Every day there is a new law unfolds. Post implementation of the Real Estate (Regulation and Development) Act, 2016 homebuyers still are in transition mode. RERA has made lives of builders, realtors, co-promoters hard-won with its law bounds. RERA aims to protect homebuyers’ rights. Complete implementation of RERA is likely to bring back accountability and transparency in the sale of real estate items. The act aims at speedy deliverance of real estate possessions within scheduled time period.
While it’s time for rejoice to the homebuyers, thereupon they should know along with the promoters and realtors, there are certain obligations and duties levied on the allottees too.
For the promoters the strict RERA rule is within July 31st all the selling phases are required to be registered prior to any advertisement, marketing or other promotional purpose. Pre-launch booking process might get invalidate after complete RERA execution. Hence, registration with RA (Regulative Authority) requires prior to approval of the project lay outs and floor plans.
Important facts about RERA 20:80 and other similar scheme
Builders used to undertake the obligation to pay interest dealing with the complete disbursement under the home loan up to the house/flat possession date. According to the terms of the scheme home loan lenders used to make the entire disbursement starting from the day of advanced booking and developers used to circulate the money to reimburse their existing debt in the project or some other purpose. Now builders need to maintain 70% of the receivable amount to an escrow account and the withdrawal has to be used for the same project development purpose. This very law affects the builders who are largely dependent on such advance booking amount for land purchase or project development.
On the other hand, advertisement, promotion and booking of the projects can only be performed after getting registered with RERA. In accordance with the AQ 13 on MAHARERA website and the provisions of Section 4 of the RERA Act, the registration may be done after assured approvals in relation to the project have been acquired and the same are required to be put forward for registration of project with RERA. Initially prelaunch advertisement didn’t require any prior approval. FAQs seek clarity of the provision under of Section 3 read with Section 4.
Promoters are asked to submit their previous track records of last 5 projects in relation to the proposed one while the time of project registration. All the people related to project development architects, contractors, engineers and others have to accordingly open their backgrounds before the authority. “This is the best way to ensure the quality and authenticity of the proposed construction as promoters need to mention every single details of the project while uploading with RERA official websites and potential consumers who want to buy property in Kolkata should keep themselves updated with the changing market patterns to avail a higher security” said Mr. Mahesh Somani
, West Bengal RERA expert.
For the formation of a society and transportation facility inside proposed project promoters need to apply within 3 months counting the booking month with the occupancy of minimum 51% allottees.
Promoters can never ask for extra money while project development after the booking amount collection. All the construction cost until occupancy will be borne from the escrow account. Again a promoter just can’t abruptly change his plans without prior consent of the allottees. The act seeks to address this through requirement of the title search during registration and also through requirement of title and construction insurance for every project.
A real estate agent will have to ensure registration/disclosure though a double step process (a) as a real estate agent with the RERA authority in the concerned state, and (b) disclosure of the real estate agent by the promoter in respect of a project. They have to display their registration certificate with RA in their offices and even for the advertisement of the project sales. Malpractice of the realtors is also subject to penalization under RERA.
RERA authority holds the maximum power to cancel registration of promoters who violate the norms. Consumers have rights to cancel their booking and ask for refund of the money paid including interest. Promoter is bound to return the same. At same point an allottee should also make payments timely, else they will also have to pay the interest as well.
For car parking areas, promoters can allot covered car parking areas to the consumers during the time of sale, but when it comes to open parking area the society association has to be knocked for the counsel as it’s about the allotment of common areas. Consumers should check and cross check all the required details before coming to any agreement with the construction companies and real estate agents.
-Somani Realtors News Network