RERA is an act that came into force in 2016 to ensure fair property dealings between builders and buyers. With RERA, buying residential and commercial properties has become safer and more transparent.
RERA stands for Real Estate Regulatory Act that regulates residential and commercial properties. The act protects the interests of builders, homebuyers, real estate brokers, and real estate industry stakeholders.
RERA has impacted the real estate industry in many ways. From revamping the real estate sector to making the builders accountable to the homebuyers, RERA ensures efficient governance and transparency in real estate business deals.
At Ashwin Sheth Group, all our projects are registered with the act. We build homes keeping in mind the homebuyers safety while providing them with immense benefits and hence, want them to invest in RERA registered projects.
Let’s take a closer look at the benefits of RERA to homebuyers:
- Right to information about the property
Before investing in any property, the homebuyers can get information about the builder and their projects.
Under RERA, builders should disclose every detail of the projects on RERA’s official website. This information includes plans related to layout, stage-wise completion status, government approvals, and other crucial information.
- Proper calculation of carpet area
Before RERA, there was no standard formula for calculating the carpet area. In the absence of any specified guidelines, the builders inflate the carpet area, which further increases the cost of the property.
RERA has defined carpet area as the net usable floor area of a flat; therefore, builders cannot charge homebuyers for the super built-up area such as balconies, lifts, stairs, and lobbies.
- Cap on Advance Payments
Prior to the introduction of the act, there was no cap on advance payments. Under RERA, before entering into the agreement, builders cannot demand for more than 10% of the property cost from the buyer as advance or application fees.
- Provides Compensation to homebuyers for the discrepancy
If the builder cannot give the possession on time, he is legally responsible for paying back the total investment to the homebuyer who wants to cancel the agreement. If the homebuyer chooses to stay in the agreement, the builder needs to pay interest every month for the delay until the revised date of possession.
Under RERA, builders are liable to pay compensations for selling on fake promises, property’s defective title, and construction defects.
- Reducing the risk of builder’s bankruptcy
Under RERA, builders need to open a project-specific bank account to put 70% of the homebuyer’s money to be used only for construction purposes. This ensures that the buyer’s money is in safe hands, and there is also transparency on its utilization.
RERA has been a significant step taken by the government to boost investments in the real estate sector. RERA’s mandatory registration for builders and developers before the start of their project has significantly reduced the number of project delays and acts of misspelling.
At Ashwin Sheth Group, we believe in professionalism and transparency. Our real estate projects, including Avante, Montana, Sheth Avalon, Sheth Cynergy, Sheth Zuri and Sheth Midori, are registered with RERA to protect the rights of every investor.