From 1st may 2017 the RERA (real estate regulation and development) act has come into effect, which means now onwards there would be no delay in possession of your dream home. This act not only will help new home buyers but also the ones who awaiting possession of their homes.The States that have notified the rules are Uttar Pradesh, Gujarat, Odisha, Andhra Pradesh, Maharashtra, Madhya Pradesh and Bihar.
Delay in possession in home has been the biggest issue with homebuyers since ages. In some cases delay of possession has been more than 6 years for there have been legal cases filled.To have timely possession RERA has defined some regulations for such as, if there is an ongoing project which does not have completion certificate, the developer has to get it registered within 90 days of implementation of RERA act.
Certain other regulations under RERA for promoters
1. Written Affidavit: The promoter has to give an affidavit along with other required document stating the time period within which the project would be completed/delivered.
2. Possession Date would be Unimpeachable: The agreement of sale would have date of possession and the interest rate if the developer defaults the said date of possession.
3. Clear Title of Land: Promoter has to give a written affidavit that the legal title of land on which the project is to be done has legally valid documents with authentication of such title if the land is owned by another person.
4. Free from Obstruction: Mostly projects are delayed due to obstruction such as title of the land is not clear. To avoid such situations promoter has to give in written affidavit the land is free from all obstructions.
5. Maintaining Book of Records: As per RERA, 70 percent of the amount realised for the real estate project from the buyer shall be deposited in separate accounts in scheduled banks to cover the cost of construction and the cost of land and it shall be used only for that purpose.
6. Offence : If the promoter/builder does not adhere to the rules, he not only loses the registration of the project but he is also liable for punishment for a term up to 3 years or 10 percent of the estimated cost of the real estate project fine could be imposed.
With the above points if the promoter still defaults and delays the possession of the property as per the 'agreement of sale', Buyer would have the right to claim refund of the amount paid along with interest and the registration of the promoter is cancelled.
As per RERA act if the Developer delays and buyer still wants to continue, every month of delay interest has to be paid by the developer till the possession. The amount of interest has to mention at the time of booking in the agreement of sale. All States which have notified under RERA have to notify the rate of interest applicable in case of defaults in its rules and regulations under the act.