We had recently written an article on the rights of a homebuyer under RERA and explained the lesser-known rights that a home buyer had. But, the same RERA defines certain duties for a home buyer too.
RERA is all about striking the right balance between helping the buyer and developer. As we talk about the rules that the developers should follow, the duties of buyers are forgotten.
Here are some of the duties of a home buyer under RERA:
1. Duty to research before jumping in
Even though RERA protects the buyers in case of any legal tangles, it is always a good idea to be safe and take precautions. Before jumping into a deal with a developer, it is wise to go through every little detail to make sure that there is na sign of trouble.
Apart from just legal hurdles, as a home buyer you may have to check with the developer’s previous clients for their testimonial. This will give a practical insight into their work style and work ethics. Right from their handover schedule to the construction quality, everything has to be assessed in this pre-deal research.
2. Duty to make timely payments as agreed
As a homebuyer enters an agreement of sales with the developer, the homebuyer agrees to adhere to the payment schedule in that agreement. The agreement will also include registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent etc…
3. Duty to pay interest if needed
If the buyer breaches the contract and delays the payment to the developer, the buyer is entitled to pay interest for the delayed payment for that time period.
This is in line with the law that requires the developers to pay interest to the homebuyer if the project is delayed or the handover is delayed.
4. Duty to form or be a part of an association
The homebuyer or the property owner has a duty to be a part of a residents welfare association or federation. This will help the community to stand together and look after the welfare of the residents.
5. Duty to take possession within the prescribed time
The homebuyer has to take physical possession of the property within two months after the occupancy certificate was issued.
Positive effects of RERA on the Indian real estate industry
When RERA was introduced, it required states to set up their own RERA by drawing rules and regulations from the central law. ONce RERA happened every state set up their own RERA and devised rules and regulations that go with them.
Here are some of the positive impacts that RERA has on the real estate industry:
- RERA was aimed towards bringing the entire real estate industry under a specific set of rules that benefit both the buyers and developers.
- RERA brought transparency to the entire real estate industry and protected buyers from developers who were engaging in malpractices. Having an official body to monitor every stage of a property development has induced confidence in the buyers and it really had a positive impact on the entire industry.
- Implementation of RERA has stopped illegal launches by developers and ensures that all the necessary approval is in place before any big project launch.
- RERA made the buyers and developers more secure and understand every process involved in a property purchase.
- RERA made sure that a developer cannot take more than 10% of the cost of the project as an advance or application fees. This protected the buyer big time, since they were not forced to arrange large funds in a short span of time.
- Apart from all of the above mentioned points, this has given an opportunity for buyers and developers to resolve their disputes peacefully.
Real estate is an extremely important industry for driving the entire nation forward. RERA has brought about transformation of this all important industry and gained the trust of the buyers and developers alike.
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