Q: We are buying a vacation condo, which we plan to use in the winter months, but also hoped to rent it in other months. We just learned that the condo

What is RERA in Pune?

The Real Estate Development and Regulation Act 2016 has been established by the Central Legislature but it is regulated and controlled by the State Legislature. There no such RERA organization city wise, Pune comes under Maharashtra RERA. For better understanding discuss with your RERA consultant.

Though the states have liberty in formulating their regulations of RERA, but there are certain guidelines which are compulsarily to be followed while making the rules. They are as follows:

  • Standardized carpet area: Now the builders have to specify the carpet area of the flat, and has to comply with it. If there is any disparity is the real and promised carpet area, the builder needs to take proper action to compensate that.
  • Rate of Interest on default: When there is a default in payment by the buyer or default in the completion of the project by the builder, the rate of interest to be paid shall be both for the same. It puts both the buyer and seller on the same platform.
  • Reduces the risk of builder insolvency: As per the builder has to deposit 70% of the amount realized in for the project in a separate bank account which he can withdraw only for the purpose of the project. This basically aims to continue the project even if the builder get bankrupted or declared insolvent.
  • Buyer protected in case of false promises: In case there has been a false promise made by the builder, he is liable to refund the full amount to the buyer or portion, depending on the effect it had on the customer.
  • Advance Payment: Now the builder can not take more than 10% cost of the property from the buyers.
  • Buyer protected in case of the defect after possession: Under RERA Act, if any defect appears in the property within 5 years of possession of the property, the builder is liable to repair it without charging any extra cost.
  • Delay in Possession: Under the Act, if there is a delay in possession, the buyer gets option either to withdraw getting the full amount returned or to continue with the amount of compensation received depending on the situation of the buyer.
  • Right to information: The buyer is entitled to know to all the information related to the project. Anyhow, this does not include all the internal details of the real estate office or agent, only the facts which are relevant to the buyer.
  • Grievance Redressal: Any grievance against the builder can be taken to the state authority set up under the Act to redress all the grievances. The RERA is required to solve the matter within a period of 6 months unless there is a reason to delay in pronouncing the order.

Any real estate building whether in making or planning to be made are necessarily to be registered under RERA for getting a completion certificate. This must be done following the proper legal proceeding, in which a property lawyer can help.

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