the physical possession of the apartment or plot or building by the promoter.
⇒Every buyer, who has entered into an agreement for sale to take an apartment, plot or building shall be responsible to make necessary payments of the share of the registration charges, municipal taxes, maintenance charges, and other charges, if any.
⇒The buyer shall be liable to pay interest for any delay in payment towards any amount or charges to be paid under sub-section
⇒Every buyer of the apartment, plot or building shall participate towards the formation of an association or society or cooperative society of the buyer, or a federation of the same.
Every buyer shall take physical possession of the apartment, plot or building within a period of two months of the occupancy certificate issued for the said apartment, plot or building,