A look at what the Real Estate Regulation Act has in store for the sector and why Tamil Nadu needs to gear up
The Real Estate (Regulation and Development) Act, 2016 brings about transparency and a slew of benefits to the buyers and developers. It also gives the sector its Regulator sites in sarjapura towards bagalur road
Here’s a look at the Act and reasons behind Tamil Nadu failing to notify rules within the April 28 deadline:
83,000 Registered builders will come under the purview of RERA, leading to improved governance as well as answerability, thus triggering investments from FIIs and domestic institutions villa plots for sale in sarjapura road
The Act mandatorily requires the declaration of projects, particulars of promoter, project and land status, clearances and approvals, timely delivery of projects will enable assessment of credibility of developers.
Declaration under RERA will lead to transparency in pricing, quicker redress, better answerability from developers and brokers, thus ensuring the utilization of buyer’s money for the same project, provision of relevant details, approvals prior to commencement of project etc. RERA will also lay down timelines for the builders along with detailed cost budgets which will be the final cost for the customer.
Buyers and developers will be penalized alike for delays in payments and project completion, respectively. As per the Act’s mandate, 70% of the project cost will need to be deposited in a separate bank account to ensure availability of liquidity for project activities. This will ensure that projects are completed on time and safeguard buyer’s funds from getting diverted in case of any project delays.
Developers and promoters will be required to desist from advertising, booking or selling any part of a project exceeding 500 aq. Mts. And more than eight apartments, without registering the project with the Authority established under RERA upcoming ventures in sarjapura
If there is a delay on the part of the developer, he is to pay the buyer the same interest as the EMI being paid to his/her bank.
Developers are liable to pay for any structural defects for up to five years after completion. The promoter is also required to provide additional details regarding the area on the basis of which apartment is to be sold, interest to be paid in case of delay, method of utilization of amounts received from the customers, warranty period and post delivery compliance sites in sarjpura road