Registration of Agreement under RERA: An Essential Step for Real Estate Buyers and Builders
The Real Estate (Regulation and Development) Act, 2016, also known as RERA, has been introduced to regulate and promote transparency in the real estate sector. One of the critical aspects of the Act is the registration of property agreements, which offers several benefits to both the builders and buyers. In this article, we will discuss the significance of the registration of agreement under RERA.
What is RERA?
RERA aims to provide a transparent and efficient system for the real estate sector and protect the interests of buyers. The Act makes it mandatory for builders to submit detailed information about their projects, including the land title, construction plan, and financial details, to the regulatory authority. It also ensures timely possession of the property to buyers, and in case of any delays, the builder is liable to pay compensation.
What is the Registration of Agreement under RERA?
Under RERA, developers and buyers need to register their agreement with the regulatory authority in the state. The agreement must contain details such as the carpet area, the delivery date of the project, and the price at which the property is being sold. Every agreement between the builder and buyer must be registered with RERA to get the benefits of the Act.
Benefits of Registration of Agreement under RERA
Registration of agreement under RERA offers several benefits to both the builder and the buyer. Let`s understand them in detail:
Benefits for the Builders:
1. Legally Binding: Registration of agreement under RERA makes it legally binding on both the parties. The builder cannot make any changes to the agreement without the consent of the buyer after registration.
2. Timely Payment: Registration of agreement under RERA ensures timely payment of the property by the buyer. The agreement mentions the delivery date, and the builder is liable to pay compensation in case of any delays, ensuring that the buyer gets timely possession of the property.
3. Transparency: RERA ensures transparency in the real estate sector. The registration process ensures that the agreement contains all the essential details, and there is no room for ambiguity.
Benefits for the Buyers:
1. Protection: Registration of agreement under RERA provides protection to the buyers. The builder cannot make any changes to the plans or designs without the consent of the buyer after registration.
2. Timely Delivery: RERA ensures timely delivery of the property to the buyer. The agreement mentions the delivery date, and the builder is liable to pay compensation in case of any delays, ensuring that the buyer gets timely possession of the property.
3. Transparency: RERA ensures transparency in the real estate sector. The registration process ensures that the agreement contains all the essential details, and there is no room for ambiguity.
Conclusion
Registration of agreement under RERA is an essential step for builders and buyers. It ensures transparency, timely possession, and protection for both parties. The registration process is straightforward, and builders and buyers must ensure that the agreement is registered with the regulatory authority to avoid any disputes in the future. As a professional, I highly recommend real estate builders and buyers consider registering their agreements under RERA to avail of the benefits and avoid any legal issues.