The Real Estate (Regulation and Development) Act was introduced in 2016 by the Government of India. It was issued in the interest of the property buyers with the aim to protect them from exploitation. The launch of RERA was an announcement for the builders to stop taking the consumers for granted. Here are the major benefits of the RERA Act.
Major advantages of RERA
Lack of transparency was one of the biggest problems in real estate transaction. However, with the RERA Act, now the buyers have the rights to question the builder wherever and whenever they have doubts. The builders are now bound to provide the buyers with detailed data regarding the project status at every step. The property buyers can even lodge an FIR if they fail to do so.
Enhanced adherence to legal norms
The regulatory authority (RA) possessed negligible power until the RERA Act was introduced. The builders used this opportunity to extract extra money from the buyers. But now the RERA Act has given power to the regulatory authority in every state and union territory. Hence, it has become mandatory for the builders to adhere to the fundamental property transaction norms.
Reduced real estate cost
RERA has also influenced the cost of real estates. With enhanced transparency and trust, more buyers are now investing in real estates. As a result, the demand has increased more than ever before. This has in turn brought down the property prices.
Right to information
Under RERA, the homebuyers have full rights to question the builders whenever and wherever they have any doubts.
Real also- How to File the Complaint under RERA Act
Fast grievance redressal
Complaints filed under RERA receive fast grievance redressal as it is mandatory for the RA to dispose of cases within 60 days.
Right to claim compensation
Under RERA, the homebuyers can rightfully withdraw and demand compensation from the builder in case he purposely delays handing over the property within the pre-stated time duration.
Reduced advanced payment
Under RERA, the builders cannot charge more than ten percent of the property price as advance payment.
Reduced risk of bankruptcy for builders
Usually, builders have many projects being developed simultaneously. Hence they earlier used to divert funds raised for one project to another. However, this won’t happen now as the builders require depositing 70 percent of the fund collected for a specific property in a reserved bank.
Reduced in the interest rate on home loans
Standardized carpet area
Earlier there wasn’t any standard formula to compute the Carpet Area. Every builder used his formula for calculating the same. However, now RERA has clearly defined a standard formula for calculating Carpet Area.
RERA has proved to be a rescue for the homebuyers who were earlier helpless and constantly dominated by the cunning real estate builders. It has indeed empowered the property buyers, giving them a better position in the real estate sector.