A home is built, sold, marketed, and purchased by a number of parties, each of whom has a duty. In 2016, the Real Estate (Regulation and Development) Act, or RERA, was implemented with this aspect taken into account.
Everyone embraced this ground-breaking act as it was designed to provide promoters, agents, and buyers with more responsibility and openness. The RERA regulations might be drafted by any state. Rules are useless if they are not followed; thus, it is crucial for everyone to be aware of the specific fines and repercussions of breaking them, whether they are buyers, agents, or promoters. Below is a list of the key penalties in RERA suggested by Mr. Anurag Goel, Director of Operations at Goel Ganga Developments.
PROMOTERS/BUILDERS
The total project cost if the project is not registered with RERA is 10%. A fine equal to 5% of the project’s total cost will be imposed for inaccurate information and data disclosed to any organisation. Failure to comply with RERA regulations may result in a fine of 10% of the project’s total cost or three years in jail.
AGENTS
Failure to register the project will result in a penalty of either Rs. 10,000 or 5% of the total project cost. Fine for breaking RERA regulations is 5% of the project’s total cost. Appellate Tribunal: Failure to follow regulations may result in a penalty of up to one year in jail or 10% of the project’s total cost.
BUYERS
5% of the project’s total cost per day, is the penalty for breaking the RERA regulations (specific state and locality).Noncompliance with the regulations (Appellate Tribunal): one-time fine equal to 10% of the project’s total cost, plus one year in jail. The severity may warrant the imposition of both.
Buying a property is an investment, therefore it’s critical that all parties collaborate to make the process go well. Acquire control and make informed choices by staying up to date on the laws and obligations that apply to you as a buyer of a property in your state.
