The Real Estate (Regulation and Development) Act, 2016 also known as RERA will be implemented in Karnataka soon.
RERA is an Act of the Parliament of India which seeks to protect homebuyers as well as help boost investments in the real estate industry. Thus the Karnataka government is all set to bring this law into effect and here is good news for the home buyers.
Here are the five important things to know about RERA before you buy a home.
The ongoing projects with more than 60 % of the work completed and those who have been given sale deeds will come under the new RERA rule. This move has disappointed the home-buyers who feel that it will affect the assessment at the completion of work. They feel the developers may manipulate the provisions of Real Estate Regulatory and Development Act as they are excluded from it.
RERA come into force on May 1. But only 11 states and 7 UTs have notified state rules while rest are in the process. In fact, Karnataka was the first state to notify the draft rules last year, but it is yet to come out with the final rules and set up a state-level regulatory authority mandated by the Act.
The final notification of rules under RERA in Karnataka is still not out. It is not possible to get the complete picture until all provisions are put on the table.
Those who are yet to start the construction of their buildings or in the initial stages of construction come under the RERA. It is mandatory to the new builders to follow the rules and fix feasible rates for the flats as mentioned in the RERA.
According to RERA no builder can delay the completion of the project and will have to hand over the flat to the customers on time, as promised by the builder. In the process, if the house is completed within time, there is no reason for the builder to ask additional amount than decided earlier.
The new Act applies to all houses in the initial stage of building and yet to be commenced which are a minimum of 500 square metre or any residential projects which have eight flats. The flats cannot be sold unless the project plan is registered at the Controlling Authority. If the developers fail to stand by the rules, the registration can be cancelled by the authorities concerned. The authorities can even freeze the bank account used to make transactions for the project.