The introduction of the RERA act is definitely a boon to both the developers as well as the customers in a number of ways. It will not only bring in transparency and clarity but ensure better security as well. If you are planning to book your home in and around the Noida Extension, you must be familiar with the important aspects associated with RERA so that you can make the most out of your investments.
10 Things That You Should Know About RERA are:-
- Ongoing Projects Also Come Under RERA
The ongoing projects which are under construction will also come under this act and the developers will have to pay 70% of the total amount received from the customers into a different bank account within the period of three months starting from the date when the project was registered. All the developers need to comply with this rule and deposit the money within the mentioned time deadline.
- Equal Penalty
Earlier the developers did not pay any refund in case the project got delayed but with RERA they will have to pay a compensation amount to the customers. This will account to about 11 to 12% rate of interest which includes the lending rate of 2% as well. Thus the customers can look forward to refund if the project is not completed on time thus keeping in mind the interest of the buyers.
Developers, agents, and customers all have to follow the rules laid down under the RERA act and in case the same is not done, imprisonment is the punishment for them along with paying 10% of the total cost project cost for the developers and 10% of the property cost in case of the agents and customers both.
- No Discrimination
No kind of discrimination should be made on the part of the buyers and the developers. Both the parties are free to file their complaints and necessary action should be taken by the authorities as well as the concerned officers within the period of 60 days.
Transparency is something which will be achieved with the introduction of the RERA act. This means that the developers will have to share complete information with the public like the design, sanctioned plans, delivery date of the project, money used, changes if made in the design or the plan, amount gathered etc. Thus the buyers will have all the details about a specific project and can decide whether it is worth investing or not.
- Sale On Carpet Area
It is essential to declare the size of the home depending on the carpet area whether it was sold before the introduction of the RERA. This is done to ensure greater transparency which was the first motive of the government.
- Financial Capacity
Project registration is the first step and the developers need to submit the following documents for it. This includes their PAN card, balance sheet information, annual report including profit and loss statement, an account of the cash flow, auditors report for the last 3 years, collaboration agreement copies along with authenticated copy of the project name too. The developer needs to mention about the closed as well as the open parking areas in their project as well.
- Construction status
The developer will have to keep the buyers updated regarding the construction status of the project from time to time. This will be made available on the official website from where the buyers can see the design of the project, type of apartments, facilities included, design structure etc in the form of photos. Floor wise photos need to be uploaded before the end of every quarter in order to provide a complete idea of the construction.
- No Income Tax Returns Needed
There will be no need to file any income tax returns because of the confidentiality associated with the project thus reducing the burden on the shoulders of the developers.
- Detailed Information On RERA Official Website
Both the developers and the buyers can find complete and updated information on the RERA available on the website. All the projects which are registered with them can be browsed for information regarding the completion date, updates on the construction and lots more. So both the parties can enjoy latest and updated news which they are looking for.
You can say that the main motive of RERA is to assist the developers and buyers both so that timely delivery can be made and the developers need to face any loss. RERA will bring in the desired clarity which it was lacking before thus bringing a revolution in the real estate industry and taking it to new heights.