Important facts about RERA Rajasthan for Home Buyers

Rajasthan Real Estate Regulatory Authority or Raj RERA was constituted on March 6, 2019. Although the rules were notified and the website was launched for the citizens on June 1, 2017. The RERA Act Rajasthan was implemented with the objective of bringing transparency to the real estate sector and create a customer-friendly market. RERA encourages builders and developers to register themselves with it and provide details of their projects. Moreover, it also provides an open platform for the homebuyers to register their queries and complaints.

So, if you are a home buyer from Rajasthan, we at Truehomes24 have listed significant facts about Raj RERA Act that you should know.

Registration of Real Estate Projects

All the commercial and residential real estate companies are compulsorily required to register their projects along with details. In the absence of registering with RERA, the company won’t be able to advertise, market, book, sell any plot, apartment, or house.

Penalties in case of no registration

If the real estate builders fail to register as per the RERA Act, they will be charged with a penalty which may extend up to 10% of the estimated project cost. If they are found violating the Act any further, they shall be entitled to imprisonment for a period of 3 years or less. They may even be entitled to a fine payment which may extend up to a further 10% of the project cost.

Registration of Real Estate Agents

As per Act, every real estate agent is required to be registered with RERA failing which he shall not be able to undertake the sale or purchase of a property. If he still carries out his business activities he shall be charged with a penalty of 10,000/- rupees for every day during the period when the default continues. The fine may collectively extend up to 5% of the cost of the project.

With this feature, home buyers and tenants would be able to differentiate between reputed and fraudulent agents.

Filing of Customer complaints

As per the RERA Act, customers can file complaints against the officers for violating any rules, regulations, or provisions of the act. For the speedy redressal of the complaints, RERA can provide an adjudicating mechanism. However, if the customer is dissatisfied with the redressal, he is free to file an appeal with the High Court.

Financial rules

As per the act, the builder or real estate developer shall not charge more than 10% of the project cost as the advance payment without entering into a written sale agreement. Moreover, 70% of the amount received from the buyers shall be deposited in a separate account and shall only be used for the construction cost and land cost for that purpose.

Transparency

To maintain transparency it is compulsory that details about the registered projects are made available online and the sanctioned plan should match the exact construction. In case of a discrepancy between the proposed plan and the project’s exact layout, the customer is not liable to buy the property. If a developer does this act, he shall be liable to pay the entire amount invested by the buyer along with a compensation amount.

Buyer Rights

As per the Act, the buyer has the right to seek complete and detailed information about the property. No alterations or additions can be made in the sanctioned plans without the consent of at least ⅔ of the allottees. The developer shall pay interest for every month of delay if he fails to complete the project in the stipulated time. Also, the rectification of any structural defects or poor quality construction will be the responsibility of the real estate developer. 

End Note

The implementation of Raj RERA and regulation of the property construction and sale procedures have developed a more customer-centric mechanism that aims to provide a sense of security to the customers while buying a property.

Truehomes24 is among the leading real estate and property websites in India where we list RERA registered real estate companies and agents and invite citizens to buy and sell property in the most righteous manner.