May 12, 2018
Take a deep insight of 10 major benefits of RERA
The word ‘own home’ brings lots of happiness in our life. If we are not wrong, buying a home is everyone’s dream. However, many of people are not able to buy it because of several reasons. Adding to the melancholy, different builders follow different norms and rules.
Being a common man, we all invest our lifetime savings in Indian Real Estate. RERA Act is introduced in terms of protecting the interest of property buyers. Additionally, due to this act one can protect and safeguard the interest related to home buyers.
Taking an insight of RERA
Introduced in 2016, RERA (Real Estate Regulations Act) is introduced in order to protect the interests of home buyers. The main reason behind its introduction is to bring the relief against unfair deals practiced by builders. Because of the set rules, the transparency an easily be practiced in the real estate sector. However, RERA Act also gives different rights to home buyers that have to be followed by builders or developers.
Discussing the benefits of RERA Act
Here, we are discussing major benefits that bring advantages to buyers.
1. Consistent carpet area
The rate of a property was not calculated properly based on previous carpet area. Every builder or developer follow their own way of calculation of carpet area. This happens because no certain calculation rules are there. Carpet area is generally defined as net usable floor area that excludes external walls, areas under services shaft, exclusive balcony and verandah area.
Now, RERA Act gives a formula for computation of carpet area. The same formula is now applied by all builders to practice certain norms.
2. The default rate of interest
When there is a default payment, the rate of interest can easily be paid by both parties. Earlier it was seen that the builder cause the delays at the time of possession of a property. The RERA Act clearly defines the interest rate.
3. Minimizes the risk of bankruptcy
RERA ensures that it serves the persistence of ensuring that the funds are not diverted in many different ways.
4. Prevent the buyer from false promises
While practicing the RERA Act, the buyers can ask for refund paid in advance along with claim compensation and interest.
5. Talking about advance payment
The builders are not allowed to take more than 10% of total cost of an apartment. This is taken as application fees before doing any agreement or sale.
6. Buyers have the right in terms of the defect after possession
One can easily detect the defect related to structure and defect in workmanship.
7. Buyers have right against a delay in possession
This happens when the builder is not able to complete the project on time. In that case, the buyers can withdraw the project or wait till the completion of a project.
8. Right to information
This act gives the right to information to the buyers regarding anything.
9. Developers can easily update the project details on RERA website.
10. Before starting the project of Property in India, the developers have to register the projects with RERA.







