Launched on 1st May, “Real Estate (Regulation and Development) Act, 2016 has proved to be profitable for the home buyers. With strict regulations and rules.
Real Estate (Regulation and Development) Act came into effect from 1st May 2016. We bring you major reforms mentioned in the act which brought benefits for home buyers:
- ‘State Real Estate Regulatory Authority’ will be established in every state for managing dissatisfaction issues against builders.
- Builders can quote prices depending on ‘carpet area’ and not ‘super built-up area’. According the act, usable spaces like kitchen and toilets are included under the Carpet area.
- The developer will submit 70% of the project funds to the bank through cheque, so that he cannot invest in more than one project at a time and can’t delay in completion and handovers.
- It is mandatory for developers to provide information regarding project plan, layout, government approval, land title status, sub contractors in the project and schedule date for completion to the “State Real Estate Regulatory Authority (RERA)” and the home buyers.
- Delay in project completion makes the developer responsible to pay the consumer, same interest amount as the EMI value paid by the consumer.
- Home buyer can ask developer to provide his post sales services, in case any lack in the project is found till 1 year of taking possession of the property.
- Developer cannot amend the plan which had already been sold without the consent of the buyer.
- For developer who violates the order of the RERA, a jail term of 3 years will be issued.
For more updates on latest laws and regulations contact our experts at multiflats.com – Where stress is divided and your happiness is multiplied!