10 Important Facts About RERA Every Home Buyer Should Know!

  • Compensation Payment

    With RERA in force, the developers will now have to pay compensation or refund equal to the amount at State Bank of India’s highest marginal cost of lending rates plus 2% in addition within one and a half months in case of project delay. This interest rate is expected to be around 11 to 12 percent.

  • Money Deposit

    It will be mandatory for the developers to deposit 70 percent of the money collected and which has not been used within 90 days of applying for project registration with the Real Estate Regulatory Authority. The money needs to be deposited in a separate account for the purpose of ongoing projects completion.

  • Punishment

    If the rules of RERA are flouted or violated, there is a provision of compounding of punishment and imprisonment with up to 10% of project cost as the penalty in case of a builder and 10% of the cost of property purchased in case of allottees and agents.

  • Sale of Properties

    Any discrimination in the sale of property on any ground shall not be accepted under new rules, Real Estate authority and Appellate Tribunals will have to dispose of such cases within 60 days.

  • Certification

    If the developers fail to obtain completion certificates for the ongoing projects in the specified time, the originally sanctioned plans will have to be made public by the developer and any changes that were made at a later date. They will also have to inform and declare the amount collected from the buyers, the amount that has been used so far, original completion timeline, etc.

  • Carpet Area

    The apartment size also needs to be declared by carpet area by the developer even if earlier it was sold on a different scheme earlier.

     

  • Registration

    For project registrations with the authority, the real estate developers will be required to submit authentic copies of the annual report that entails audited profit and loss statement, PAN Card, cash flow statement, balance sheet, and auditors report for three preceding years.

     

  • Income Tax Returns

    Income Tax Returns disclosure that was earlier proposed in RERA has been withdrawn so as to ensure and maintain confidentiality.

     

  • Registration Fee

    Project registration and Real Estate Agents registration cost have been halved to incentivize the registration by promoters and agents.

     

  • Detailed Information

    To assist buyers with informed decisions, the authorities will publish the information such as track record of promoters, advertisement and prospectus of the project, details of apartment and plots on their website.