When the Indian National Congress government introduced the Real Estate Regulatory Authority (RERA) in 2013, it started a change in the way home buyers and developers do business. Under RERA, it is now acceptable for home buyers and the real estate developer to cancel the sale agreement in case of a default by any of them. However, the RERA act also enables both parties to change the sales agreement, as long as both parties agree to the action. New home buyers and those who are continuously investing in villas in Coimbatore should be aware of the recent RERA. Agreement for the sale aims to prevent bias for either the buyer or the developer.
For home buyers, RERA enabled the total price of villas in Coimbatore to remain the same. Hence, there will be no increase in the price, and buyers do not have to worry about an escalation fee, unless competent authorities increase development charges. A home buyer can default by refusing to pay developers, and if the default persists for an agreed number of months, developers can cancel the allotment provided to the buyer and terminate the agreement. From there, developers can subtract the booking amount and the interest liabilities from the amount, which must be repaid to buyers.
If developers fail to complete villas in Coimbatore or they are able to provide the ‘ready to move’ notice within the stipulated time, home buyers can terminate their agreement, and they are entitled to a refund. The amount for the refund is the amount they paid with interest within 45 days of termination. If the buyer refuses to withdraw from the delayed project, he or she should be paid the interest until the project’s completion.
Keep in mind that the RERA act does not apply to certain situations, such as when the project development has been delayed due to war and acts of God like cyclone, floods, and drought, all of which are beyond the developer’s control.