As of August 2019, 43,000+ housing projects have been registered with the RERA Act across India. This Act is in accordance with the real estate reforms to lend in transparency in this sector. RERA body was launched with an aim that it would assist the implementation of rules and regulations in the real estate market.
Such initiatives on behalf of the Central Government and its implementation by state governments are a welcome gesture for property buyers.
Property buyers can benefit from the RERA act in the following aspects –
- Offers a standardised carpet area – Under RERA, there has been a standardisation of carpet area as per a specific formula. It mitigates chances of builders’ manipulating the cost of a property.
- Ensures a reduction in project delay – Real Estate Regulatory Authority Act (RERA full form) is stringent about the penalty charges in case of delayed projects.
- Offers homebuyers to report construction defects – Home buyers can report about any construction defect for up to 5 years post-handover and have their builder rectify them.
- Slashed advances – Builders are prohibited from taking more than 10% of the total cost of a property as advance. It curtails chances of unnecessary financial strain before property handover.
- Looks into discrepancies of your title deed – In case of title deed discrepancy, one can immediately ask his/her builder for compensation.
Property buyers can understand the RERA Act in India and look into its details to reap the benefits of this act. It needs to be done before purchasing a residential space considering the significant expenditure involved in this.
While home loans from reputed lenders will offer financial coverage required to buy a space, a better understanding of the RERA Act will help one make the most out of it.
Additional Read: What is the Function of RERA Act in Maharashtra?