The RERA has come up with a wide range of clauses last year. Well, if you are going for a property deal that is not regulated by RERA, you can land up in problems. It is necessary for homebuyers to consider this aspect before going for any under-construction project. Make sure that the project is registered with RERA (Real Estate Regulatory Authority). Last year, the regulatory body was formed in most of the states in India. The objective of RERA is to protect the interests of the property buyers. All real estate projects had to be registered with RERA by July, 2017. Buying a RERA-registered project will safeguard your interests.
In case you invest in a project that is not registered with RERA, you might face difficulties when you file a complaint. These buyers remain on the weak side, as they have purchased a property that has not been registered with RERA.
Have a look at the benefits that homebuyers can get, when they purchase a RERA-registered property.
- The developer is bound to deliver all the aspects that had been promised. Every detail of the project has to be disclosed by the builder to the homeowners. This includes the carpet areas of the units, number of units and so on.
- 70% of the funds received by the developers from the homeowners have to be transformed to the escrow account. This indicates, that the money will not be used to develop other projects.
- The homebuyers need to pay only for the carpet area in the building. The developers cannot charge extra amounts for super-build-up areas.
- Only after making the necessary clearances, the developers can sell the projects.
- The project should have all the specifications and amenities as promised by the developer. No changes can be made in these areas, unless gets a written consent from the buyers.
- The builder has to repair any structural defect in the building for the next five years, from the time of acquisition by the homeowner.
- In case the completion of the project is delayed, the developers have to pay an interest to the consumer, which will be same as the EMI that the consumer is paying to the bank.
- If the buyer comes across any deficiency in the project, he can contact the real estate company in written, within one year of acquisition for after-sales services.
RERA has brought about a fool-proof mechanism in buying property. This has increased the transparency in the real estate industry. Therefore, you must approach the developers who have got their projects registered with RERA. This will make it easier for them to get their problems resolved, if anything creeps up in future. The developers need to quote the registration number with RERA in all sorts of promotional materials. This indicates, unless the company acquires the RERA registration number, the project cannot be advertised. These regulations are likely to work well in favour of the homeowners, who can seek the necessary help from RERA if they face any sort of issue with the project.
