Are you considering buying a RERA registered property but wondering what is RERA?
The Real Estate Regulation and Development Act (RERA) was introduced in 2016 by the Government of India to protect the interests of property buyers. Under this Act, the Real Estate Regulatory Authority – RERA was established. The Act was instituted to establish transparency and accountability on the part of developers in the real estate industry.
What is RERA registration?
Under the purview of the Act, all ongoing and under-construction projects that have not received a completion certificate, need to get registered with the authority. According to Section 3 of the Act, no developer or promoter is allowed to book, promote, sell or offer to sell property in any real estate project without getting it registered with theReal Estate Regulatory Authority.
However, RERA registration is only for ongoing projects that haven’t been issued a certificate of completion.
Additional Read: Difference between a RERA registered builder and others
Benefits of RERA for buyers
The main objective of RERA Act is to safeguard the interest of home buyers. With stringent rules, there is no scope left for developers to dupe their customers. Read ahead to check out how RERA registration benefits you.
• Increased transparency
It has become mandatory now for developers to register all property withRERA. All the details about the property have to be updated regularly. This has eradicated the problem of lack of information and misinformation. Further, the developers are not allowed to attempt a change in construction unless it is consented by two-third of the homebuyers. This protects you from any structural changes made without your consent.
• Fair pricing
Earlier, each developer had a different method of calculating the carpet area. This would lead to arbitrary pricing. After RERA registration has been made compulsory, everyone has to follow a standardized method of calculating carpet area. Additionally, developers are only allowed to take 10% as advance payment.
• Reduced Delays
The developers are required to update all the details regarding the project on the RERA website. This helps buyers monitor the project timeline. Besides, the developers are liable to pay an interest of 2% over SBI’s MCLR for the period of delay.
• Higher accountability
To avoid misuse of buyers’ funds, 70% of the money collected from buyers towards a particular project is to be deposited into a single account. Further, this money can be used only for construction of the specific project. Within 5 years, developers need to repair any construction defects reported. Under the RERA Act, buyers can also ask for compensation if there is any inconsistency with the title deed at the time of possession.
Additional Read: How to Find Out if Your Home Builder is RERA Registered?
• Resolution of disputes
The developers are required to resolve any disputes filed by the buyers within 120 days of such a dispute being filed.
With RERA registration acting as saviour, now is a good time to buy your dream house. While RERA streamlines the development process for builders, we streamline the loan process for you. Tata Capital brings to you, hassle-free, cost-effective home loans starting at just 6.70% per annum. When taking home loans from Tata Capital, check your home loan eligibility and monthly payments with our home loan EMI calculator to be aware of your housing needs.
Not only do we ensure minimal documentation, but our process also runs fast to save you from the long and tedious process of loan approval. Need an easy home loan? Get it with Tata Capital!