The Real Estate (Regulation and Development) Act, 2016, which was notified to commence from 1st May, 2017, has mandated all State/ Union Territories for prepare Rules and set up Real Estate Regulatory Authority (RERA) with the sole moto to regularize the real estate sector.
RERA has many provisions to protect the rights of allottees against any defaults, delay or fraud. Some of the important provision to protect the interest of the allottees are as under:-
1. Non-discrimination in rate of Interest – The rate of interest chargeable by the promoter for defaults committed by allottees will be the same as the rate of interest payable by the promoter for defaults committed by his explanation to s 2(za).
2. Protection for project suspension – In case the registration of a project lapses or is revoked, association of allottees may be entrusted with pending work of the project or its phase. However, such action will not be taken during the period when the promoter has a right to appeal.
3. Right to allottees to handover pending work – In case the pending work of a project is to be handed over to another person or body, the first offer to carry out such work will be made to the association of allottees.
4. Security of amount paid – Amounts, to the extent of 70% paid by allottees will be kept in a separate bank account maintained for project related receipts and payments.
5. Project Registration – As per Act, every project needs to register with RERA giving all details of completion date, legal documentation, and format of selling agreement. It would stop the builders to change the terms and protect the allottees. Project registration will introduce transparency and enable an allottee to know the details of a real estate project.
6. Transparency about Real Estate Agent – Now every Real estate agent will require registration which would enhance the transparency.
7. Publication of project details on Website – RERA would publish all the relevant details of the project for general public on its website so that it can be available and relied upon.
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