1. Property developer is liable for compensating the homebuyer for any loss or damage caused due to incorrect/ false statement made in the prospectus or notice of advertisement.
2. Property developer is prohibited from taking more than 10 per cent as advance from the buyers without entering into a written agreement for sale.
3. Interest payable by the property developer and the buyers in case of default to be specifically mentioned in the agreement for sale. Also, the interest rate is to be as per rates prescribed which is being benchmarked based on SBI prime lending rate.
4. Any structural alteration/ addition to the sanctioned plan to be made only after obtaining a written consent of at least 2/3rd of the buyers (other than the developer).
5. Transfer of real estate projects to third parties would now require written consent of 2/3rd of the buyers and RERA.
6. Any failure on the part of the property developer to hand over the possession of the property in accordance with the agreement for sale would empower the buyers, at their will, to withdraw from the project and demand refund of the amount paid along with prescribed interest.
7. Developer will now be responsible for fixing structural defects in the property for five years after transferring the property to the buyers. Also, such repair work needs to be completed in a prompt manner within 30 days of receipt of written complaint from the buyers.
8. Any loss caused due to defective title would have to be compensated by the developer.
9. Real estate agents will also be required to be registered under RERA.
10. Non-compliance of provisions of RERA will attract a penalty or/ and imprisonment up to a maximum of three years.
The intent of RERA is loud and clear – satisfaction of homebuyers and providing them value for their money. The only show stopper is that the State Governments have been given the right to frame rules under RERA and notifying the RERA authorities for the respective states. The State Governments have been extremely slow in this aspect.