Haryana RERA has declared that home buyers must buy the house based on carpet area. Thus, protecting and safeguarding the interest of the property buyers. It was mainly intended to avoid the possibility of buyer’s exploitation by developers.
It is important to consider the definition and understand the meaning of carpet area and saleable area according to the RERA:
Prior to reaching to the stage of buying or selling, RERA has made it mandatory for the promoter to register themselves as well as the project
As per the Maharashtra RERA, Section 3 of the Act, the promoter of an ongoing project shall not advertise, market, book, sell or offer for sale or invite persons to purchase in any manner any plot, apartment or building, unless he registers the project. In the ongoing projects, developers may still advertise but this could be subject to state rules.
Now, developers will also have to compulsorily register themselves as well as their projects with the authority. Unless they do so, they won’t be able to either advertise or sell their project. This will ensure better governance of the sector and also help buyers
Haryana RERA has included the above clauses in Sec.1, Chapter 3 of the Act.
Furthermore, it has also mentioned that the price of an apartment in a real estate project shall be charged by the promoter from the apartment buyers only on the basis of carpet area of the apartment. With regard to the price of the plot in any real estate project shall be charged by the promoter from the plot buyers only on the basis of per square meter of net usable area of the plot i.e. actual dimensions of plot.
If the plot area of the project is more than 500 sq.mtrs or the number of tenements to be developed exceeds 8, then it is mandatory that the promoter, as well as the project, have to be registered under RERA.
Prior to registering the developer, RERA has the process of conducting thorough due diligence. Some of the documents listed below:
Most developers tend to have multiple projects being developed simultaneously. Earlier, developers were allowed to transfer funds raised from one project to that of another. However, now under the RERA, a minimum of 70% of the homebuyers’ and investors’ money is kept in a separate account. These funds will then be allotted to the developer only for construction and land related costs only after certification by an engineer, a chartered accountant, and an architect.
Developers can only ask for up to 10% of the home’s cost as an advance payment towards booking the apartment before the sale agreement is signed.
RERA makes all the information available to homebuyers on their portal through a unique registration number allotted to the project.
Since the carpet area transaction has been introduced by RERA, home buyers get what they are promised. This makes it clear to them as to what they are paying for which was not the case when they when the transaction used to take place based on built-up area. Earlier, there was no standardization of the calculation of the area and the price asked for. However, RERA’s move of carpet area has brought the much-required standardization and accuracy. Now, the buyer will know his buying area precisely before construction as well as post-construction as RERA has established transparency throughout all the stages of the project.
For a buyer as well as the developer, RERA is a complete ecosystem comprising a detailed information portal as well as a strong grievance resolving interface.