{"id":11248,"date":"2020-03-17T09:44:38","date_gmt":"2020-03-17T09:44:38","guid":{"rendered":"https:\/\/www.cagmc.com\/?p=11248"},"modified":"2024-06-03T15:42:55","modified_gmt":"2024-06-03T10:12:55","slug":"changes-in-rera-act","status":"publish","type":"post","link":"https:\/\/www.cagmc.com\/blog\/changes-in-rera-act\/","title":{"rendered":"Changes in RERA act"},"content":{"rendered":"

\"\"<\/p>\n

From long back time India\u2019s real estate sector was unorganized, shattered and didn\u2019t had any formal institutional structure regardless of its size and a multibillion structure.<\/p>\n

The Ministry of Housing and Urban Affairs<\/a> has introduced several changes under the Real Estate Development and Regulatory Act with respect to in business carried out for real estate projects. Read through \u201cRemoval of difficulties\u201d, here are some of the cases of changed the scenario for buying and selling of the real estate properties:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
S. No.<\/strong><\/td>\nParticulars<\/strong><\/td>\nBefore RERA<\/strong><\/td>\nAfter RERA<\/strong><\/td>\n<\/tr>\n
1.<\/td>\nRegistration<\/td>\nDue to lacked institutional support and no formal structure many projects started to function without a valid registration, which ultimately affected buyer\u2019s security rights.<\/td>\nWith the introduction of RERA<\/a> it has made registration mandatory for every project in order to proceed with the construct or sell any flat or plot, making of advertisement for selling, getting in to any agreement or take any advance.<\/td>\n<\/tr>\n
2.<\/td>\nAdvertisement<\/td>\nBefore the Act came into existence, anytime the advertisements were published, and people were shown an empty plot and designs on the paper. They were promised that a project will be constructed over there, but often it was seen that, no project took place even after few years<\/td>\nRERA rules clearly ban any kind of false promise. If a rooftop swimming pool is promised, it has to be delivered, if an 8 ft\/3 ft balcony is promised, they cannot reduce it to 6ft\/2ft. Even if they have not mentioned in the agreement but has mentioned in the advertisement, they are liable to that.<\/td>\n<\/tr>\n
3.<\/td>\nTransferring Right<\/td>\nBefore the implementation of RERA Act, even if the project was transferred from one builder to another, the buyer was often not informed. If the buyer faced any issue, the previous owners refused to respond to it, stating the reason that the previous owners do not have any more responsibility towards the project. This harassed more the home buyers.<\/td>\nThe Real Estate Development and Regulatory Act made it compulsory that any project which is being transferred to any other person, it requires to get notified to the allottees, investors, buyer, and the authority. The name and the ownership will be changed on the documents. Everything must be done in the prescribed way. Until the total procedure is completed, the previous owner shall not be released from the responsibility.<\/td>\n<\/tr>\n
4.<\/td>\nTimely Possession<\/td>\nBefore the Act took the matter into its grip, there was no assurance when the property would be delivered to the buyer. Often it made delay of 10-15 years, which is really stressful matter for a common man. Many times, the project was not even started on the promised delivery day. The builders and sellers also used to get unresponsive to that problem.<\/td>\nThe Real Estate Development and Regulatory Act imposed certain rules regarding the delay in possession. If the possession is delayed for an unreasonable period, the buyer gets certain options like – alternate shelter till the project is completed, money back policy along with interest or alternate residence of same standard that has been promised by the builder. In the alternate residence, if any extra cost is required, the builder shall bear it.<\/td>\n<\/tr>\n
5.<\/td>\nQuality Material<\/td>\nWhen the sale deed of a property or a plot is prepared, it is necessary to write the quality of each essential materials those are to be used. Often it was seen that, the material used were of lower quality that has been promised, which resulted in earlier decay and damage to the products. When a person spending his hard earned money in projects, it is really a fraud happening on such person.<\/td>\nWhen the Real Estate Development and Regulatory Act were implemented, it became compulsory to use the promised product and if any issue appears, materials of similar quality are to be used. In case, worse quality products are used, the builder is liable to pay compensation on that ground. If anyone has suffered any loss due to usage of such material even later on, the victim can claim for compensation from the builders.<\/td>\n<\/tr>\n
6.<\/td>\nCarpet Area<\/td>\nPreviously, the builders used to play a trick game. They either used to mention \u2018area of xxx sq. ft.\u2019 or \u2018carpet area of approximately xxx sq ft.\u2019. Later on they used to defend that, there is a difference between total area and the carpet area or they never promised the exact carpet area. Such tricks are not easy to understand for a common person. This way, he often was not getting an area for which he has paid.<\/td>\nThe Real Estate Development and Regulatory Act made it compulsory to mention the exact carpet area or the reasonable variation of that. For example, now the builder has to mention \u2018carpet area of xxx sq. ft, more or less by yy sq.ft\u2019. If the flat is of lesser carpet area, the buyer shall pay only for the area he is under possession.<\/td>\n<\/tr>\n
7.<\/td>\nEssential Documents<\/td>\nBefore this Act came into existence, the buyers hardly used to get any essential documents other than the sale deed in their hand, which always kept them in ambiguity regarding the project.<\/td>\nAfter the Real Estate Development and Regulatory Act got implemented, all the builders are obliged to handover necessary documents related to the details of the project and the area or plot where the person is investing his money. The documents include – brochure, copy of registration, copy of the drawing of the flat and the project where he is investing.<\/td>\n<\/tr>\n
8.<\/td>\nBankruptcy<\/td>\nBankruptcy of the builders terrified the buyers in previous time. The builders often after taking money from the buyer, leaving the project incomplete, used to declare himself bankrupt. That used to safeguard him from any liabilities, and ultimately it is the common people who used to suffer an irreparable loss.<\/td>\nAs per the Real Estate Development and Regulatory Act, the builder has to open a separate account for the project under consideration. This account must be totally separate from the personal account of the builder or any of his relative\/friends. The builder has to deposit 70% of the total raised money in that separate account, which will be used only for the purpose of the project.<\/td>\n<\/tr>\n
9.<\/td>\nPost Possession Liabilities<\/td>\nBefore RERA was implemented, the builders used to go totally non-responsive towards any issue occurring to the project. The law prescribed that any damage occurring within 6 months of possession (legal\/physical whichever is earlier), due to the manufacturing fault, shall be taken care of by the builder.<\/td>\nThe Real Estate Development and Regulatory Act have extended the period till 3 years from the possession.<\/p>\n

Therefore, RERA has brought a drastic change not only in regulating the real estate laws, but also brought the buyer and the seller under tight observation.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

From long back time India\u2019s real estate sector was unorganized, shattered and didn\u2019t had any formal institutional structure regardless of […]<\/p>\n","protected":false},"author":2,"featured_media":15548,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nChanges in RERA act - Goyal Mangal & Company (CAGMC)<\/title>\n<meta name=\"description\" content=\"Step by Step Guide about Changes in RERA act. 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