It’s a dream of most the people of buying a desirable house. However, it is difficult to buy a house at real estate prices which is quitter higher than as compared to the income level of a person. Moreover, before any statutory laws, builders and contractors have their own norms and policies in builders-buyers agreements which ultimately favours the builders. Therefore, to protect and safeguard the rights of the buyers who invest in real estate properties and to ensure non-exploitation of the builders, the Government of India introduces the RERA Act, 2016 in order to maintain a fair contract between the buyers and builders.
RERA (Real Estate Regulation Act) which was enacted in the year 2016 to safeguard the interest of the Real Estate Buyers. The main objective of this act is to protect the interest and outline the obligations of the buyer and seller (builder) in Real Estate properties. The RERA Act has certain norms which keep the transparency of transaction in Real Estate property. Under this act, it empowers some of the institutions like Real Estate Authority and Appellate Tribunal in every state in India.
Key Provisions under RERA Act, 2016
There are some of the key provisions of this Act which are important while dealing with any Real Estate projects.
- The RERA Act directs all the commercial and residential real estate projects which are more than 500 sq. m shall have to be registered under the state’s Real Estate Regulatory Authority (RERA).
- If there are any ongoing projects without Completion Certificates (CC), as on the date of commencement of the Act, is directed to file for registration within three months.
- The authority will have their own discretion either to accept or reject the registration within 30 days.
- If there is any non-compliance to the registration process a project has to pay a penalty of 10 per cent of the total project cost or imprisonment of up to three years.
- Every Real estate agents, facilitating the sale or purchase of any Real Estate projects have to register themselves with the institution.
What is Carpet Area?
Under the provisions of RERA Act, the Carpet Area is the net usable floor area of an immovable property (Apartments) and the area covered by the internal partition walls of the apartment, excludes the space covered by the external walls, areas under services shafts, balcony area and open terrace area, but includes the area covered by the internal partition walls of the apartment.
So all this above information, it must have enabled you about the legal aspects of dealing with Real Estate sector. However, it is also important to consult with your legal advisor before investing in such project as well as the agents dealing with Real Estate agents for your better understanding.