Safeguarding homebuyers in Haryana: HRERA caps advance money for units at 10%

Gurugram, January 16

In what comes as a major safeguard for homebuyers, the Haryana Real Estate Regulatory Authority (HRERA),Gurugram, has restricted advance payment for units to a maximum of 10 per cent. The authority has issued orders in this regard 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.

Buyers at receiving end

In many cases in RERA, we observe that the homebuyers are made to pay a hefty sum in advance, which, at times, is their total savings. The builders then abort projects. With a huge amount of money stuck, the homebuyers suffer a big blow. Praveen Singh, A Realtor

Specify project details in sale pact

• The RERA Act stipulates that no promoter will accept a sum exceeding 10 per cent of the cost of the apartment, plot, or building without a written agreement for the sale and registration of the agreement
• The sale agreement should specify various project particulars, payment details, possession date and other relevant information, as prescribed under the Act

The RERA Act stipulates that no promoter will accept a sum exceeding 10 per cent of the cost of the apartment, plot, or building without a written agreement for the sale and registration of the said agreement. Furthermore, the agreement for the sale should specify various project particulars, payment details, possession date, and other relevant information, as prescribed under the Act.

“All prospective and existing allottees are, hereby, informed about the regulations governing the acceptance of advance payment or application fee for the real estate projects. All allottees are advised to take note of the aforementioned regulations when purchasing any unit/plot/apartment for residential/commercial/industrial/IT/any other usage,” reads the order. According to experts, the order will be an extra safety cap for the homebuyers who are often duped by developers.

“In many cases in RERA, we observe that the homebuyers are made to pay a hefty sum in advance, which, at times, is their total savings. The builders then abort projects or never begin them. With a huge amount of money stuck, the homebuyers receive a bigger blow,” said Praveen Singh, a realty expert.