If you wish to invest in real estate soon, then you must be aware of the RERA Act. Therefore, you can use this article as a resource to learn all the RERA rules you need to know. The Real Estate Registration Act was passed in 2016 to benefit buyers by protecting their homebuying rights against unfair builder practices and to continue the real estate business lawfully. As a result, the transactions between the buyer and the seller turn out to be reasonable and fair. Run down a quick list of RERA rules and benefits before you fall into any illegal practice.
RERA Benefits for Homebuyers
- In terms of carpet area, purchasers will receive what they pay for. So that no homebuyer could be duped by contractors who make exaggerated claims about larger carpet areas before hiding behind technical jargon.
- The buyers would be able to access all the project information and progress reports on RERA websites, making them aware of every stage of construction.
- Since RERA allows homebuyers to share opinions, seek guidance, and discuss issues, the government has decided to launch a uniform online platform for RERA authorities of all states.
- In the event of a buyer’s payment default, the builder would charge the customer a high-interest rate. However, if the builder delayed the project, he would charge the buyer a lower interest rate. Both parties are now subject to the same interest rates.
Benefits of RERA to Developers
- The buyers are required to move into the house within two months of receiving the occupancy certificate. Builders will benefit from this because it will result in fewer vacant properties.
- The RERA Act requires buyers to make consistent payments for items such as registration fees, maintenance fees, taxes, installment payments, water, and electricity fees, etc. For builders, who had to frequently take the burden of missed payments, this was a comfort.
- Because there will be fewer dishonest and unreliable builders to cause the expanding industry to be otherwise unorganized, the real estate sector will be more organized. Such a spring cleaning will boost customer confidence in the builders and the reputation of all registered developers.
- Since 70% of the funds will be appropriately invested in the project and not transferred to other projects, there will be fewer instances of insolvency and bankruptcy among developers.
Prominent Features of RERA
- Any alterations to the property’s layout or design must first receive approval from the authorities and (two-thirds) of the allottees.
- The act outlines certain guidelines regarding the carpet area (usable area within the walls). The super built-up space is not included in the price; only the carpet area is included.
- Both the buyer and the seller will be required to pay the same interest in the event of a delay, which is 2% higher than SBI’s margin cost (funds-based) lending rate.
- Residents have a year to notify the builder of any problems or flaws in the structure, and the builder is then obligated to make any necessary repairs for free within five years of possession.
- Under RERA, the property agreement must include a certain date for the project’s completion, and tight guidelines must be followed to ensure that it is completed on schedule.
In a nutshell, the above-mentioned are some important RERA benefits for home buyers,which surely improve transparency and help you buy your dream property with ease. Therefore, you can always check out Indextap for an extensive array of top properties in MMR that are listed for sale and rental purposes.
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