In the dynamic landscape of real estate, it is imperative for both developers and buyers to adhere to a set of regulations that ensure transparency, fairness, and accountability. The Real Estate Regulatory Authority (RERA) plays a pivotal role in establishing these rules, and Chhattisgarh RERA has formulated a comprehensive framework to safeguard the interests of all stakeholders involved in real estate transactions. In this article, we delve into the key aspects of Chhattisgarh RERA rules that foster a harmonious environment in the real estate sector.
Interest Penalty on Project Delay
One of the fundamental principles of Chhattisgarh RERA is its provision for interest penalties in cases of project delays. Developers are obligated to pay interest for any delay in handing over possession of an apartment, plot, or building, as stipulated in the agreement for sale. This mechanism holds developers accountable and encourages timely project completion. The interest is calculated on a monthly basis, as outlined in the terms of the sale agreement, thus motivating developers to adhere to project timelines.
Refund in Case of Non-Completion
Chhattisgarh RERA also addresses the concerns of buyers by offering them protection in the event of non-completion of a project. Buyers have the right to receive a complete refund of the amount paid along with accrued interest. This provision instills confidence in buyers, assuring them that their investments are safeguarded even in the face of unforeseen circumstances.
Transparency through Sharing Project Updates
Developers are required to maintain transparency by providing quarterly updates on the progress of all registered projects under Chhattisgarh RERA. This mandate ensures that buyers and investors are well-informed about the status of the projects they have invested in. The regular updates create a sense of trust between developers and buyers, ultimately benefiting both parties.
Cap on Advance Deposit
To prevent unfair practices and protect buyers' interests, Chhattisgarh RERA imposes a cap on the advance payment that builders can accept. Builders are not permitted to collect more than 10% of the total property cost as advance payment without executing a comprehensive agreement for sale. This regulation safeguards buyers from overcommitting financially before necessary legal formalities are completed.
Escrow Account Rules for Financial Security
Financial accountability is a cornerstone of Chhattisgarh RERA's framework. Developers are required to deposit a significant portion—70%—of the funds collected from buyers into an escrow account. This measure ensures that the funds are dedicated solely to land acquisition and construction-related expenses. This financial segregation promotes transparency and minimizes the risk of misappropriation.
Adherence to Project Advertisement Rules
Chhattisgarh RERA mandates developers to align their project advertisements and prospectus with the information provided on RERA's official portal. This rule guarantees that buyers receive accurate and consistent details about the facilities and amenities offered by a project. Such transparency reduces misinformation and prevents misleading marketing practices.
Penalties for Non-Registration by Real Estate Agents
Real estate agents play a pivotal role in property transactions, and Chhattisgarh RERA recognizes their significance by imposing penalties for non-registration. Agents failing to register with CG RERA are liable to pay a daily penalty of Rs 100,000. Furthermore, the penalty ceiling is set at 5% of the project's cost if it is sold without the requisite registration number. This measure encourages agents to operate within the legal framework, enhancing buyer confidence.
In conclusion, Chhattisgarh RERA's comprehensive set of rules promotes accountability, transparency, and fairness in the real estate sector. From interest penalties for project delays to refund guarantees and financial safeguards, these regulations prioritize the interests of both developers and buyers. By embracing these rules, the real estate industry in Chhattisgarh can evolve into a transparent and trustworthy ecosystem that benefits all stakeholders.
Note: The information provided in this article about Real Estate Regulatory Authority is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances.
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