It is compulsory for all real estate developers/promoters to register the ongoing and upcoming real estate projects with RERA.
Consumers will now have to pay only for the carpet area.
Developers/promoters will have to communicate all the project details, which include the project plan, layout and also the government approvals to the consumer. Details regarding sanctioned floor space index (FSI), the number of buildings and wings, number of floors in each building will also be shared with the consumers.
Developers/promoters will have to share 70% of the money which has been received from the buyers for a particular project to an escrow account. These funds will be used to cover the cost of construction and land cost.
RERA also includes the projects which are ongoing and for which the completion certificate (CC) has not been issued.
It is also compulsory for developers and promoters to register their product with RERA before they advertise or market it.
If there is non-compliance of the Act, then RERA recommends imprisonment for a term, which can be extended to three years or a fine which may be extended up to 10% of the estimated cost of the real estate cost or both.
In an event in which the developer/promoter provides false information or breaches the provisions of RERA, the developer/promoter will have to pay a penalty of up to 5% of the estimated cost of the project.
Developers/promoter will also have to update the customers every quarterly regarding the project.
If there is any structural defect or any other obligations of the developer/promoter as per the agreement of the sale, it will be rectified free of cost, provided, it happens within the five years of the possession.