The Real Estate Regulatory Authority (RERA) Act was launched in 2016 to increase transparency in the house construction and buying process. The new RERA Act also lays out a detailed mechanism to deal with project delays, property pricing , quality of the projects, etc., transparently, putting the interests of the new home buyers at the centre.
If you’re buying a property in a newly constructed building and unfamiliar with the benefits of the Act, here are a few you should know about.
1. Stipulated advance payment
Builders usually charge an advance from buyers before starting a project. However, the RERA new rules prohibit builders from sourcing over 10% of building costs from the buyer as advance or application fees. This saves the buyer from the stress of shelling out large funds in a single go.
However, if you’re facing a shortage of funds to pay the builders an advance, you can also secure a home loan to reduce your financial stress.
2. A standardised method for measuring carpet area
Before the RERA Act, different builders had their own method of calculating the carpet area for their projects. This naturally brought inconsistency in property prices per carpet area.
Now, RERA specifies carpet area be calculated as the net usable floor area of an apartment, excluding the area covered under services shafts, external walls, exclusive balcony and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment. Due to this standardization, builders need to clarify the carpet area they offer, thereby affecting property prices.
Additional Read: Check out What RERA Act is in Real Estate and How Beneficial it is
3. Prompt real estate project completion
Earlier, redevelopment and real estate projects usually took years to complete and had been one of the biggest concerns of potential buyers. Now, a real estate developer needs to give a delivery date for handing over the apartment to their buyers under the RERA act or face penalties.
This is why you must only go for a RERA approved property. That way, you can swiftly clear the property valuation stage, which is a significant part of the home loan eligibility process.
4. Builder’s responsibility for defects in construction
According to the RERA Act, the builder is responsible for repairing or fixing any defects in a newly constructed apartment. This provision is valid for up to five years from the date of possession, and the repair must be completed within 30 days from detection. This saves you any repair costs incurred due to the builder’s negligence.
5. Quick grievance redressal
Buyers can approach RERA if they have any complaints regarding a real estate project, whether related to construction, transferring possession, or other issues. In case they aren’t satisfied by the RERA’s decision, they can also approach the Appellate Tribunal to file a complaint. Thus, you don’t have to worry in case the buying process doesn’t go through seamlessly.
Additional Read: A Comprehensive Guide for MahaRERA Registration
If you’re looking to buy property, ensure that it is RERA approved to receive benefits like speedy construction and redressals. You can also supplement your funds by securing a housing loan with Tata Capital.
Avail from a broad range of products, available at customisable terms and competitive rates. Visit our website to check your home loan eligibility.