The central government passed the Real Estate (Regulation and Development) Act on 10th March 2016 to address the issues faced by the property buyers. Under the purview of this act, you can complain against a real estate developer on the grounds of cheating or delay owing to your property purchase. This move thus promotes more transparency and accountability from the developer’s side; while you can be assured that your property investment is completely fool-proof. Assisted by RERA, your grievances will fetch an easy resolution too. This act provides a measure of relief for homebuyers like you, and here are the benefits you can avail with RERA:
Higher level of transparency
Lack of clarity and transparency was a severe problem in the domestic real estate market and was a constant cause of worry until RERA came into action. Earlier, the promoters for each housing project would promote and market the project regardless of its authenticity. However, with the introduction of RERA, you have the scope to question each step the developer takes during the entire process of development and promotion.
RERA has made it mandatory for developers to register all real estate projects with the regulator, whether the project is residential or commercial. In addition, developers are now entitled to give you detailed information about the status of the project at every step, and you can complain against them in case they fail to abide by the timeline or falsify details. The Act has also streamlined the process further. So, developers cannot attempt a change in the construction until at least two-thirds of the homebuyers have consented to the same. This protects you against facing any structural changes or modifications of the property you have booked without notice.
As a first-time homebuyer, you can benefit from the transparency brought about by RERA by investing in both ongoing and new real estate projects. RERA protects you against the wrongdoings of the developer; you can take the next step of finding the right housing finance for yourself. Avail an affordable Home Loan from Bajaj Finserv to get a sanction of up to Rs. 5 crore* to purchase your dream home.
Better adherence to Law and Order
Regulatory authorities had almost no power until RERA was passed. So, real estate developers used this flaw to draw extra funds from homebuyers and misuse the same by redirecting the funds into another project. But RERA brings the Real Estate Regulatory Authority into action in each state and union territory. The legal function of this authority includes protecting your interest, understanding and solving grievances fast, and standardising a model sale agreement for you.
RERA and the Authority also specify that the developers cannot take anything more than 10% as a down payment or as a booking advance from you towards your home purchase unless they enter into a registered sale agreement with you. The non-compliance with any provisions set out by RERA will cause the developer to face a penalty or imprisonment of up to 3 years. Also, according to the Central Act, you must register any project where the developed area exceeds 500 square metres or more than 8 apartments with the RERA of that particular state.
Higher level of accountability
This Act requires developers to park 70% of the funds paid towards a particular project into a single account. Further, they are allowed to use these funds only to pay the land costs or construction costs of that project. This makes the developer take responsibility for the money he is getting from you, keeping your money in your project. In return, you can keep track of the developments happening with your invested property at each stage by visiting the RERA website. The regulation body also makes it mandatory for the promoter to make periodic report submissions to the regulator regarding the progress of the project. RERA focuses on ease, and you can conveniently reap the benefits by investing in a property in this new climate where accountability and transparency abound.
Reduction in prices of Real Estate
RERA coming into action also directly impacts the price of the home and land and the interest rate of your home loan. With improved trust and transparency, investment within the real estate sector has increased. This signals growth for the sector, and higher demand is slowly pushing down the prices and, thereby, the interest rates on home loans. With RERA at your rescue, it is just the right time for you to opt for a hassle-free home loan and start your journey as a homeowner.
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