Real Estate (Regulation and Development) Bill, 2016
States and Union Territories are mandatory to establish ‘Regulatory Authority (RA)’.
Investors and buyers have to deposit at least 70% of the stake. This money can only be used for project construction and land costs.
To clarify to buyers, developers have to report their other ongoing projects.
Details of the income details they received from the issuer, how the funds are used, and the timeline for the creation, termination and delivery that need to be certified by the engineer / architect / certified chartered accountant.
The responsibility of every state regulator will be to register real estate projects and real estate agents in their state under Real Estate. The details of all the registered projects will be placed on the website for public notice.
The regulator will protect buyers in this regard for five years from the date of possession. If any issue is published during the period against the rights of the buyers, including the quality of the construction and the provision of the service, the developer will have to rectify it for 30 days.
Developers can not invent, announce, sell, offer, market or book any of the plots, apartments, buildings, buildings, projects, without first registration with regulatory authorities. Furthermore, after the registration, all advertisements invited for the investment will have to bear the unique RREA registration number. Registration no. Project wise will be provided. After registering the project, developers will have to give details of their financial statements, legal title deeds and supporting documents.
If promoters have defaulted on delivery in the stipulated time, depending on the model contract given by RARA, there will be a need to repay the entire money invested by buyers with a pre-agreed interest rate specified in the agreement.
If a buyer does not like to take back the money, then the builder will have to pay monthly interest in each delay month until delivery is received.
After registering with Developers Regulator, the Regulatory Authority website will upload all information related to the registered project on the website of the Regulator that will create a page for the builder on the website. The number, apartments, plots and projects and their completion status will be updated on a maximum quarterly basis.
To add more security to buyers, RERA commands that before signing the registered sales contract, developers can not say more than 10% of the cost of property as the amount of the latest payment. By case on a case-by-case basis the regulator will have the power to impose a fine and imprisonment of builders. This can go for three years for the jail project.