Ragini Das

April 10, 2019 at 8:21 am #1049

Keymaster

The following points will tell us about the effect of RERA on buyers and builders:

All the ongoing and the upcoming real estate projects needs to be registered with RERA now, which needs to be done by the real estate developers/promoters on an urgent basis.
Now, home buyers will have to pay only for carpet area.
Developers/promoters can’t hide any project related details now. It means they need to disclose all the details such as project plan, layout, and government approvals related information to the customers such as sanctioned floor space index (FSI), number of buildings and wings, etc.
70% of the money received from buyers (for particular project) needs to be transferred to an escrow account by the developers/promoters. These funds should be used only to cover the cost of construction and land cost.
Before advertising or marketing, developers have to register their projects with RERA.
In case of non-compliance with the Act, RERA 2016 recommends imprisonment for a term which may extend up to three years, or fine which may extend up to 10% of the estimated cost of the real estate project, or both.
Developer/promoter providing false information or contravening the provisions of registration of real estate projects has to pay penalty up to 5% of the estimated cost of the project.
Developers/promoters have to update project details quarterly on the RERA website.