“We have been discussing about some regulation in real estate for the last 11 years because all the buyers across the country are not getting adequate redressal system as per the previous arrangement,” said Minister of Urban Development and Housing, Venkaiah Naidu initiating the debate on the Real Estate (Regulation and Development) Bill, 2016 in the Lok Sabha, in May 2016.
One year later, the Act – popularly known as Real Estate (Regulation and Development) RERA – has finally come into effect, and experts say it will help consumers breathe easy and bring back confidence in the sector. It is also expected to ensure timely completion of the project.
“The biggest concern that a homebuyer always had was delay in getting possession, which will now be taken care of,” he added.
Will a Buyer Also Pay for Super Built-up Area?
The prevalent practice of builders charging on super built-up area, including the terrace and common spaces, will also have to stop, with the law making it clear that prices have to be based only on the carpet area of the apartment
Will the Builders Deliver as Promised?
Builders are also barred from changing the development plan mid-way through a project, without the consent of the homebuyers. In other words, amenities promised by the builder at the time of sale have to be ready at the time of possession.
Penalty for Delaying Payments, Projects?
The most important safeguard according to Gulam Zia is the new rule of agreement, which lays down clear guidelines for any change in the delivery timeline. Earlier, in case a buyer defaulted on an instalment, the penalty was at least 24 percent, whereas the developer payed hardly 8-9 percent interest if there was a delay