Free Updates on RERA (Till 4th May)

Dear Frndz, Here are some key updates on RERA in India

  1. Conditional coverage defies the central Act
    Despite continuous monitoring and follow up by the Ministry of Urban Development and Housing, Government of India, only nine states (Andhra Pradesh, Bihar, Gujarat, Kerala, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, and Uttar Pradesh) and six union territories (Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Lakshadweep, and National Capital Territory of Delhi) have notified their respective
  2. Major Disconnects in some States over RERA Act:
    1. Major points of disconnect:
      1. Definition of ongoing projects: RERA 2016 includes projects that are ongoing on the date of commencement of the Act (i.e., May 1, 2017), and for which the completion certificate has not been issued. However, Andhra Pradesh, Kerala and Uttar Pradesh have altered this definition in their notified rules.
      2. Penalties for non-compliance with the Act: RERA 2016 recommends imprisonment for a term which may extend up to three years, or fine which may extend up to 10% of the estimated cost of the real estate project, or both, in case of non-compliance with the Act. However, most states have added a clause of compounding of offence to avoid imprisonment.
      3. Payment schedule and liability in case of structural defects:According to the central legislation, the model sale agreement is required to specify 10% advance payment, or charge an application fee from buyers, while entering into a written agreement for sale. In addition, in case of any structural defects arising within five years of handing over the possession of project to buyers, developers will be liable to rectify such defects without further charge. However, there is no clarity on these clauses in most states’ RERA notifications.
  3. A Mumbai-based developer (Mayfair Housing ) and a Thane builder (Raunak Group) are probably among the first in the country to register their project under the Real Estate Regulatory Authority (RERA), which came into effect on May 1.

These were some of the key updates on RERA. Hope you liked it. Do share your valuable feedback with us, it will help us make this platform a better place!! Thanks and Cheers!!

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