Home buyers who had hoped that work on their delayed best property in India would be fast tracked thanks to the RERA may have reasons to be concerned. Experts feel that buyers who had purchased houses in projects on which work has stalled or stopped because of legal issues may not experience any benign impact due to the Real Estate Regulatory Act. Furthermore there may also be no relief to homebuyers who had been hoped to receive their home speedily post RERA led enforcement in cases where the builder responsible for the project had used up all the money designated for the project.
RERA’s Is Geared Towards the Future
The goal of the RERA may in fact be to make home buying in the future a more transparent and speedier process, it’s power to serve buyers who had invested in undelivered projects in the past is less visible. Due to disclosures about projects by promoters after RERA has come into force, buyers will be able to make more informed decisions.
Promoters Have Option to Extend Completion Date
Under the RERA, promoters have the option to extend the date of ongoing projects while promoters register such projects. While the law requires that all ongoing projects must be registered with the state regulator before July 31, the law still empowers the builder to extend the deadline of the ongoing project while he registers the project with the state regulator.
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The newly established Maharashtra State Regulators website has stated that while a promoter registers a project, the revised date of the projects completion must be provided. This revised date must correspond with the work that has thus far been completed on the project. Hence, realistically a project that is only week away from completion cannot ask for a revised completion date of several months or a year.
Experts have commented on real estate sites that by providing an extension date to promoters when they register their projects, promoters are in effect being granted a fresh extension on projects that are delayed or projects that are about to be delayed.
The Problem for Home Buyers
If a builders inaction has led to delays on a yet to be completed project; home buyers who seek action against such a builder using the RERA will discover that the RERA has no clause to help them deal with such a scenario. Additionally if builders have been unable to complete projects despite receiving funds from buyers for partially or fully completed units, under the RERA, builders are eligible to seek an extension on the project while they register the project.
In case buyers had hoped for a swift resolution to projects that had been delayed due to legal issues, they will be disappointed as the builders, under the RERA will have to disclose the status and delays on past projects in accordance with the RERA.
Home buyers who have thus far been suffering under the burden of EMI’s paid for delayed projects may not find an immediate respite due to the RERA. According to this property website, home buyers who have yet to receive ownership of fully or partially paid for homes may have no recourse but to approach the District, State, or National Consumer Forum to vent their grievances.
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