the goan I network
PANAJI
RERA is aimed at bringing more transparency between buyers, agents and builders at various stages of real-estate transaction.
Until now, no one act provided protection to buyers in an event of delay in handing over possession by builder, misrepresentation by an agent, mis-utilisation of funds by builders, poor quality of delivered flats; but RERA has changed it all by ensuring that responsibility is placed upon builders and agents for their wrongful acts.
Thanks to RERA, consumers can now remain assured that money paid by them to builders will be utilised only for the project in which they have bought real-estate, and not in any other project a builder may wish.
Section 4 of RERA provides that builders will have to deposit 70% of the amount paid by buyers in a separate bank account from which withdrawals will be allowed only for payment towards land cost and cost of construction.
Not just that, the section further says that builders will be allowed to withdraw money from such a bank account only in proportion to the percentage of completion of the project. RERA puts further responsibility on the builders by saying that an engineer, an architect and a chartered accountant has to certify that the withdrawals from the account are in proportion to the percentage of completion of the project.
RERA has also made builders responsible for repairing structural defects and even other defects for a period of five years from the date of handing over possession. This will make sure that builders and contractors will not do sub-standard work to finish a project.
Section 14 of the act says that for a period of five years from the date of handing over possession of real-estate, a promoter is responsible to rectify structural defects, other defects in workmanship brought to his notice within 30 days.
Delay in giving possession of project is way too common in this industry. To prevent this, Section 18 of RERA says that in an event a builder is unable to give possession of real-estate, allottees can demand money paid by them to the builder alongwith interest.
Misrepresentation by real-estate agents to buyers is another issue plaguing this sector. To address this issue, Section 9 says that agents will not facilitate sale or purchase of real-estate, unless they are registered under this section.
Under this section, every real-estate agent will be granted a registration number by the authority under this act, which should be quoted in all transactions. Thanks to this, buyers can even ask an agent about his registration number to know whether he or she is genuine or not.
RERA has given protection to buyers under a number of sections, but, at the same time, it also has provisions to make buyers more responsible towards builders.
Section 19 of the act says that allottees must make payment to the builders within time-frame as specified in the agreement failing which allottees are liable to pay interest to the builders. Moreover, onus has been put on allottees to participate for formation of their association or society or cooperative society.
Buyers of real-estate will have their interest protected at various stages of a transaction
To ensure money paid by allottees to builders will be used only for the project in which allottees have invested
Provision to ensure that builders repair defects for a period of 5 years from handing over project
Real-estate agents will have to take a registration number to quote in transactions, which will take care of unscrupulous elements
Buyers will also have to make timely payments to builders, failing which they will have to pay interest
