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The Real Estate Act of 2016 and Impact of Rera Rules on Builders

The Real Estate Act of 2016 and Impact of Rera Rules on Builders

Earlier, you might have heard a lot of cases regarding the real estate property possession cases. With building promising various things before the contract and then years of delay in the construction lead to a lot of dispute over the properties. There were some disputes which were going for 5-10 years which is quite a big time and your hard earned money was wasted. There were no rules earlier which will protect the interest of the buyers from the property fraud. But it all changed when the Real Estate Act of 2016, Rera Rules for Builders was passed. Now the real estate industry has to work under these new rules and regulation and follow certain conditions. 

Important features of RERA Act

There are various laws imposed on the real estate industry which will help in protecting the interest of the buyers. Not only that it will ensure that you get the possession of your property on time. These are some of the provisions which were passed by RERA to prevent builder from any delays in their projects.

  1. Declaration through an Affidavit –

First of all, every builder needs to provide a time limit under which they can complete the project. This will be done by the declaration of the time on an affidavit. These will ensure that you will get proof if the builder has any type of delay on their project.

  1. Date of possession mentioned –

Not only the date of the possession but the agreement also need to provide the rate of interest if there are any issues with the project. There is various time limit which will depend on the builder and the type of work you will be getting. 

  1. Avoid any issues with the land –

Most of the time you might have watched in the news that a builder stops the construction work due to the dispute over the land. In this a lot of people face loss and you can avoid such issues with the Real Estate Act of 2016, Rera Rules for Builders. In this, the builder needs to provide you a document which can ensure you that the land is clear of any legal issues.

  1. Free from mortgage claims –

There might be some issues like a mortgage on the property which might delay the transfer. In such cases the need to write an affidavit that can assure you about the mortgage on the property. This is also applicable under the new Real Estate Act of 2016, Rera Rules for Builders.

How to protect if anyone breaks the law?

You might be wondering as to what will stop the builder from breaking the law. There are some steps taken by RERA in order to prevent anyone from breaking the law. There are penalty and compensation which the builder needs to provide if they do not abide by the rules and regulations. There are various factors which will determine the price of the penalty and it will be determined by the state.

According to the Real Estate Act of 2016, Rera Rules for Builders if there is any delay in the possession of the property by the builder then you can claim the refund. You will get the amount paid by you along with interest on it. If they do not pay back the money then you will get paid back with interest every month delayed by the builder.

How much interest rate you will get for any delay?

Are you wondering how much interest you will get if there is any delay in the construction work? If you are then according to the Real Estate Act of 2016, Rera Rules for Builders the highest Marginal cost will be about 2 percent. The interest rate will be mentioned in the cost beforehand. For different stats, the interest rate will also be different. Every state government will have to inform the interest rate applicable to the defaults. So you need to first find out what the interest rate is in your state before forming the contract.

In conclusion, the Real Estate Act of 2016, Rera Rules for Builders is very helpful for people who were looking to buy a property. If you are facing any trouble with your contractor then you can take legal help. These things are now taken very seriously so that you can avoid various types of issues. If you have been a victim of unfair practice by a builder then you will definitely get the help from these new laws.

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