Real estate disputes are unavoidable by nature, and the buyer is the one who suffers the most. To alleviate such obstacles and improve the solution in its decision last month, the Supreme Court advised several modifications to the Real Estate Regulatory Authority Act (RERA). The Supreme Court held that the requirements of the Real Estate (Regulation and Development) Act, 2016 (RERA) apply to ongoing projects for which completion certificates had not been received at the time of the bill’s enactment, thus interpreting the law as retroactive. The court further ruled that the money invested by the allottees, plus interest calculated by the regulatory authority or adjudicating officer, can be recovered from the builders as arrears of land revenue.
Before challenging any RERA ruling in the High Court, developers must deposit at least 30% of the penalty imposed by the regulator, according to the Supreme Court. Previously, house buyers had to wait for a resolution due to extensive legal procedures and the ability to appeal against orders. The decision promotes homebuyers’ interests, preserves their rights, and directs developers to follow RERA regulations.
The judgement, aimed at safeguarding purchasers, provides significant relief to buyers, expedites the resolution process, and makes it harder for state governments to compromise the meaning of the law. Before the law, the real estate and housing sectors were mostly unregulated, consumers were unable to hold builders and developers accountable.
Benefits of RERA for Homebuyers
1. Enhanced transparency
Easy access to information will boost housing demand in projects by known developers while eliminating dishonest fly-by-night operators, resulting in a more organised market.
2. Fair pricing and refund policy
The regulation requires developers to charge exclusively based on carpet area. This ensures that consumers only pay for what they buy, which is intended to lessen the overall financial burden. Furthermore, RERA states that if a buyer decides to cancel the booking, the developer must repay the cash, plus interest, within 45 days. This clause protects buyers from excessive delays in the refunding process.
3. Grievances will be addressed and resolved promptly
If the buyer is dissatisfied with the construction or has a problem with the apartment, he or she has the right to file a complaint with the Appellate Tribunal under the RERA statute. The tribunal will consider your case after 60 days of receiving the Grievance case file.
4. Less delay in projects
As a result of the RERA act, each property developer is required to provide a due date for the possession of the unit. And if the developer is unable to complete the project by that date, they will suffer a slew of fines.
5. Responsibility in case of defaults and defects
Under this RERA Act provision, if a buyer discovers any defect or problem in the construction, quality, or provision of the apartment within 5 years of possession, the builder will rectify the defect within 30 days at no additional cost.
6. Advance Payment
Before engaging in a sale agreement, the builder may accept only up to 10% of the cost of the apartment, villa, etc. as an advance or application fee.
What Impact does RERA have on the Builder?
- If the builder makes a false promise, he is obligated to reimburse the full amount to the buyer.
- The builder can no longer take more than 10% of the cost of the property in which the buyer is investing.
- If there is a delay in possession, the buyer has the choice of withdrawing and receiving a complete refund or continuing with the amount of compensation obtained, depending on the buyer’s situation.
- Any dispute against the function Object can be brought to the state authority established under the Act to be resolved.
- In the event of a buyer default in payment or a builder default in project completion, the rate of interest to be paid shall be both for the same. It brings the buyer and seller together on the same platform.
- The Act is expected to increase housing demand in the country and, as a result, hasten the absorption of unsold housing units. Developers will be the first to benefit from the newfound trust in the industry.
What Impact does RERA have upon States?
Many states that weakened RERA provisions may now be required to revise their regulations. RERA has been adopted in 16 states, and it has been successfully implemented in seven union territories. So far, 34 states/union territories have notified RERA rules, and Nagaland is in the process of implementing them.
Four states – Gujarat, Maharashtra, Madhya Pradesh, and Punjab – have formed permanent Real Estate Regulatory Authorities, while 19 states/UTs have constituted interim authorities’ experts, according to a Housing and Urban Affairs Ministry authority.
Finally, make sure that the project you purchase has been registered with a regulatory organisation! We, at OMG Properties, always prioritize the wellbeing of our customers and encourage transparency, responsibility, and discipline in upholding our promises. All of the OMG Properties are registered under RERA. With the RERA Act on your side, now is the perfect time to begin your journey to owning your dream home.
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