What is RERA & how it will help home buyers
by Litty Jose Finance AnalystOne of the chief concerns for a home buyer while purchasing
a flat that is under construction or in a newly constructed building is that
the developer can cheat them by not completing the project. There are hundreds
and hundreds of such projects in the city and this is one big problem that new
home buyers face in the present market condition. But the government has
finally come to their aid and has implemented RERA, which will help all new
home buyers rest assured that they get their moneys’ worth and that too in the
time period that has been promised to them.
So, what is RERA? RERA stands for Real Estate (Regulation
and Development) Act. This act was implemented on May 1st 2017 and
as per this act all developers of both residential and commercial properties
need to register their project with the Real Estate Regulation Authority. This
has to be done within three months of the implementation of the Act. On failing
to do so the developer faces a penalty which amounts up to 10 percent of the
cost of the project or even imprisonment. Without registration, the developer
cannot sell or advertise the project or invite potential buyers to purchase any
units. This act is a game changer for home buyers as most of its rules and
regulation are in their favour.
There is good news for home loan seekers too. As per this act if there is a delay in
the construction of under construction property the burden of paying monthly
interest on your housing loan during that period falls on the developer. Under
RERA, a separate account has to be used to deposit 70% of the money collected
for the project’s construction, and developers can draw from it only for
construction purposes.
RERA India is all about transparency between the buyer and
the developer. The RERA act makes it mandatory for developers to give all
details of the project to the buyer such as the cost of land, development
agreement, cost of construction, sanctioned plans, covered parking lots, and
open spaces, among others. These details should all be available to buyers
online, the developer must also provide a time frame and a phase wise plan to
the buyer.
Sponsor Ads
Created on Dec 31st 1969 18:00. Viewed 0 times.