Delay Compensation In RERA.
To protect the people who buy home and to boost investments in real estate industry , Real Estate ( Regulation and Development ) Act , 2016 was enacted.
This act provided for the establishment of real estate regulatory authority ( RERA) in each state.
RERA will see all the real estate sectors and will also try to dispose cases which are related to buying of home or apartment as RERA is a speedy dispute redressal body.
This Act states that:
- All projects in which there are eight apartments or land is over 500 square metre such projects have to be registered to real estate regulatory authority.
- Within three months completion certificate must be taken for the project.
- RERA within thirty days will approve or reject the application of the project.
- If application is approved the applicant will have to fill the details of the project on the website of RERA with the help of registration number, log in ID and password given to him/her.
- If registration is not done three years imprisonment or penalty of ten percent of project cost can be imposed on the person.
RERA try to protect the buyers .
Now builders have to give price details according to carpet size.
Also in States , Real Estate Regulatory Authorities will see both residential as well as commercial projects that they are completed in time and the buyer gets the possession of it in time.
Now regulatory authorities have to dispose off thecases within 60 days of their filling.
RERA In States.
State Governments have to make rules for RERA and have to set regulatory authorities in their respective states.
Central Government rules are applicable only to five Union Territories which are Andaman and Nicobar islands, Dadra and Nagar Haveli , Daman and Dui , Lakshadweep and Chandigarh.
Thus each State have to make and notify their own rules.
Like The State of Haryana , is a developing State. It is developing rapidly in all fields .
Thus in the field of real estate The Government of Haryana in order to have the growth of real estate sector and to ensure rights to the persons who buy apartments have set two real estate regulatory authorities one for Gurugram district and other for the State of Haryana.
Delay Compensation In RERA.
Delay in giving the possession of house to the buyer is the biggest concern.
Now with RERA certain guarantee is given to buyer with following facts:
- Written affidavit is to be given by promoter stating the date when project will be finished.
- Possession date must be specified and rate of interest should also be specified for delay.
Rate Of Interest is decided by the States and they have to notify that.
- Clearly the area and title of land must be mentioned in the affidavit.
- Land should be free from any claim.
- Now according to RERA the money which is taken from the buyer out of it 70 % of the money should be deposited in a bank and according to the work only it can be withdrawn .
- If the buyer does not follow the rules
He can be punished with imprisonment for a term not exceeding three years and with a fine which may extend to ten percent of the cost of the project or both.
Some States do not give imprisonment but give only compensation to the buyer in case of delay.
For more info , please dial 7888-356908