Indian Government recently passed and put to action the RERA (Real Estate Regulatory Authority) Act and it is nothing but a boon to Home-buyers (activated in many states including Maharashtra, rest too shall follow soon). If you are unaware of this term, I would highly highly recommend you to go check it out. If you are somebody who is thinking of getting a new house, this shall be a very important news and you must know about it.
In this post I won’t discuss the whole Act, it is up on the government site ‘apnarera.com‘, you can find everything in detail on this site. What I am going to tell you is, what are it’s benefits to us home-buyers and in how your home-buying experience going to be more secure, non-corrupt and unbiased because of RERA.
Here are 9 major factors that will have an impact on your home-buying experience:
With this act in practice, a builder/ developer has to deliver the flat/ house within a limited and fixed time period. Failing to do so can cause the builder to pay penalty. Taking almost complete payment and not completing the work on time is a common practice with builders and this act will keep a watch on the same. There have been a ton of complains about the same issue in RTI and other government organisations. But now, we have a special authority for Real Estate issues and the certainly is a good-news.
With this act not only the building period is limited, but also the time in which action is taken to any complain will be limited and thus it seems like pretty promising step.
Pay only for Carpet area.
No built up or super-built up, just forget about these terms now. with RERA you will have to pay for just the area that you would own i.e. the carpet area. It has been made compulsory that builders can charge only on the carpet area. This may lead to a price hike in rate per square feet, but even then you payment will be justified as you will actually get to use what you pay for. Often the price of the house is calculated on the super built up area, in which you might pay for a 1000 sq.ft house and get a 700 sq.ft area house (which seems like a total scam to me). And even after the price hike you will most probably end up paying less than what you would pay for the same flat with the old rate on super built up.
No false promises.
A lot of times builders show an open land on site as a parking area, but on municipal plans it is mentioned as something else. Now, no more bluffing, builders can advertise only things that are approved and passed by RERA, thus you don’t have to face betrayal.
No advertisements without RERA certification.
Just as mentioned above, everything has to be passed and certified before even advertising. A project can be put on sale only and only after getting a unique RERA project certification number. This number shall be allotted to projects with all approved plan and other necessary documents. RERA is like an ISI mark for the Real Estate, thus making this sector a lot more safe and secure than before.
Registered agents only.
RERA is not only certifying Builder, developers and Projects, it is certifying agents as well. A lot of time clients are bluffed by agents with false advertisements and promises. Also many people are fooled by fake agents who con them. With RERA in action only certified agents can carry on the work, so if you are an estate agent go register yourself, registration had started.
If any changes 2/3 must agree.
If there are any changes in the plan of a project after it is registered and sold (even if a part of it is sold), the developer has to have an approval permission of minimum 2/3rd of the clients to make those changes. Otherwise, the builder has to stick to the original plan without any changes. So now you can be assured that you will be delivered exactly what you thought of.
Reduction in booking amount to 10%.
The booking amount is reduced from 20% of the total cost to 10%, do I need to say anything else? it is a great news to every new home buyer who is saving for their new house.
Heard of only 100 vegetarian society, or only families and no bachelors allowed societies? Yes they exist, but with RERA they will be a thing of the past. No discrimination on the basis of food habits, marital status, caste, profession, etc. will be allowed. The right to buy a house in any project is equal to everybody. If you face any such discrimination, you can complain to RERA and necessary action will be taken. It will certainly put a full-stop to unnecessary rules by certain societies that limit options to the people who don’t fit in those rules.
Specific authority to complain.
Just as I mentioned earlier, RERA is like ISI mark for the real estate and now we have a specific authority to go for help when we feel trapped in any real estate problems. And the best [art about it is, it;s time bound so you must get a solution within a short period of time.
So, if you know somebody who is thinking of getting a new house, share this post with them so that they too become aware of these benefits that RERA is bringing to them.
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