Introduction
Owning a plot of land is a significant milestone, but navigating the real estate market can be challenging. The introduction of the Real Estate (Regulation and Development) Act, 2013 (RERA) marked a pivotal moment in the industry, designed to simplify the process for buyers and enhance transparency.
Prior to RERA, the real estate sector faced challenges such as project delays and limited transparency, which sometimes left buyers uncertain about their investments. RERA was introduced to address these issues by bringing in regulations that protect buyers’ interests and ensure developers adhere to their commitments. This framework has significantly increased transparency, provided buyers with greater confidence, and created a more reliable environment for real estate transactions.
What constitutes RERA?
RERA stands as a guardian for property buyers, enforcing transparency, timely delivery, and accountability. Its key objectives include safeguarding buyers’ interests, standardizing business practices, and introducing a dispute redressal mechanism.
- Establishment of Real Estate Regulatory Authority (RERA): The Act requires each state to establish a Real Estate Regulatory Authority, a body empowered to enforce compliance with real estate laws actively. This authority is not just a regulatory body but a crucial enforcer that oversees real estate projects to ensure they meet legal standards and adhere to established timelines.
By mandating project registration, conducting regular monitoring, and rigorously enforcing regulations, the authority plays a vital role in safeguarding the interests of both developers and buyers. This enforcement mechanism helps create a more reliable, transparent, and accountable real estate market, fostering trust and stability in the industry.
- Mandatory Registration: All real estate projects and agents must be registered with RERA before advertising, selling, or booking plots, apartments, or buildings. This registration is intended to prevent fraudulent practices and ensure that only verified projects are marketed to the public.
- Protection of Consumer Interests: The bill outlines specific rights and duties for consumers, including the right to accurate information about the project, the right to timely possession, and the right to receive compensation for project delays or defects. Developers are only allowed to accept up to 10% of the property cost as an advance when signing a formal sale agreement.
- Transparency Requirements: Developers must disclose detailed project information on the RERA website, including sanctioned plans, layout plans, and stages of construction. They are required to update this information regularly, ensuring that buyers have continuous access to up-to-date information.
- Escrow Account for Project Funds: To prevent the diversion of funds, developers must deposit at least 70% of the money received from buyers into an escrow account. This amount can only be used for the construction and land costs of the specific project.
- Timely Project Completion: The bill imposes strict timelines for project completion. Failure to adhere to these timelines can result in penalties for developers, including compensation to buyers and revocation of the project’s registration.
- Grievance Redressal Mechanism: A Real Estate Appellate Tribunal is established to address disputes between consumers and developers. The tribunal is empowered to pass binding orders and resolve consumers’ grievances efficiently.
- Penalties for Non-Compliance: The bill imposes significant penalties, primarily in the form of fines, with imprisonment as a potential but less common outcome for severe violations. These measures are designed to ensure that all stakeholders in the real estate sector adhere to the law, promoting a culture of compliance and accountability across the industry.
Checklist Before Buying a Plot
When purchasing a plot for the first time, it’s essential to approach the process with thoroughness and caution. Here’s a checklist to guide you through the key steps:
- Verify Project Registration: Ensure the project is registered under RERA. This registration confirms that the project meets all legal requirements and is monitored for compliance, providing you with assurance that your investment is secure.
- Check the Developer’s Credentials: Investigate the developer’s track record to ensure they have consistently delivered quality projects on time. A developer with a solid history reduces the risk of delays in possession.
- Understand Payment Terms: Clarify the payment schedules and any additional charges that might arise before committing. This will help you avoid unexpected costs and plan your finances accordingly.
- Conduct Legal Due Diligence: Review the land title, encumbrance certificates, and other relevant documents. This step ensures that the property is free of legal disputes or financial liabilities that could complicate your purchase later.
- Familiarize Yourself with Processes: Understand your rights and the steps to take if issues arise. Being well-prepared with this knowledge will empower you to make informed decisions and handle any challenges with confidence.
How Purva Land Makes This Easy for Our Buyers
At Purva Land, we understand the challenges of buying property, which is why we make the process as seamless as possible:
- Clear Titles: We provide clear, legally vetted titles, ensuring your peace of mind.
- Approved by Relevant Authorities: All our projects are RERA-registered and approved by relevant authorities.
At Purva Land, your satisfaction is our priority. We’re committed to providing a smooth, hassle-free experience, helping you turn your vision of owning a plot into reality. With a legacy of trust and a reputation for delivering excellence, you can rely on us to make your property purchase secure and rewarding.
Contact us at 080 4455 5525 or check our website to discover our plotted developments across Bengaluru, Chennai, and Coimbatore.