NRI Lawyers for RERA : Breaking down the new real-estate norms
Having a home that you can call your own is a dream every person nurtures. But, as it life would have it, everybody is not able to afford that dream, because of the sky high prices of the real-estate. Moreover, the real-estate sector of the country was not regulated and the laws were not very favourable for the buyers in the either. But the things are changing for the better now.
In the year, 2016, Government of India finally took some serious steps to regulate the Real-Estate sector, with the enactment of the RERA act.
Infrastructure is the backbone of any country; it forms the basis of future growth and development. And to retain the pace of growth pedal that India has recently hit, it became necessary to regulate the real-estate sector. RERA will protect the interests of the buyers who often face exploitation the hands of the builders/developers. It will also help the government to keep an eye on the prevalent fraudulent activities and the circulation of black money.
What is RERA?
RERA is the acronym for Real Estate Regulation Act, enacted by the parliament in the year 2016. The main aim of the RERA is to safeguard the interests of the property buyers. It specifies the norms and regulations for the development of real estate, that every builder or developer must abide by, enhancing the transparency in the various transactions and activities carried on by the real estate sector.
RERA mandates the registration all the projects with the regulatory authority. This applies to the project, already in process.
Benefits of RERA
RERA has regularised the practices in the real-estate sector, offering the buyers a legal umbrella against the malpractices of builders. Some of the benefits of the RERA are as follows:
1) Standardised carpet Area– Price of any house or building is calculated on the available carpet area. Prior to RERA, there wasn’t any defined way to calculate the carpet area of a building, which allowed builders to have their own norms. This often led to the buyers being cheated of their money.
2) Payment on interest on default – RERA offers respite to both the buyer and builder/ developer on the default by the other party. If a buyer defaults on the payment or the builder defaults in the completion deadline, both the parties will have to a certain amount of interest to the other party.
3) Norms to reduce the chances of Builder bankruptcy – RERA specifies that the builder must keep 70% of the money realised for the project in a separate account that shall be accessed only to meet the requirements of that project. In simpler terms, RERA has put an end to the practice of diverting funds of one project to the other projects, reducing the chances of builder bankruptcy.
4) Protection against false promises – In case the builder is not able to deliver the buyer what was promised, the buyer has all the right to claim his money to be refunded.
5) Advance payment – The advance for any house is capped at 10% of the total cost of the property.
6) Rights of the Buyer – The act bestows certain rights on the buyer, in case of
- i) defect after possession – A builder will be held liable for upto 5 years from the date of possession for any defect, in structure, quality or service. He will be liable to rectify such defects without charging any extra fee.
ii)delay in possession – If the builder falters on his promise of possession, the buyer can either cancel the deal and demand the complete refund, or can continue with the project, wherein he is entitled claim the compensation for the delay.
7) Establishment of grievance redressal authority – RERA provides for the redressal mechanism to deal with the disputes and grievances. Appellate tribunals are set up in the states for redressal.
Benefits of RERA for NRI
NRIs form a significant section of investors in the real-estate sector of India. They usually purchase property for investment purpose, like for regular rental income by leasing out the property either for commercial purpose or residential, according to the type of property.
Post RERA, the real sector has seen a significant rise in the investment from NRIs. With the laws becoming more transparent and buyer friendly, the confidence of NRI diaspora has increased, resulting in more investment.
To understand RERA and the complete benefits it offer, a NRI buyer must consult NRI Lawyers for RERA. A NRI Lawyer for RERA is a lawyer who has done an extensive study in the RERA, with a special focus on NRI investments.
NRI transaction fall under FEMA (Foreign exchange management act). So, while buying a property in India, the NRI must have a detailed information about both RERA and FEMA. A NRI lawyer for RERA would be the right person to consult here.
About NRI Lawyers for RERA
A NRI Lawyer for RERA has a deep understanding of both the acts (RERA and FEMA) and stands in a position to guide you better on your investment.
A NRI Lawyer for RERA, with his exclusive knowledge of RERA, must be appointed by both builders and buyers to have a better insights on the legal norms and legal implications of the act.
RERA was visioned to bring change in the real estate sector often country, and NRI Lawyers for RERA are the crusaders of this change. NRI Lawyers for RERA play a significant role in enlightening the NRI investors in understanding their rights and legal protection available to them.
RERA is a new act, that requires a thorough reading for proper knowledge. It is a new field with very few expert legal professionals available who master the act. At LexLords, we have a team of NRI Lawyers for RERA who have a detailed knowledge oft he provisions of the act. Our team of NRI Lawyers for RERA will guide you through the provision of the act and help you understand legal implications before entering any contract. And in the case of any dispute, these NRI Lawyers for RERA will assist you in settling the dispute, with all the possible means available.