Developers Can’t Demand Advance of Over 10% for Property, Says Rera

Developers Can’t Demand Advance of Over 10% for Property, Says Rera

The Haryana Real Estate Regulatory Authority (H-Rera) has warned developers not to accept advance payments or application fees of more than 10% of the cost of the apartment, plot or building.

New H-Rera chief Arun Kumar on Tuesday said no promoter shall accept a sum exceeding 10% of the property cost without a written agreement for sale and registration of this agreement as per the norms.

Kumar further directed developers to specify project particulars, payment details, possession date, and other relevant information in the sale agreement (builder-buyer agreement) as prescribed under the Rera Act.

In his statement, the Rera chief said homebuyers should diligently check such details before investing in any property.

“In accordance with Section 13(1) of the Rera Act, 2016 and Rule 8 (1) of the Haryana Real Estate (Regulation and Development) Rules, 2017, all prospective and existing allottees are hereby informed about the regulations governing the acceptance of advance payment or application fee for real estate projects. The Rera Act, 2016 stipulates that no promoter shall accept a sum exceeding 10% of the cost of the apartment, plot, or building without a written agreement for sale and registration of the said agreement. Furthermore, the agreement for sale should specify various project particulars, payment details, possession date, and other relevant information as prescribed under the Act,” he said.

The advisory comes in response to several complaints by buyers about developers demanding “excessive” amounts as advance payments. Some buyers have been asked to pay more than 10% in advance, while others have been asked to make payments before the sale agreement is signed, investors complained.

Kumar said H-Rera aims to ensure accountability and transparency in transactions and dealings between developers and homebuyers.

Taking serious note of advertisements of unregistered real estate projects across the city,

Kumar last week cautioned prospective homebuyers not to buy or book properties in projects not registered with the authority.

He said Section 3 of the Rera Act lays down stringent punishment for advertisements of unregistered real estate projects in any capacity. Similarly, Section 9 states a person must register with Rera before facilitating sale or purchase in registered projects.

Kumar further said the authority is closely scanning every such advertisement. “Sale and purchase of properties in unregistered real estate projects is not allowed under the Rera Act, the main objective of which is to protect the interest of the buyers/allottees,” he said.

Source : TOI

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