Approximately 10 lakh people invest in property every year and around 76000 companies are working with the real estate sector of the country. Both these factors along with others are said to contribute towards approximately 9% GDP of the country, which is quite a considerable portion. In spite of this, real estate market in India has been an unorganized one for years Development also took place continuously but what grew in parallel was increasing number of complaints from buyers. As the redressal system was not in place the complaints kept piling up. It was in the year 2015 when the Real Estate Regulation bill was passed and in the year 2016 it was consolidated.
The act passed is fully compliant from 1 May 2017 onwards. It has brought a sense of relief not just for buyers but for the developers as well. It was observed that not just developers were at fault by delaying the project or demanding funds inappropriately from buyers or through other ways but buyers too, at times, were negligent of their duties and responsibilities that made developers suffer. So their responsibilities are too defined in the act.
Here are the 5 rules that buyers should abide by, as per the new Real Estate Regulation Act:
Making timely payments
Developers are most of the times dependant on the fund to be received from buyers to keep developments in their projects going. They suffer financially when buyers default. Therefore, it is the responsibility of buyers to make payments as mentioned in the agreement.
Besides, buyers are also liable to pay municipal taxes, registration charges, maintenance charges and other dues that are mandatorily to be paid on time.
Liable to pay interest/penalty
In case, a buyer defaults in making timely payments as agreed by him while signing the sale deed, he is liable to pay interest on the unpaid amount from the moment he has not paid the agreed amount till the time he pays the due amount.
The penalty is to be paid at 10% whosoever defaults. The rule applies not just for the buyer but for the developer as well if possession is delayed.
Take possession on time
If developer is bound to provide possession on time, it is also the responsibility of the buyer to accept it timely i.e. within two months of occupancy certificate is issued.
Taking equal responsibility for registration of conveyance deed
The developer, as agreed with the buyer, transfers the rights of the property once all the formalities and payments regarding the property in concern is complete. This process is executed through conveyance deed. When such an event takes place, it is equally the responsibility of the buyer as well that he participates in it and fulfills the requirements of the deed.
Participates in formation of the association of buyers/allottees
The onus of making a common association of buyers lies on buyers itself. This association can be called as federation, society or a co-operative society. Once formed, each buyer through association should actively participate in resolving common issues and get solutions for the common good.