Buying a home is every family's dream. However, everyone cannot afford a home as the real estate prices are still very high compared to the income levels. The common person who invested his whole life saving to buy a home in real estate has a minimal right.
RERA stands for Real Estate Regulatory Authority and transparency in the real estate industry. This ACT was passed on 10 March 2016 by Rajya Sabha. All builders and developers must get a registration number before starting the project.
RERA focus on project and property to be delivered on time to the buyers. Rera insured that builders and developers provided complete clarity information to the client. Builders are bonded with the rules of RERA to provide every single and stage-wise information to the client. They must provide all information about the project like Brochure, Project layout, Pictures, 3D videos, etc on their website.
The major benefit of RERA is that Builders cannot charge their clients for the excess area(build-up and super area). Builders can't charge clients for the super area (the area is covered by external walls like an elevator, stairs, lobby, and other shared spaces).
Before RERA was in action, homebuyers had to face the trouble of not getting possession of the property at the assured time promised by builders.
After RERA comes into action, builders must complete their projects within the promised time. If the builders default on this condition, they are required to pay an interest rate of 2% above the lending rate offered by the country’s largest nationalized bank .furthermore builders could also face a possible jail of 3 years for project delays.
One more major advantage of RERA is that developers must mandatorily deposit 70% of the sums received from buyers into a separate escrow account and the money can only be withdrawn by the construction stage as approved by the builders’ chartered accountants and engineers. Also, builders cannot ask for more than 10% of the cost of the property as advance before a sale agreement is drafted. These are the several ways that RERA Act protects home buyers.