By Accommodation Times Bureau
According to Real Estate ( Regulations and Development ) Act 2016, any person paying more than 10% of the cost of the flat, apartment or unit will have to enter into registered agreement. Builders who use to have prelaunch of the project and take token will have to take license from the state RERA Authority before asking any booking amount for any project. The builder has to fulfill all the condition before taking license for the project. Among the documentation, builder needs to submit Sanction Plan, which includes Environment Permission, TDR, Traffic, Fire and CRZ or Civil Aviation permissions.
A promoter shall not accept a sum more than ten per cent of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale, under any law for the time being in force.
Any investor who is paying or investing and violating any norm is subject to penalties and prosecutions.
The promoter at the time of the booking and issue of allotment letter shall be responsible to make available to the allottee, the following information, namely:—
(a) sanctioned plans, layout plans, along with specifications, approved by the competent authority, by display at the site or such other place as may be specified by the regulations made by the Authority;
(b) the stage wise time schedule of completion of the project, including the provisions for civic infrastructure like water, sanitation and electricity.
Every allottee shall take physical possession of the apartment, plot or building as the case may be, within a period of two months of the occupancy certificate issued for the said apartment, plot or building, as the case may be. Once the OC comes, it is necessary to take the possession. Hence Investors who normally do not go in for Agreement and take possession, sometimes Benami deals, will be in big trouble if the possession is not handed over.
With transparency level so high, RERA needs every real estate transaction to record with authority and investors, normally invest in cash will not be welcomed under new regime of the Act.