The Government of India has implemented different housing acts for the benefit of its citizens. Among them, the RERA Act is one of the most far-reaching schemes other than the PMAY. It aims to establish transparency and uniformity in the real estate for better communications and transactions between builders and customer, giving due importance to the latter party. The government has made it mandatory for builders to apply under this Act to resolve discrepancies embedded in the real estate sector.
A buyer may require a home loan if they are aiming to buy a house. Such individuals should know the penalties mandated under this central government act aimed to benefit the sector and the buyers –
- Builders or promoters are subjected to pay 10% of the project’s total estimated cost if they do not have RERA registration. Furthermore, such individuals will be charged with 5% of the project budget if they provide any false information to their customers.
- An act of non-compliance with this Act will require builders to pay 5% per day of the total estimated cost of the property to the buyer/s.
- According to the Real Estate Regulatory Authority (RERA full form), if there’s a case of non-compliance with the Appellate Tribunal, developers may face up to 1 year of imprisonment. Such individuals can also be charged with 10% of their projects’ estimated costs.
- In case a builder violates the law, they will face imprisonment for 3 years or such be charged with 10% of the project’s total probable cost.
The RERA Act in India has crafted different penalties that help to maintain transparency between both the parties. Furthermore, it helps an individual to avail different benefits to purchase a house.