The Government of India surpassed the Real Estate (Regulation and Development) Act (RERA) in 2016 to set up an authority for the Real estate sector. And all sections of the Act shall come into force with effect from May 1, 2017. . Under RERA Act, the Government of Kerala established the Kerala Real Estate Regulatory Authority (K RERA) for the smooth regulation and promotion of the real estate sector in the State of Kerala. The act will help to bring more transparency and credibility to the entire purchase procedures and It will also help to redefine the promoter-buyer relationship in the real estate sector.
RERA Registration shall be valid for the period required to complete the project or phase, as declared by the builder/developer. It may extend the validity of the registration in the event of a natural calamity like flood, drought, fire, etc, and also in case of a war. Only force mature events are the ones where real estate developers can have some leeway of not delivering on time.
1. A standard method for the calculation of Carpet Area has been clearly defined by the RERA Act and the same formula would be applied by all builders/developers for the calculation of the carpet area. 2. RERA Act has now clearly specified that the interest paid by both builder and home buyer shall be the same.
3. This act will reduce the risk of builder Insolvency/ Bankruptcy by ensuring that the funds raised will be used for the purpose only for which they are raised and not for other purposes.
4. The buyer has the right to withdraw from the project with a full refund of the amount paid along with interest and claim compensation if the builder backs out of the deals or any commitments made by the builder and the actual project.
5. The builder has no right to take more than 10% of the cost of the apartment, villa, or any property as advance or application fees before completing the sales agreement.
6. Builders will have to give a 5-year warranty against structural flaws as per RERA. The buyer shall be entitled to claim compensation if builders fail to rectify the damages to properties.
7. A buyer can file a case and send legal notice to the builder and claim your refund along with the interest or damages when a builder delays the possession of the property.