19 Jun Advantages of the RERA Act

RERA or Real Estate Regulation Act was implemented to provide transparency in the Real Estate Sector and boost the real estate investments in India.

Have a look at advantages of the RERA Act.

Right to Information About the Property: This is one main advantage of the RERA act in favor of the home buyer. This information can help you on multiple fronts. The developer is entitled to share all the details regarding the project such as plan layout, plan of execution, completion stages, the status of competition, etc.

Builders Won’t Be Able to Delay the Projects: Under this Benefit of new RERA act. 2016, each property developer have to give a due date of the possessions of the flat.
And if the developer is not able to complete the project until that date, then they will have to face many penalties. If the developer failed to give possession on the given date then the buyer has the following options
• To withdraw from the project – wherein he/she is entitled to get a full refund along with the interest.
• To continue with the project – in this case, he/he is entitled to get compensation along with interest.

Advance Payments: A Builder cannot take more than 10% of the cost of the Flat as an advance or application fees before entering in the agreement of sales. This is one of the major benefits of Rera.

Right Of the buyer in case of any false promises: In Case of any mismatch in the commitment or Promises made by the builder regarding the actual project. Then the buyer has the option to withdraw from the projects, wherein he is entitled to get a full refund of the amount he paid as advance or in some cases interest and claim compensation

Builders will need all clearances before selling: Earlier days, builders used to sell a project that did not have all clearances. Results many complicated problems to the home buyers. But under RERA Act. All developers, builders and real estate agents will have to register himself with the regulator, and disclosing all each and every detail about the projects and then only they can sell projects only after the necessary clearance have been verified.

Builders won’t be able to use your money for some other project: Untimely delivery of real estate projects has been the biggest Problem for Home buyers. According to Economic times, almost all the real estate project launched between 2010 and 2013 had defaulted their possession date primarily because of the fund collected by the builder from buyer were diverted to a new project.

Reduction in Prices of Real Estate: When RERA act comes to action in 2016 it has a direct impact on the price of the home, land and interest rate of your home loan. Because of the RERA act, The trust and transparency in the real estate business have been improved. Investment is also increased in the real estate sector. All these signals give Growth to the sector and higher demand is slowly decreasing the price and therefore the interest rate on home loans

The benefits of RERA are not just limited to homebuyers, but it also helps the developers and real estate agents in a number of ways. RERA act is making the Real Estate sector more professional and secure for investors builders as well as Buyers.

At the end make sure you buy a project which is registered under regulatory authority!