Everything you need to know about RERA compliance
The Real Estate (Regulation & Development) Act of 2016 proposes to create a Real Estate Regulatory Authority to govern and encourage the real estate industry. The Act's major goal is to protect buyers' interests and encourage prompt delivery of assets or projects.
All projects with more than 500 square metres of land or at least eight flats, including those that have not yet received a completion or occupancy certificate, must be listed.
Clients can find this information via the RERA websites. Builders must disclose facts including layout plan, project plan, approvals, promoters, land title statuscontractors, architects, and date of completion with the State RERA.
Registration for RERA Project:
RERA requires all residential and commercial real estate projects with a land area of more than 500 square metres or eight flats to register with the authority before beginning construction.
Each promoter must submit an application to the administration for real estate project certification.
Projects that were in the works at the time of the act's inception and for which a certificate of completion had not been obtained must register with RERA.
A fine will be imposed if a real estate project fails to register a property.
Benefits of RERA Act for HOME BUYERS
- The Right to Know About the Property: This is one of the key benefits of the RERA act in the buyer's favour. This knowledge can assist you in a variety of ways. The builder has the right to share all project details, such as the execution, plan layout, completion stages, competition status, and much more.
- Carpet Area That Is Standardized: Each builder used his own equation for determining a property's carpet area. However, RERA has a defined method for calculating carpet area.
- Builders will be held liable for any flaws or defects in the structure: If there is a problem or fault in the building of your flat, the real estate developer is responsible for correcting it under the RERA statute. For up to 5 years from the date of possession, this is for a structural problem in the property. When a fault is discovered, it must be repaired within 30 days.
- Building Contractors Won't Be Able to Postpone Projects: Each property developer is required to specify a due date for the flat possessions under the new RERA act of 2016. And if the builder fails to finish the project by that deadline, they will be subject to a slew of fines.
- Advance Payments: Before engaging into a sales agreement, a builder cannot collect more than 10% of the cost of the Flat as an advance or application fees. This is one of Rera's most significant advantages.
- Reduced Real Estate Prices: When the RERA Act takes effect in 2016, it will have a direct influence on the price of a home, land, and the interest rate on your home loan. Trust and openness in the real estate industry have improved as a result of the RERA statute. The real estate sector has also seen an uptick in investment. All of these factors contribute to the sector's growth, and increased demand is gradually lowering prices and, as a result, the interest rate on home loans.
Final Words:
RERA's advantages are not restricted to homeowners; it also assists builders and realtors in a variety of ways. The RERA Act is making the real estate industry more efficient and trustworthy for both buyers and investors. Finally, make sure you purchase a project that has been approved by a regulatory organisation!