If the area of the property is more than 500 square meters, the builders should register it under RERA Act before launching or advertising a project on that particular property.
Builders must provide proof that 70% of the total payment has been deposited by them into a discrete escrow account instead of using it for some other investment.
Builders must get all the necessary consents before advertising a new project. Discounts for early bird bookings and pre-launch offers will not be there anymore.
If you fail to follow any of RERA’s rules, there some penalties will be imposed on the buyers, developers, sellers and investors For non registration of projects 10% of the project cost to be paid, For false information 5% of the project cost to be paid like that so many penalties are there to follow.
After the Real Estate (Regulation and Development) Act, 2016 enforcement, registration of sale deed of a project unit cannot be done in the office of the sub-registrar without obtaining Occupancy Certificates or Completion Certificates.
Below are the few impacts
However, the honest promoters / builders / developers will benefit from this scenario as they will face lesser competition.
Dishonest builders will disappear as they will fail to sustain in the market after the RERA Act is implemented.
The 32 sections that have been added to the Real Estate (Regulation and Development) Act, 2016 will encourage a financial discipline in this sector.
The Real Estate (Regulation and Development) Act, 2016 has mandated the developers on how to sell their apartments depending on the carpet area. According to the Act, carpet area is the total area of the floor that can be used within the walls of the apartment. This does not include areas like open terrace, shafts, balconies, etc.T his normalization of the carpet area definition will ensure that buyers are not misled by the unlawful promoters.