RERA is common terminology now in the real estate market. In fact, builders display their RERA registration no. in the advertisements. So what is RERA and why it so powerful? Let’s check.
RERA stands for Real Estate Regulatory and Development Act, that was passed by the central government in 2016 and came into force from May 2017. RERA was passed to regulate the fraudulence that was increasing every day in the real estate world. It aims at increasing accountability and transparency if real estate purchases.
So RERA is impacting the real estate world for the builders?
According to the RERA regulations:-
- All the proposed projects that involve area more than 500 sq.ft or 8 apartments have to get registered into their respective state RERA.
- Builders need to mandatory deposit 70% of the money collected from the buyer in the bank through cheque.
- The builder has to update the progress of the project on the RERA website.
- Builders cannot feature or advertise their project unless registered with RERA.
How home-buyers can directly be benefitted by RERA?
RERA guarantees the home buyers that:-
- In case builder fails to give possession of the property in set date, buyers can withdraw from the project and will be compensated in full by the builder. In case you don’t withdraw, the builder needs to be compensated with interest every month till possession.
- RERA empowers buyers to question the developers about the steps taken and development of the project.
- To prevent any fraudulence, all the agreement between the builder and the homebuyer will be made on the RERA approved model sale agreement.
In our next post, we will discuss on RERA’s role in the housing societies.
Stay tight to space and have a good day!