New Property Rules in India, Things a Home Buyer should know!
To protect the home buyers, RERA (Real Estate Regulatory Authority) India, has brought new rules against astray home builders and with penalties as well. Both the new and ongoing residential projects should abide these rules.
- Though the main real estate act is at central level, each and every individual state should establish their rules and notify to the centre. Likewise nearly 13 states have already notified their rules.
- Advertising of the properties by the builder should be initiated only after they receive all the necessary approvals from their local authority. Also advertising of any unsold properties should seek prior approval.
- For the ongoing projects, builders are required to register within their state level authorities. 70-80% of the collected money from the buyers should be properly accounted and used only for the construction purpose.
- If any builder collects more than 10% of total home value, as advance or at the time of booking, the home buyer can ask that particular builder a registered sale agreement.
- A builder should disclose the schedule of project completion to the home buyers.
- Accordingly if the builder delays or not able to meet the dead lines in finishing the project, they will now have to either pay interest until the project is completed or refund the entire amount they collected from the home buyer.
- Any major structural changes to the ongoing projects should be discussed and will need approval from at least 60-70% of home owners/buyers.
- In case of any Real Estate related disputes the home buyers can now take their complaints to specific real estate courts, which will be set up in each and every individual state.
- Home Builders who violate the above new rules/laws could be imprisoned for up to 3 years.