Real estate sector in India has been riddled by fraudulent practices like false sale agreements, dubious delays in handing over properties, construction not as per building plans and more. Today things have become different and less troublesome. RERA (Real Estate Regulation and Development Act) has transformed the real estate industry and made real estate deals less complicated.
Before buying your flats or villas in Trichur, just check out the RERA regulations! Here’s an insight on RERA by Vishraam Builders, the most eco friendly builders in Thrissur.
Here’re the main issues handled by the RERA Act
1. Project Delays
For many years real estate had suffered because of the long term delays in handing over projects of apartments and villas (nearly 3 to 5 years) which were completely against the terms of the sale agreement. RERA stipulates that if a builder falls behind schedule for completing a project, the customer should be compensated. Up to 10% fine can be imposed on the builders by the government if there is a major delay.
2. Absconding builders
There had been cases of many builders absconding after collecting huge deposits and funds from home buyers for the apartment or villa project under construction. Some builders even abandoned the projects while the work was in progress. RERA rules state that it is a punishable offence and the errant builders can get upto 3 years of imprisonment.
3. Breach of sale agreement
Before the RERA act came into force, if buyers wished to withdraw or cancel the agreement they made with the builder due to the slow pace in construction or due to unsatisfactory services, they couldn’t do so. The builders refused to refund the invested amount also. But RERA has brought in a welcome change & the customers’ complaints are dealt on a priority basis at the consumer redressal system. Builders will even have to risk losing their license.
4. Deviations from the original plan
Builders today cannot deviate from the initial plan at the time of construction of the housing project. RERA stipulates that a real estate project with a total developed area exceeding 500 sq. mtrs. or more than 8 apartments proposed, must be registered. Even the existing projects without the completion certificate (CC) or occupancy certificate (OC) need to comply with the RERA Act.
5. Illegal permissions
Nowadays, illegal permissions from government-controlled bodies for power, water and other utilities by producing forged documents is an old story. Post RERA, there cannot be pre-launches of villas or flats without requisite approvals from the local municipal or development authority.
6. Advance payment not more than 10%
As specified by RERA a builder cannot accept an amount more than 10% of the cost as an advance payment or an application fee without first entering into a written agreement for sale and registration of the sale agreement.
RERA has brought about more clarity in real estate and home buyers can venture into buying their flats in Thrissur worry-free. Buy your apartment or villa in Thrissur from a trusted builder like Vishraam Builders registered with the RERA. Book now!