CA.Sangam Aggarwal
Quick Summary
Introduction In today's world, every person purchase immovable property from Real Estate Developers* whether for residential purpose or for commercial purpose. Sometimes allottees* faced challenges such as project delays, hidden charges, lack of information and mismanagement of funds by developers.
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FAQ :
The primary purpose of the RERA Act, 2016 is to regulate the real estate sector by establishing uniformity through common guidelines and practices, defining clear roles for developers and buyers, protecting allottees' interests, and promoting transparency in transactions.
An escrow account is a special bank account where developers must deposit 70% of the funds collected from allottees for a specific project. This ensures that the money is used solely for the development of that project, safeguarding buyers' interests and preventing fund diversion.
A real estate project must be registered with RERA if it has a land area exceeding 500 square meters or if it plans to develop more than eight apartments, including all phases of the project.
Yes, real estate agents are covered under RERA. It is mandatory for them to register with RERA if they are selling apartments in projects that are registered or liable to be registered.
Penalties for developers include fines of up to 10% of the estimated project cost for non-registration, with continued non-compliance leading to potential imprisonment and fines up to 20% of the project cost. Providing false information can incur penalties up to 5% of the project cost.
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