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Real Estate Developers have been warned by the Haryana Real Estate Regulatory Authority (H-Rera) not to take application fees or advance payments exceeding 10% of the price of the apartment, land, or project.
No promoter may receive more than 10% of the cost of the property without a formal agreement for sale and registration of this agreement in accordance with regulations, according to new H-Rera CEO Arun Kumar’s statement on Tuesday.
Kumar additionally instructed developers to include, as required by the Rera Act, project specifics, payment information, possession date, and other pertinent information in the selling agreement (builder-buyer agreement).
Before making an investment in any property, buyers should carefully verify these information, according to the Rera chief’s statement.
Legal Boundaries For Property Costs And Developer Responsibilities
All current and potential allottees are hereby informed about the rules governing the acceptance of advance payment or application fee for real estate projects, in compliance with Section 13(1) of the Rera Act, 2016 and Rule 8 (1) of the Haryana Real Estate (Regulation and Development) Rules, 2017.
According to the Rera Act, 2016, a written agreement for sale and registration of the aforementioned agreement are required before a promoter can receive any amount more than 10% of the cost of an apartment, land, or building.
Additionally, as required by the Act, the agreement for sale should include a number of project specifics, payment information, the date of possession, and other pertinent elements, he added.
Buyer Beware: Rera Chief Urges Caution in Property Investments
The warning was issued in response to many consumer complaints over developers’ “excessive” advance payment demands. Investors reported that some purchasers had been forced to pay more than 10% in advance, and that other buyers had been urged to make payments prior to the sale agreement being executed.
According to Kumar, Haryana Rera seeks to guarantee responsibility and openness in interactions and exchanges between real estate developers and purchasers. Observing ads for unregistered real estate developments across the city with great attention,
Kumar issued a warning to potential homeowners last week, telling them not to purchase or reserve houses in unregistered developments.
Buyer Protection: H-Rera Reacts To Excessive Advance Payment Complaints
According to him, any kind of advertisement for an unregistered real estate project is punishable under Section 3 of the Rera Act. In a same vein, Section 9 stipulates that before aiding a sale or purchase in a registered project, an individual must register with Rera.
Kumar said that each of these advertisements is being carefully examined by the authorities. “The Rera Act, whose prime goal is to safeguard the interest of the buyers, prohibits the sale and purchase of properties in unregistered real estate projects,” he stated.
Real Estate Regulatory Authority (RERA) has emerged as a pivotal force in reshaping the real estate sector in India. In the state of Haryana, and particularly in Gurugram (also known as Gurgaon), the HRERA plays a crucial role in ensuring transparency, accountability, and fair practices within the real estate industry.
Haryana RERA is a regulatory framework for Real Estate in the dynamic real estate market of Haryana, the implementation of RERA has been a game-changer. Designed to protect the interests of homebuyers and promote ethical practices, RERA in Haryana acts as a robust regulatory framework.
RERA Gurgaon: Homebuyer Protections When Project Delays
Transforming the Cityscape Gurgaon, the bustling corporate hub, has witnessed exponential growth in its real estate sector. The presence of RERA in Gurgaon has significantly impacted the way real estate transactions take place in this vibrant city.
HRERA Gurugram works for safeguarding Homebuyer Rights, the localized arm of the statewide authority, plays a pivotal role in regulating the real estate market in Gurugram. It brings forth a localized approach to address the specific challenges and opportunities within the city.
Homebuyers, developers, and investors alike stand to benefit from the stringent regulatory measures, ultimately contributing to the sustainable growth of the real estate sector in the region. Stay informed, make wise choices, and let RERA be your guiding light in the realm of real estate in Haryana and Gurugram.
Source-ET
