Haryana RERA stands for Haryana Real Estate Regulation Act which introduces to make transparency in the real estate industry. The (Haryana RERA) real estate (Regulation and Development) Act, 2016 brings into action to provide relief to the buyers from unfair builders. The RERA has firstly introduced on 1 May 2016 and it become fully effective on 1 May 2017.
IMPORTANCE OF HARYANA RERA
RERA is very much important for buying any real estate property because it provides relief to the buyers from the negligence of the builders. The (Haryana RERA) RERA determines certain standard norms for the building and development of real estate. Which will increase the transparency in transactions in the real estate sector. And this will reduce the risk of fraud for the buyer from the unfair builders.
BENEFITS OF RERA
- Standardized Carpet Area
- Rate of Interest on Default
- Reduces the Risk of Builder Insolvency/Bankruptcy
- Rights of the Buyer Delay in Possession
- Right of the Buyer in case of False Promises
- Advance Payment
- Right of the Buyer in case of Defect after Possession
1. Standardized Carpet Area
Before the RERA act, the carpet area was not described on which the builders calculate the price of the property. They had their own method of calculating the carpet area. Because there was no standard method of calculation of the Carpet Area. However, this clearly defines the (Haryana RERA) RERA Act that the same formula will apply to all the developers and builders for the calculation of the carpet Area.
Definition of the Carpet Area
‘Carpet Area’ is defined as the net usable floor area of the apartment, excluding the area covered by external walls, the area under the service shaft, and the area under the Balcony and open terrace area but includes the area covered by the internal portion walls of the apartment.
The Carpet area has a direct impact on the property prices. As most of the builders charge according to the carpet area.
Builders/Developers Compute the prices of the properties as follows:-
Cost of Property = Carpet Area x Price per Sq Ft
2. Rate of Interest on Default
According to Real Estate Regulation Act, In the case of default payment by the buyer or default in completion of the project by the builder/developer. Both buyer and builder. Both buyer and developer had to pay the same rate of Intrest.
Before RERA what used to happen if the buyer makes delayed while submitting the payment the rate of interest paid by the buyer to the builder is high and the case of the builder is high and in the case of the builder if he delay in the possession of the property to the buyer is less But the RERA act has now clearly specified that the interest paid by both parties are same.
3. Reduces the Risk of Builder Insolvency/Bankruptcy
Developer/Builder simultaneously constructed several projects. Earlier Builders allowed to use the assets raised from project A to support the development of project B.
In any case, this was not imaginable After the RERA introduce the developer/builder is responsible to store 70% of the total assets raised for the venture. He can pull out the assets from the record based on the finish of the Venture. Which will be certified by an architect, civil engineer and chartered accountant.
As the assets can not be used in different tasks and utilized for different purposes. This will guarantee that the assets used only for the reason. Just for which they are raised and not for different purposes.
Prior, there are for sure many cases where builders/developers raised the assets from the home buyers for developing their homes and used the assets for different purposes. Then they later become bankrupt and couldn’t finish the projects.
As the assets must be utilized for the reason they are raised-this will guarantee that the assets are utilised for the reason for which it is raised accordingly guarantee a convenient finish of the property.
4. Rights of the buyer Delay in Possession
If the builder fails to complete the project on the due date of completion then the buyer has the option-
To pull out from the project, wherein he will equip for a full refund along with interest payable from the due date of realization till the amount refunded.
To go on with the project till the completion, wherein he will be qualified for compensation alongside interest payable from the due date of completion of the project till the undertaking is really finished.
For example, say the project was expecting completion on 31-3-2017 yet it could not finished on that day. So on 1-4-2017, you have the choice to pull out of the project. On the off chance that you choose to pull out from the project, for the period from 1-4-2017 to work the instalment made, you will qualify for interest.
5. Right of the Buyer in case of False Promises
In case of the commitments made by the builder and the actual project mismatch. Then the buyer has the option to withdraw from the project. Where he qualifies for a full refund of the amount paid as advance or otherwise along with interest and claim compensation.
6. Advance Payment
Only 10% of the cost of the apartment, villa etc will take. As advance payment or application fees by the builder as the case may be, before entering into an agreement of sale.
7. Right of the buyer in case of Defect after possession
In case of any quality defect or any structural defect, defect in workmanship, provision or service discovered within 5 years after the possession of the apartment, such defect will correct by the builder at no extra cost within 30 days.
If the builder fails to do so, the buyer shall be qualified to claim compensation for the same.