This real estate industry is all about the buyers and the builders. This runs with the loyalty and trust, but from the last few years some of the builders were not working in the same manner they should do.
Buyers were facing lots of problems and especially with the project delay. From May 1, 2017, all new house purchases will come with three commitments — a date of possession in writing, full refund of the amount paid with 10.9% interest in case of delay beyond the committed date of possession and interest for the delayed period, in case the buyer doesn't want the refund.
This step is something a big headache for the builders. But trust me the best step for the buyers who were facing lots of problems. From now all the buyers will sign the purchase agreement with the builders. And this brilliant move came under RERA and with this the refund money must be back in 45 days of termination.
Guidelines notified by the Centre have provided for recompense in case of overdue delivery even for ongoing projects. However the new laws will not be included in the conditions like war, floods, cyclone, and drought, which are beyond the control of the promoter.
At the same time, if a buyer defaults in payments, the developer can terminate the contract. RERA has made it possible for both the parties to avail benefits. Also the number of delayed payments can be mutually decided between the buyers and the builders. RERA has come up as a big hope and with the above facilities it has also provides for certain rights of promoters such as interest in case of delay in payments by buyer and additional payments for increase in carpet area up to 3% of area originally offered.
It is not at all like that builders are getting ignored but the law has brought benefits for both the parties. In the agreement the builder has to disclose each and every little thing. Also they have to provide the break-up cost of construction, including the cost of the apartment, the comparable cost of common area, privileged location charges and taxes and maintenance charges, among others.
Builders were given with this deadline and with the fear of loss they have shifted the day and date of delivery; some by few months and some by few years. Buyers did objected for this as the decided date was much earlier.
In one of the case like Maharashtra Real Estate Regulatory Authority, (MahaRera) builders are required to declare the date of delivery of projects. In case if the builder fails to deliver the flat on the required date it will attract huge penalties.
Builders have extended the date to years and homebuyers have also complained that the developers are now showing the delivery date as 2021-22 whereas during the time of the purchase the builder has promised that flats will be delivered in 2017-18.
This is to be said that the developers have purposely extended the dates so that they can have ample of time to complete their projects, so that they couldn’t get under the debt of penalties. As per the law the builders will be granted the margin of six months to one year for possession; said by the MahaRera Chairman Gautam Chatterjee and he also declared that the builders will be liable to pay penalties for delay.
For homebuyers, the real estate regulator has come as a much-needed organization. It must now see to it that those project developers who are seeking a dodge in the new law to avoid penalty are not allowed to get away with it. From now everything will come as a final step.
