RERA REGISTRATION SERVICES IN PURNIA,BIHAR
The Real Estate Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 square metres, or eight apartments, to register with the Real Estate Regulatory Authority (RERA) for launching a project, in order to provide greater transparency in project-marketing and execution.
Why RERA?
For long, home buyers have complained that real estate transactions were lopsided and heavily in favour of the developers. RERA and the government’s model code, aim to create a more equitable and fair transaction between the seller and the buyer of properties, especially in the primary market. RERA, it is hoped, will make real estate purchase simpler, by bringing in better accountability and transparency, provided that states do not dilute the provisions and the spirit of the central act.
Major Benefits of RERA Act
Standardized carpet area:
Earlier the carpet area on which the builder calculates the price of the property was not defined. Every builder/developer had his own method of calculation of the Carpet Area.
For the same flat, the builder would calculate the carpet area as 1500 sq ft and the other would calculate the carpet area of 1400 sq ft.
This used to happen as there was no standard formula for the computation of the Carpet Area. However, this has now been clearly defined by the RERA Act and the same formula would be applied by all builders/developers for calculation of the carpet area.
The definition of carpet area as given by the law is-
Carpet area” means the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.
As the definition of Carpet Area has been specifically defined, this would introduce standardisation in the calculation of Carpet Area.
This has a direct impact on the Real Estate prices as most developers charge on the basis of carpet area. Builders compute the price of a property as follows:
Cost of Property = Carpet Area x Rate per sq ft
Earlier the builders use to inflate the Carpet Area as a result of which the cost of the property would also shoot up. However, now the method for calculation of Carpet Area has been clearly defined by RERA and therefore the developers would not be able to manipulate the calculation of carpet area in order to increase the prices.
Rate of interest on default:
In case of default in payment by the buyer or default in completion of the project by the builder, the rate of interest to be paid shall be the same for both parties.
Earlier what used to happen was that in case the builder delays the possession of property – the interest paid by builder to the home buyer was less whereas in case the buyer defaulted – the interest to be paid by the buyer to builder was higher.
There was no parity in the interest to be paid by both the parties. The RERA Act has now clearly specified that the interest rate shall be the same for both the parties.
APPLICABILITY OF RERA
RERA is applicable to all Builders and Developers except the following:-
- Where the area of land proposed to be developed does not exceed 500 sq meters or the no. of apartments proposed to be developed does not exceed 8
- Where the Promoter has received completion certificate before the introduction of RERA
- For the purpose of Renovation or Repair or Re-development which does not involve marketing, advertising, selling or new allotment of any apartment, plot or building.
OTHER RELEVANT POINTS
- RERA is only applicable on development of property and not on renting of property.
- RERA covers all residential and commercial projects, including shops, offices and buildings.
- So as to ensure that every family has a house of their own, the govt has also introduced the Pradhan Mantri Awaas Yojana wherein subsidy on Loan is being given for the purchase of houses.
