"RERA Compliance Checklist for Real Estate A Comprehensive Guide for Home Buyers"
Introduction
Buying a home is a significant milestone, and as a homebuyer, being informed and cautious about your investment is crucial. The Real Estate (Regulation and Development) Act, commonly known as RERA, was enacted to protect the interests of homebuyers and promote transparency in the real estate sector. In this guide, we will provide you with a comprehensive RERA compliance checklist, empowering you to make informed decisions when purchasing property.
Understanding RERA:
RERA is a landmark legislation aimed at regulating the real estate industry in India. Its primary objectives include protecting the rights of homebuyers, ensuring transparency in project marketing and execution, and establishing a fair and efficient dispute resolution mechanism.
RERA Compliance Checklist for Home Buyers:
RERA Registration Number: Verify that the real estate project has obtained a valid RERA registration number. This number should be prominently displayed in all project advertisements and documents.
Project Details: Ensure that the project’s RERA registration includes comprehensive details such as project layout, amenities, and specifications. This information should be consistent with what the developer has communicated to you.
Developer’s Background: Conduct thorough research on the developer’s track record. Check their past projects, financial stability, and reputation in the market. RERA mandates developers to provide this information in the project documentation.
Agreement of Sale: Carefully review the Agreement of Sale provided by the developer. RERA mandates specific clauses to be included, such as carpet area details, project timeline, and penalty clauses for project delays.
Carpet Area Declaration: RERA emphasizes transparency in the calculation of the carpet area. Ensure that the developer provides clear information on the carpet area of the unit, excluding common areas.
Project Timelines: RERA requires developers to specify the project completion timeline in the Agreement of Sale. Ensure that this timeline is realistic, and penalties for delays are clearly outlined.
Project Delays and Compensation: Understand the provisions related to project delays and compensation. RERA ensures that developers compensate homebuyers for any delays beyond the stipulated timeline.
Escrow Account: Developers are required to maintain a separate escrow account for each project, where they deposit 70% of the funds received from homebuyers. Verify that the developer complies with this financial safeguard.
Occupancy Certificate: Before taking possession of the property, ensure that the developer has obtained the Occupancy Certificate from the relevant authorities. This certificate confirms that the project complies with all necessary regulations and is safe for occupation.
Defects Liability: RERA mandates a defects liability period during which the developer is responsible for addressing any structural defects. Understand the duration of this period and the developer’s obligations.
Conclusion:
As a homebuyer, being well-informed about RERA compliance is your right and responsibility. This checklist serves as a guide to help you navigate the real estate market with confidence, ensuring that your investment is protected and transparent. By scrutinizing the RERA compliance of a project and the developer, you can make informed decisions that align with your expectations and secure your dream home with peace of mind.