With the implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA), the real estate sector has witnessed a significant transformation. The Act has brought in much-needed transparency and accountability in the sector, thereby ensuring protection for homebuyers from fraudulent activities.
One of the crucial aspects of RERA is the agreement between the homebuyer and the builder. The agreement as per RERA is a legal contract between the two parties that lays down the terms and conditions of the purchase of a property. The agreement ensures that all essential details related to the property are mentioned, ensuring complete transparency and fairness.
Here are some of the essential aspects of the agreement as per RERA:
1. The agreement must be in writing: The agreement between the builder and the homebuyer must be in writing and cannot be verbal. It is mandatory that the agreement is executed on a stamp paper of appropriate value, as prescribed by the state government.
2. Details of the property: The agreement must provide complete details of the property, including its location, size, specifications, and amenities being provided. Additionally, the builder must provide a clear timeline for the completion of the project.
3. Payment schedule: The agreement must clearly mention the payment schedule, including the timeline for payment and the amount payable at each stage of the project’s construction.
4. Registration of the project: The agreement must mention the details of the project’s registration with the regulatory authority. This is an essential aspect, and any project that is not registered as per RERA may not be considered legitimate.
5. Penalties for delay: In case of any delay in the completion of the project, the agreement must mention the penalties that the builder will be liable to pay to the homebuyer. This ensures that the builder is held accountable for any delays in the project’s completion.
6. Possession date: The agreement must mention the date by which the builder will hand over possession of the property to the homebuyer. This ensures that the homebuyer is not left waiting indefinitely for possession of their property.
In conclusion, the agreement as per RERA is a crucial aspect of the homebuying process. It ensures that the buyer is protected from any fraudulent activities and that the builder is held accountable for any delays or lapses. As a prospective homebuyer, it is essential to be aware of the details of the agreement and ensure that all the necessary aspects are covered before signing the contract.