What is RERA?
RERA stands for real estate regulations Act and was introduced in 2016 to protect the interests of the home buyers. The main aim of RERA is to produce relief to the buyers from the malpractices of unfair builders
RERA specifies certain norms for building and development of real estate which is able to enhance the transparency in transactions in the real estate sector
It has provided many rights to the home buyers and has also specified certain rules and regulations to be followed by all builders/ developers
Moreover, the RERA Act also specifies the creation of a Real Estate Authority and legal proceeding tribunal for every state. In case of any wrongdoing by the builder/developer the home purchaser also can file a criticism to the present authority.
Benefits
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Standardized carpet area
A major profit for customers included within the Act is that builders can have to quote prices based on carpet area not super built-up area, whereas carpet area has been clearly defined within the Act to include usable spaces like kitchen and bathrooms.
Rate of interest on default
In case of default in payment by the buyer or default in completion of the project by the builder, the rate of interest to be paid shall be the same for both parties.
Right of the Buyer in case of False promises
In case there’s a mismatch in the commitments made by the builder and the actual project, the customer has the choice to withdraw from the project, wherein he’s entitled to full refund of the amount paid as advancer otherwise along with interest and claim compensation.
Advance Payment
The builder will take not more than 10% of the price of the flat, villa etc. as advance or application fees as the case may be, before moving into an agreement of sale.
Right of the buyer in case of Defect after possession
In case of any structural defect or any defect in workmanship, quality, provision or service is discovered within five years after the possession of the apartment such defect are corrected by the builder at no additional cost within thirty days.
If the builder fails to do so, the customer shall be entitled to claim compensation for the same.
Rights of the buyer Delay in possession
If the builder fails to complete the project on the due date of completion then the customer has the option-
To withdraw from the project, whereby he shall be entitled to full refund along with interest payable from the due date of the completion until the amount is refunded.
Rights of the buyer in case of defect in Title
If at any time after the possession of property you find that there is a defect in the title of property then you can claim compensation from the builder. It is not barred by limitation, which means there is no time limit within which you have to discover the defect
Right to information
The buyer shall be entitled to all the information associated with the project, be it the set up layout, execution plan, stage wise completion status etc.
OR
The Act prohibits unaccounted cash from being pumped into the sector and as of currently 70 per cent of the cash has to be deposited in bank accounts through cheques is currently obligatory .a major profit for customers included within the Act is that builders can have to quote prices based on carpet area not super built-up area, whereas carpet area has been clearly defined within the Act to include usable spaces like kitchen and bathrooms.