Understanding Mohali’s RERA Guidelines: What Every Buyer Should Know

1. What is RERA?

RERA was introduced to create a structured and regulated real estate environment by addressing issues like project delays, fraud, and mismanagement by developers. The Punjab RERA (PBRERA), which governs the real estate sector in Mohali, mandates developers to register their projects under RERA, providing detailed information to buyers about the project’s progress, timelines, and legal standing.

Under this act, both developers and buyers are accountable, ensuring transparency and fairness in all transactions related to property buying and selling.

2. RERA Registration: Ensuring Project Legitimacy

One of the key provisions under RERA is the mandatory registration of all residential and commercial projects with the regulatory authority. Before investing in a property in Mohali, buyers must check if the project is RERA-registered. A registered project means the developer has submitted all necessary documentation related to the land title, project plans, and financial status to the RERA authority, ensuring the project’s legitimacy.

To check the registration status, buyers can visit the Punjab RERA website and search for the specific project. This gives potential buyers access to detailed project information, including layout plans, deadlines, and ongoing updates.

3. Benefits of RERA for Buyers

RERA offers several benefits that safeguard the interests of buyers in Mohali’s real estate market:

• Timely Delivery: RERA mandates that developers complete projects within the committed timeframe. If the developer fails to meet deadlines, they are liable to pay penalties to the buyer, ensuring greater accountability.

• Transparency: Developers must provide full disclosure about the project, including approved layout plans, number of units, and legal clearances. This ensures that buyers are well-informed before making any decisions.

• Fair Pricing: The act ensures that buyers are only charged for the carpet area (the area within the walls of the apartment), and not the super built-up area, which typically includes shared spaces like staircases, lobby areas, etc.

• Advance Payments: Under RERA, builders cannot demand more than 10% of the property’s cost as an advance payment before signing a sale agreement, protecting buyers from financial exploitation.

• Defect Liability: If any structural defects or poor-quality construction arise within five years of possession, the developer is responsible for fixing these issues at no extra cost to the buyer.

4. Grievance Redressal: RERA Tribunal

Buyers in Mohali can now resolve disputes with developers through a RERA tribunal. This grievance redressal mechanism is one of the most significant benefits of RERA. Buyers can file complaints regarding project delays, construction quality, or misleading information, and the tribunal is obligated to resolve these disputes within 60 days.

In case of violation of the RERA guidelines, both the developer and the buyer are liable for penalties. This mechanism provides legal support and reassurance to buyers, giving them the confidence to invest in real estate without the fear of being cheated or misled.

5. Ongoing Project Disclosures

One of RERA’s standout features is the continuous monitoring of ongoing projects. Developers are required to update the project’s progress regularly on the PBRERA website. This includes details about the completion status, financial standing, and other key aspects.

As a buyer, you can easily track the status of the project and compare it to the promised delivery dates. This helps avoid the common issue of unexpected delays or stalled projects, providing buyers with more control over their investment.

6. Penalties for Non-Compliance

RERA has stringent penalties for developers who fail to comply with its regulations. Developers who do not register their projects under RERA or provide false information are subject to penalties that can go up to 10% of the project’s total cost. Moreover, in extreme cases, developers can face imprisonment.

This acts as a strong deterrent, ensuring that developers adhere to ethical business practices and deliver on their promises.

7. What Buyers Should Check Before Purchasing

Before purchasing any property in Mohali, buyers should take the following steps to ensure compliance with RERA guidelines:

• Check the RERA Registration: Confirm that the project is registered under Punjab RERA by visiting the official RERA website.

• Review the Carpet Area: Make sure you are only paying for the carpet area, as mandated by RERA.

• Demand Clear Timelines: Ensure that the developer has provided clear project completion timelines. Cross-check this with the RERA details.

• Understand the Sale Agreement: Thoroughly review the terms and conditions of the sale agreement, making sure they comply with RERA’s provisions on payment schedules and delivery timelines.
  

8. Impact of RERA on Mohali’s Real Estate Market

Since the implementation of RERA, Mohali’s real estate market has become more buyer-friendly, transparent, and secure. This has instilled greater confidence in buyers, leading to increased investments in the region. Developers are more cautious, ensuring they meet regulatory requirements and deliver quality projects on time.

As a result, Mohali’s real estate sector has witnessed stable growth, and RERA has helped create a healthy environment for both buyers and developers.

Conclusion

Understanding RERA guidelines is essential for any buyer looking to invest in Mohali’s real estate market. By offering transparency, timely project completion, and a robust grievance redressal mechanism, RERA ensures that buyers are protected from fraud and exploitation. Before investing, ensure that the property is RERA-compliant, and take full advantage of the safeguards provided under this act.

Invest smart, and let RERA be your guiding tool in securing your dream property in Mohali!