RERA Act: Everything Homebuyers Need To Know
Buying a home is a dream for many because it is the start of their new journey. Besides the excitement, it also comes with several challenges. Some of these are hidden expenses, delays in possessions and promises not fulfilled. However, all these problems will no longer be an issue, thanks to the RERA Act Karnataka.
Did you know that around 124.74 thousand real estate projects were registered under the RERA Act in India? Worried if your dream of buying a home will ever turn into a reality? Whether you are stuck with a not-so-professional developer or not getting legal clarity, it's time for you to turn to the RERA Act. So what exactly is it? How does it help homebuyers? Well, here is everything you need to know.
What Exactly is the RERA Act?
Wondering about “What is the RERA Act?” Passed by the Indian Parliament in March 2016, the RERA Act stands for the Real Estate (Regulation and Development) Act. It came into effect on May 1st, 2017 and was created to control the real estate industry.
This act's main objective is to guarantee that homebuyers receive fair treatment. Encourages efficiency, accountability and transparency, it makes sure home buyers are not misled. For your better understanding, here are some key objectives to know about this act:
-
All relevant information concerning the project must be disclosed by the builders. This includes the design, development phases, completion dates and more.
-
Buyers have several rights under the act. This includes the right to information, prompt possession and reimbursement.
-
It is the responsibility of builders to complete projects within the allotted period to avoid penalties.
RERA Act applies to both residential and commercial developments throughout India. However, the project must be larger than 500 square meters or must have more than 8 flats. It also covers new and ongoing projects that didn't have a completion certificate before the introduction of this act.
Homebuyers’ Rights Under the RERA Act
From sufficient protection against dishonest business practices to project delays, homebuyers are given several rights, under the RERA Act. Let's dive deeper into these rights:
-
Information Right
Under RERA, buyers are entitled to information about all project details. This includes:
-
Layout and plan for the project
-
Government clearances
-
Legal status
-
The profile and track record of builders’
-
Phases of construction and timeline
Builders must update all information on the RERA platform, giving registered homebuyers access to all. Did you know that a total of 22 out of 28 states adopted RERA within a year of its announcement?
-
Timely Possession
RERA requires builders to meet the deadlines mentioned in the agreement. However, if the builders fail, buyers have the right to seek a refund, under section 31 of the RERA Act. As buyers, you can demand payment or a complete with interest if the builder is unable to complete the project on schedule.
-
Seek Compensation
Homebuyers are entitled to compensation if there are delays or inconsistencies in the project. In case of delayed possession or failing to meet the stipulated standards, builders will have to pay fines.
-
File Complaints
Under the RERA Act, buyers can complain about builders using the grievance redressal method. For dispute settlement, buyers can turn to the Appellate Tribunal or the Real Estate Regulatory Authority.
-
Refund Right
Under section 18 of the RERA Act, buyers have the right to seek a refund. This implies when a builder misses deadlines or doesn't perform on their end. As buyers, you can ask for a complete refund of the amount paid plus interest. Customers can also back out of an unpleasant deal with this right without losing any money.
4 Major Benefits of the RERA Act
India's real estate market has been expanding quickly but also had been dealing with issues. This includes fraud, project delays, lack of accountability, etc. However, with the RERA act, these aren't an issue as it brings a wide array of benefits. So, now that you know what is the purpose of the RERA Act, let's deep diver into the benefits it offers:
-
Fraud Protection
A project that has earned RERA certification guarantees that the builder complies with all applicable laws and moral standards. This, as a result, protects buyers from fraud, helping them make a reliable investment move. Overall, it lowers the likelihood of real estate fraud, false advertising and project delays.
-
Enhanced Trust
Developers who hold a RERA certificate are considered reliable in the industry. They hold credibility and reputation, both in the market as well as in the eyes of buyers and potential customers. This, as a result, increases investor and buyer trust, thereby helping them make safe investments. Moreover, buyers can also go through the RERA Act pdf to keep themselves more informed.
-
Timely Completion
Project delays are one of the main issues that homebuyers are worried about. Strict project completion timeframes are required by RERA and builders must adhere to the deadline mentioned. However, if builders fail to adhere to complete the project on schedule, they must pay buyers. As a result, this offers buyers peace of mind knowing the project will be either completed timely or they will get their money back.
-
No Expense
Another benefit for homebuyers is that they do need not to pay extra expenses if they find any structural flaws or poor-quality construction. Instead, the builder must rectify such defects, which results in long-term satisfaction. Such maintenance charge regulations guarantee openness in fee collection and protect buyers from unfair expenses.
Protecting buyers' interest, this act has brought a significant change in the Indian real estate sector. For more, you can also download the RERA Act pdf and stay informed for your every right.
Be More Confident in Your Purchase
City Prop is the leading real estate company, offering top-notch buying solutions to home buyers. Our team of professionals are experts and understand buying or selling a home is more than just a transaction. From beginning to after-possession, we stick with you throughout the journey, building long-term goals.
As certified real estate experts, we prioritise all your needs and requirements. From an in-depth analysis of the RERA Act Karnataka, we keep guiding you to make the right decisions. We offer services related to a wide range of properties with full support throughout the journey. For more, you can contact us anytime without any hesitation.
