Are you being delayed from moving into your new home by the builder? Well, there is an Act to oversee that you get your dream home when you were promised. Rera, Real Estate (Regulation and Development) Act, is the key that could unlock the prize you are looking for.
The RERA and property possession has 6 provisions; these are outlined as follows:
- Written Affidavit
Thanks to RERA, the law now requires the builder to make a written commitment. They have to state that the project would be ready by a fixed date. This binds the builder to complete the construction within that time frame.
- Possession date will be sacrosanct
This is the agreement of sale, it carries the possession dates. It also has a rate of interest, in case the builder defaults. It also contains the proposed date of delivery. This gives the customer, you, an option to opt out from buying the home that has been delayed. This can be risky for the builder if he delays the project.
- Clear title of the land
In several cases, the land involved is disputed and is thus delayed. In the new scenario, a clear affidavit and some valid documentation proving Clear Title of the Land can be sent directly to you. This way the land improvements and constructions are not in harm’s way. It also ensures that the builder goes straight for the construction instead of indulging in legal matters.
- Free from encumbrances
Certain conditions hinder the ability of the property to remain transferable. If you provide a written affidavit, you are free to transfer the title. Then, you can begin construction immediately.
- Maintaining Separate account
RERA now requires the builder to keep at least 70% of the amount in order to maintain a running deposit. This helps them in continuous construction. It also eliminates any delays along with the disruption caused by cash shortage.
- Making it an offense
If a builder delays a project, he would not only lose the project but may also be imprisoned for a term up to 3 years. RERA also imposes a fine on the company that could be up to 10 percent of the amount of the project.
