Know Your Benefits as a Buyer Under RERA


As Real Estate (Regulation & Development) Act, 2016 comes into effect; here is how the home buyers can benefit. The act not only makes the sector transparent but also gives certain advantages to the buyer. Sunil Tyagi, Senior Partner & Co-founder of ZEUS Law culls out a few important points from the act for the home buyer to understand:

  • Information about carpet area: Buyer will get to know the carpet area of the apartment/flat now.

 

  • No sale without registration: Promoter not to sell apartment / plot / building without the registration of the Project with the Authority.

 

  • Proper permissions and approvals: Registration will ensure that all permissions & approvals are in place before launch of the Project.

 

  • Information about other projects of Promoter: Promoter is required to provide its background details and history of all the past and ongoing projects and legal cases, which would be available on the website of the Authority.

 

  • Drafts of buyer documents available for review: Promoter is required to submit the Performa of buyer documents before registration of the Project.

 

  • No one sided ATS: Draft format of ATS has been prescribed under the rules and therefore it is not anymore a one sided agreement.

 

  • No Diversion of funds by Promoter: Separate bank account to be opened for every Project by the Promoter, and 70% of the amount received against that Project has to be deposited in that account, which can be utilized only for such Project. 

 

  • Expeditious Recovery: In case the Promoter does not pay compensation or refund, the Authority has the power to collect it as arrears on land revenue.

 

  • Restriction on collection of advance payment: Promoter is not allowed to take payment of more than 10 % of the cost of the apartment without entering into an ATS and duly registering it.

 

  • Consent from the buyers required: Promoter cannot change (i) sanctioned building / layout plans, (ii) specifications and / or (iii) assign its rights / liabilities in the Project, without obtaining consent of 2/3rd of the buyers in the Project.

 

  • Defect Liability Period: Promoter is liable for any structural defect or any other defect in workmanship, quality, or provision of services in the Project for a period of 5 years.

 

  • Similar Rate of Interest: Buyer would be entitled to same rate of interest as is charged by the Promoter.

 

Periodic Information: Buyer can access, from the website of Authority, quarterly updates regarding the Project.

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One thought on “Know Your Benefits as a Buyer Under RERA

  1. Hello Mr Sunil,Thank you for sharing the details of RERA Act 2016 in laymen's terminology. As I understood this law is applicable for the all the future projects.My question is can we people who have booked the apartments long back (in my case in 2009) and paid almost 90% of the amount (only the last installment is pending), how this law will benefit us?Regards