State of RERA Implementation: Are Home Buyers Really Safe?
Are you thinking about spending all your life savings into a home purchase? Do you know about RERA (real estate regulatory authority) implementation? If not, then you should become aware of RERA before buying a property. The rules prescribed under RERA are to protect the rights of both residential and commercial segment buyers. So far, only fourteen states have implemented the RERA rules completely. Soon, you will expect RERA implementation in your city. Continue reading to know the benefits and impact of RERA implementation and RERA Registration completely.
A Quick Overview of RERA
RERA actually stands for Real Estate Regulatory Authority, which is an act for the promotion and regulation of the real estate sector in order to make sure the sale of plot, apartment, and building in the transparent and efficient manner. Its major aim is to protect the consumer's interest. In May 2016, the parliament enacted the RERA act and it has come into effect from 1 May 2017 with all its 92sections throughout the country.
The implementation of RERA is actually bringing a huge relief to the homebuyers because builders will be responsible for the timely delivery and quality of the project. It also protects the buyers/consumers from the fraud sellers. On the other hand, developers would gain from the improved confidence of the consumers in the highly regulated ambiance.
For all developers, it is mandatory to get approvals from several government agencies before launching their product as well as disclose all the details on the site, which respective state RERA will set up. Regulator offers a registration number for all the real estate agents, which should be mentioned in every property sale. This helps in removing the possibility of misleading the buyers.
How to get RERA Registration?
Do you wish to get RERA Registration for your upcoming projects? Then, you should follow the below steps carefully.
- Firstly, you should file the application form along with the required documents and fee to get registered under RERA
- Upon successful registration, you will get the registration number from the regulator, which should mention in every property
- You are also needed to maintain the books of records, account, and documents related to the transactions on a quarterly basis
- Share all sorts of documents and information about the project with the purchaser
- During the registration process, real estate agent may be suspended from the fraud and misrepresentation
Benefits of RERA Implementation
RERA implementation is absolutely safe for home buyers. In fact, this act will help them to take a more informed and smart buying decision. Additionally, homebuyers can enjoy following benefits.
- As builders disclose all the details regarding the project on the authority site, you will never worry about losing your hard earned money through fraud agents
- Buyers need to pay only for the area within walls, not for the life, stairs, lobby, and balcony
- Timely completion of projects because about 70% of money gathered from buyers and transferred to separate bank account to use them solely for completing the project construction works
- Any defect in the building for 5years will be accountable for builder and any delay in the project completion will need developers to pay 2% interest rate to the buyers.
