Real estate has been a booming industry, yet it lacked transparency. Buying and selling properties wasn’t as transparent as they are now. The governing bodies decided to implement RERA (Real Estate Regulatory Authority) in 2017 to handle the hindrances it had a few years back.
The act was introduced to simplify the home buying process and bring transparency for those planning real estate investment, removing irregularities.
Here is an ultimate guide to RERA act
How did RERA transform the Real Estate Sector?
RERA, which stands for Real Estate Regulatory Authority, focuses on protecting homebuyers and boosting real estate investment. Since its creation, the act has contributed significantly to streamlining the process and building the real estate market in India.
Furthermore, it has helped accelerate new launches, buyer sentiments, quality construction, property appreciation, and transparent transactions. Besides, it also incited new project developments across the country. Developers were instructed to provide regular updates on project as well.
What are RERA advantages?
Since its implementation, RERA has brought many advantages. The foremost benefit that it has offered is the reduced delays. Now, buyers investing in commercial or residential projects don’t have to wait longer. Developers need to finish the project within the proposed timeline, or RERA will impose charges.
Here’s a list of benefits that RERA provides to real estate investors.
- RERA provides transparency. It has mandated developers to provide legitimate, accurate, and timely details related to the project to help buyers decide better.
- RERA strictly enforces the project deadline to avoid delays—any delays resulting from any reason force the developers to compensate the buyers.
- RERA is against misleading advertisements and ensures that no developers should advertise on false grounds.
- It empowers homebuyers to know every vital detail of the project they desire to invest in. They help get them the accurate information based on which investors make a decision.
- RERA also guides developers to provide the exact information regarding the carpet area. Developers have to disclose the exact price for the carpet area to make calculations easy for the buyers.
How does buyers get benefitted by RERA?
Standard pricing
Before RERA, developers used to calculate the carpet area price according to their suitability. After the implementation of RERA, they need to agree on a standardised price for the carpet area. This has made buyers more comfortable. They can estimate their cost and find ways to disburse it without any irregularities.
RTI accessibility
Builders registered with RERA need to disclose all the required legal papers regarding the project to the buyers. They need to provide them not only through the official website but also through offline means. They also need to follow a model sale agreement with the purchasers. 70% of the total cost they receive from the buyers needs to be deposited in another account. They can use this amount for construction purposes only.
This is where they stay away from money-laundering and misleading information. It also regulates the handing over process. In case of any discrepancy, buyers hold the right to ask for compensation.
No delay in the project
RERA-approved projects cannot be delayed. RERA guides developers in providing a fixed timeframe for possession. Those who fail this timeline get penalized. The developers are instructed to settle their disputes within 120 days of the complaint being filed. Home buyers get the flexibility to alter the timeline.
Conclusion
Before making a real estate investment, it’s important to check whether project comes under RERA. Residential projects under RERA simplify the whole process and reduce the hassles. It also protects the buyer’s interest and give them certain advantages. Projects like Jashn Elevate by Jashn Realty are great to consider in this regard.
