Chandigarh
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In a pivotal move to enhance consumer protection and curb potential risks for homebuyers, the Haryana Real Estate Regulatory Authority (HRERA), Gurugram, has issued a landmark order imposing a 10% cap on advance payments for property units. This decision aligns with Section 13(1) of the RERA Act, 2016, and Rule 8 (1) of the Haryana Real Estate (Regulation and Development) Rules, 2017.

Significance of the HRERA Order: The directive from HRERA restricts developers from accepting advance payments exceeding 10% of the total cost of the apartment, plot, or building without a written agreement for sale and the subsequent registration of the agreement. This regulation aims to safeguard the interests of homebuyers and promote transparency in real estate transactions.

According to the RERA Act, the agreement for sale should comprehensively outline project particulars, payment details, possession date, and other relevant information. This proactive measure ensures that homebuyers have clarity and legal protection when entering into property transactions.

Advisory to Allottees: HRERA has issued a clear advisory to both prospective and existing allottees, emphasizing the regulations governing advance payments and application fees for real estate projects. The order serves as an important reminder for homebuyers to be vigilant and informed when engaging in property transactions.

Impact on Homebuyers: Real estate experts have hailed this decision as an additional safety net for homebuyers who often face challenges related to hefty advance payments. Instances of developers abandoning projects after substantial advance payments have left homebuyers in precarious situations. The 10% cap serves as a preventive measure to mitigate such risks and protect the financial interests of homebuyers.

Praveen Singh, a realty expert, commented on the significance of this order: “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.”

Conclusion: The HRERA’s decision to limit advance payments to 10% underscores its commitment to ensuring fair and secure transactions in the real estate sector. Homebuyers in Haryana can now proceed with increased confidence, knowing that their financial investments are subject to reasonable and regulated terms.

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