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What is RERA and Its benefits for Property Buyers?

An important aspect of buying or selling property in India is the requirement of a RERA registration certificate. This law will also allow real estate consultants to guide your decisions. Buyers must know that the sale deed they are signing has been registered with RERA. At the same time, sellers should ensure that the property they sell is RERA-registered before entering into negotiations. It can help them avoid any hassles later due to unregistered sale deeds

What is the RERA?

RERA is the acronym for Real Estate (Regulations & Development) Act and was adopted in 2016 to protect the interests of homeowners. The primary goal behind RERA is to offer buyers relief from builders’ unfair practices..

It has granted various rights to home buyers and outlined specific rules and regulations that must be adhered to by all builders/homebuyers.

Major Benefits of the RERA Act

#1 — STANDARDIZED CARPET AREA

Before RERA implementation, the carpet area on which builders charge clients for the property needed to be properly defined. This law states that carpet includes the net floor area of the apartment (i.e. excluding any exterior walls and some areas for specific services, like a balcony or verandah).

#2 — ADVANCE PAYMENT

For buyers, there is a lot to like about this act. It forbids builders from making more than 10% of the apartment’s cost as an advance payment before signing the contract.

#3 — TOTAL TRANSPARENCY

The RERA act has made it mandatory for builders to provide total transparency. To do so, they must disclose major & minor aspects of their project and make sure that homebuyers are aware of them.

#4 — BUILDERS WON’T BE ABLE TO DELAY THE PROJECTS

Under the new RERA regime, not getting possession of apartments from the builder will not be a problem. Builders failing to deliver residential properties in time will be asked to pay an interest rate of 2% above SBI’s lending rate to the home buyers.

#5 — REDUCES THE RISK OF BUILDER’S INSOLVENCY/ BANKRUPTCY

Builders traditionally have some projects in progress at the same time. They might use funds from one project to finance another. With the benefits of RERA 2016 in action, builders are liable to deposit 70% of the upfront funds for a project into a single account.

#6 — BUILDER’S RESPONSIBILITY FOR FAULT IN THE CONSTRUCTION

Under RERA, any structural defect in a property handed over for less than five years will have to be repaired by the builder. They’ll have 30 days to fix it.

CONCLUSION

RERA ensures all regulatory and legal compliances and brings transparency and accountability while removing disputes in land ownership between the developer and buyers. Ensure your choice of real estate consulting services is right for what you need, as not only are they able to help you work through this process.