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HOME BUYER IS KING

Are you well-versed with the new reformatory policies that have come into force? If not, here is a checklist that could help you seal the deal

Kirti and Ayush Rathod booked a 2-BHK flat in 2009 in a plush locale. However, their possession was deferred thrice. As a result, they not only had to pay the EMI (read: since they had taken a loan), but also bear the brunt of delayed possession by paying the rent. This is not a case study in isolation. Such cases have been aplenty in the past.

However, the situation is a tad bit different now. Revolutionary policy reforms like Real Estate (Regulation & Development) Act (RERA) and GST are now acting as a shield for the home-buyers against erring developers. Nevertheless, experts feel that home-buyers must know how to avail their rights.

10 RERA GUIDELINES FOR HOME-BUYERS

  • All home-buyers must seek the RERA registration number;
  • Visit the RERA website of the respective statesunion territories to check if the developer is registered with the regulator;
  • Disclosure of all details: The website will be updated and equipped with all details (that include aspects related to sanctioned plans, layout, approvals, etc). Hence, verify;
  • Track-record: It is mandatory for the realtor to make all his projects public of the last five years;
  • Carpet area: RERA defines the carpet area as the net usable area (which excludes the balcony, verandah and terrace) that includes area within internal walls;
  • Lodge your complaints: Homebuyers will have an option of filing complaints against developers and real estate agents in the consumer court or to RERA authority;
  • Escrow account: Developers will now deposit 70 per cent of collection from customers into a separate account, which will be used for payments towards land and construction cost;
  • Timely possession: The buyers would be entitled to a compensation in case the project gets delayed beyond the possession date declared at the time of registration. Hence, timely delivery is assured;
  • Status of the project: Promoters will post quarterly updates of progress of projects on the website for public viewing, which will give the homebuyers a clear idea of the progress of the project;
  • No alteration in plan: A developer cannot make any changes in sanctioned plan. In short, your home must look like a sample flat. The developer requires most buyers’ consent before making changes, if any.

GST BOOST FOR HOME-BUYERS

A complex tax structure will be replaced by a unified 18 per cent slab; There are no other taxes like VAT or service tax; As developers will get input credit, it must be passed on to the buyers; GST in all probability should not have an impact on the stamp duty charges; While construction materials are placed in 28 per cent slab, residential projects under Pradhan Mantri Awas Yojna (PMAY) have been exempted from this slab; GST rate on under construction properties is fixed at 12 per cent; Completed and ready-to move-in properties are out of the GST purview.

Source : The Times of Group (Bangalore)

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Santosh Kenchaamba

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