The Real Estate industry is one of the most competitive industries with numerous builders offering the promise of a dream home to property buyers. Therefore in order to safeguard the rights of the homeowners and buyers and to make sure that they are not exploited by the builders/developers, the government enacted the RERA (Real Estate Regulations Act) in 2016.
Here are 10 major benefits that the new RERA Act provides the homeowners and property buyers
- ENHANCED TRANSPARENCY ABOUT BUILDING AND DEVELOPING LAND
RERA ensures a level of utmost transparency to Property Buyers and homeowners. It does so by making it mandatory for builders and developers to provide accurate, timely, and correct information about the building project so that the buyer has the leverage to make an informed decision while purchasing a property. Through this Act, the builder is required by law to disclose layout plans, timeline, and all legal permission. Based on this the buyer can develop trust in the project.
- GRIEVANCES ARE TO BE RESOLVED AT THE EARLIEST
If the buyer is not satisfied with the construction or has any problem with the flat, the buyer has the right to file a complaint in the Appellate Tribunal under the RERA Act. The tribunals will have to review your case within 60 days of the filing of the complaint. And if it fails to find an adequate solution for the complaint, it must explain why.
- CARPET AREA STANDARDIZATION
RERA has approved a nationwide measurement of carpet area upon which the real estate developers are allowed to sell the property. The Carpet area is the actual useable area within the walls of the flat, omitting the thickness of the walls. The price of any property is thus calculated, Cost of the Property = Carpet Area X Rate Per Square Feet. Thus making standardization for the carpet area in any property helps buyers from paying extra for common areas and balconies.
- PROMPTNESS IN THE PROJECT DELIVERY
One of the biggest advantages of the new RERA Act is to ensure timely delivery of the property by real estate developers to help buyers set realistic expectations for the delivery of the project.
- BUILDERS WILL BE HELD RESPONSIBLE FOR ANY DEFECT OR FAULT IN THE CONSTRUCTION
Under the RERA Act, if the buyers find any defect or fault in the construction of the project within 5 years of taking possession, the builder is liable to rectify the defect or the fault within 30 days of the complaint. If the builder fails to do so, the buyer has the right to demand compensation.
- THE PROVISION OF ADVANCEMENT PAYMENT
Before engaging in the sales agreement, the builder can only demand 10% and not more than that as an application fee. This provision in the Act is one of the major benefits for the buyer of any property.
- THE BUILDER/DEVELOPER REQUIRES ALL CLEARANCE BEFORE SELLING ANY PROPERTY
Under the RERA Act, a builder or a developer cannot sell a property before registering with the regulator, as well as disclosing every detail of the property to be sold. The builder/developer can thus only sell after the requisite clearance has been acquired.
- ELIMINATING FALSE ADVERTISEMENT
The RERA Act ensures that the builder or the developer cannot add misleading information while selling or promoting a property. All the information included in the promotional material has to be accurate and recorded with RERA before the builder begins to promote the property.
- THE BUILDER CAN NOT DIVERT THE FUNDS FROM ONE PROPERTY TO ANOTHER
The biggest setback for any property buyer when buying a property is the untimely delivery of their project or delay or late delivery. According to the new RERA Act, the developer must deposit 70% of the funds received from the buyer into an escrow account. The money will be deducted according to the stages of the building as approved by the building’s engineer and the project’s accountant.
- MORE STRUCTURE IN THE REAL ESTATE INDUSTRY
The new RERA Act has brought in an increased level of transparency and accountancy in the real estate industry. All the provisions under the Act provide more structure, resulting in the sector’s growth, and lower and regularized prices. This makes the industry more professional and secures the interest of both the investor and buyer.
