Quick Guide to Understanding RERA and Its Benefits for Buyers Investing in the real estate industry is no more a risky decision with RERA Act 2016.
Investing in the real estate industry is no more a risky decision with RERA Act 2016. Real Estate Regulatory Authority (RERA) Act, passed in parliament and effective since May 2016 has brought transparency within the real estate services. The Act ensures to regulate the unorganized real estate sector in India facing serious frauds and irregularities by the developers across India. The Real Estate Regulatory Authority, of India framed strict provisions for the real estate and implemented it in all states. It has many serious provisions listed, some of the key ones are; RERA registration is obligatory for all builders, promoters, their projects, and brokers. All the residential and commercial projects larger than 500sqm, or eight apartments are to be registered with their state’s RERA before starting the project. Ongoing projects without Completion Certificates (CC), will have to file for registration within three months. The authority has to review the application within 30 days. If the registration request is accepted, the builders are asked to hand over all the relevant information about the project on RERA’s official website. No developer can deviate from the promises on submitted plans of construction, delivery, amenities, specifications, and facilities. RERA registered developer is required to update A to Z details of the project’s layout, finance, blueprint, and many other related documents that common home buyers can not even imagine. There is a penalty of 10 percent of the total project cost or imprisonment of up to three years is imposed if there is any failure in registering a project. Any real estate agency facilitating the sale of the construction projects, are also obligated to register themselves with RERA.
Undoubtedly, the BUYER The Act protects the interest of real estate buyers and to establish a mechanism for speedy redressal to disputes. Here listed some major benefits of the RERA Act for home buyers; All the project details, including layout plans, govt approvals, and completion schedules of the project can be easily accessed by the buyer on the RERA website. Any advance payment collected by the builder will be maintained in a separate bank account that is to be used only for the project’s construction. Any delay in project completion imposes a penalty on the developer. Buyers are entitled to buy properties based on the carpet area. The Act provides a defect liability clause of 5 years. Any grievance/ complaint has to be resolved by the state’s RERA within 60 days. Non-registered projects cannot be offered for sale, booking, or promotion. As the Real Estate Regulatory Authority managed to define boundaries by laying down the do’s and don’ts by the promoters and real estate agents, this helped in instilling buyer confidence. The real estate sector did feel the pinch in the initial months since the implementation of the RERA ACT, however, gradually the industry is seeing a huge surge in commercial and residential building sales.