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Government of India has enacted the Real Estate (Regulation and Development) Act 2016 and all the sections of the Act shall come into force with effect from May 1, 2017. Making a very crucial contribution to the policy reforms initiated by the Central Government, RERA is aimed to regularize the real estate sector throughout the country. The Government of Maharashtra has established Maharashtra Real Estate Regulatory Authority (MahaRERA), for effective implementation of RERA. You can visit the official website of MahaRERA here https://maharera.mahaonline.gov.in.
Under this Act, Government of Maharashtra established Maharashtra Real Estate Regulatory Authority (MahaRERA), for regulation and promotion of real estate sector in the State of Maharashtra.
Obviously, the urban areas are the main battleground for real estate market but RERA act would regularize all the real estate transactions, including that in the Maharashtra’s rural areas. All types of projects like residential, commercial, mixed development, redevelopment and plotting schemes, are covered in the ambit of RERA.
The key components of Real Estate (Regulation and Development) Act, 2016 are as follows:
- Real Estate Regulatory Authority and Appellate Tribunal
- Real Estate Projects Registration
- Real Estate Agents Registration
- Filing of complaints
- Financial Discipline
- Citizen Centricity
For more details, you can visit the official Maharera site: maharera.mahaonline.gov.in
According to RERA Act, here are 9 key benefits of for home buyers:
- All real estate developers/promoters have to compulsorily register ongoing and upcoming real estate projects with RERA, Home buyers will have to pay only for carpet area.
- Developers/promoters will have to disclose project related details, including: project plan, layout, and government approvals related information to the customers such as sanctioned floor space index (FSI), number of buildings and wings, number of floors in each building, etc.
- Developers/promoters will have to transfer 70% of the money received from buyers for particular project to an escrow account. These funds should be used only to cover the cost of construction and land cost.
- The real estate act includes projects that are ongoing on the date of commencement of the Act that is May 1, 2017 and for which the completion certificate (CC) has not been issued.
- Developers/promoters have to register their projects with RERA before advertising or marketing.
- RERA 2016 recommends imprisonment for a term which may extend up to three years, or fine which may extend up to 10% of the estimated cost of the real estate project, or both, in case of non- compliance with the Act.
- If any developer/promoter provides false information or contravenes the provisions of registration of real estate projects – has to pay penalty upto 5% of the estimated cost of the project.
- Developers/promoters have to update project details quarterly on the RERA website.
- Any structural defect, or any other obligations of the developer/promoter as per the agreement for sale, brought to notice of developer/promoter within five years from possession to be rectified free of cost.