Real estate lacks transparency.
Real estate is a risky investment.
Real estate disputes are unsolved for a long period of time.
If you are hesitant to invest in real estate because of these reasons, there is a reason to rejoice. The Real Estate Regulatory and Development Act ensures to restore the lost trust of the investors in the Indian Real Estate. The bill came into action earlier this year and Rajasthan has laid out the rules and notified them to give the best assurance to the real estate buyers. Let us read all that you need to know about RERA before buying a property in Jaipur.
The RERA bill was introduced in the year 2013 by INC Govt. By the end of the year 2015, the Union Cabinet of India passed the bill after approval of 20 major amendments. It was only after 4 months that the bill got a nod from the Rajya Sabha and on March 15, 2016, the Lok Sabha approved the bill too. The bill came into the force from May 1, 2016, onwards with 69 of 92 sections notified. It was the responsibility of the state Govt. to set up the rules for carrying out the provisions of the Act within 6 months.
The Law committee :
The cases would be heard and resolved by a committee of three; a chairperson, a Judicial person and a Technical/Administrative person. It is the responsibility of the state to establish an authority to address the grievances of the buyers against any builder. The local body would be regulating both the commercial and the residential real estate. For the project delays, the developers need to pay a fine and for the violation of the RERA terms, there can be a jail term for 3 years accompanied by the fine (10% the estimated cost of the project) too. The appellate tribunals will be resolving the cases within 60 days of time period.
The instructions for the developers:
The law ensures the timely possession of the property by instructing the developers to keep 70% of the funds for the property in the dedicated bank account. Thus, no project would remain uncompleted for a longer period of time. The builders would also be not investing in many projects keeping the risk of incompletion high. The projects (with more than 500 sq. mtr. Or 8 apartments) get the RERA approval certificate only when all the information is delivered to the prospects without any disambiguation. Thus, promoting the transparency in the real estate transactions and making it less of a risk.
The law also empowers the buyers to complain the builder for the shortcomings in the property within a year of getting the possession. The builders cannot make any changes in the layout of the project after it has been pre-booked without the consent of the 70% of the buyers. Thus, the buyers get the possession at the price they sealed the deal and there would be no surplus.
What does this mean?
The authorities will certainly be making the real estate easier for the investors. The chances of falling prey to the false schemes and the cons would be reduced to a greater extent. The buyers can withdraw their booking amount in full if the builder fails to deliver the project on time. This act would be putting the pressures on the builders and the buyers can buy the property in Jaipur hassle-free.
This is certainly a positive ray in the murk of the real estate in Jaipur. The buyers are sure that they will be getting the best of their investment. The initiative would bring the results soon. Fingers crossed.