The RERA Act has made it compulsory for builders to ensure there is total transparency in the information conveyed to the home buyer.
Under the act, the builder has to solve any issue faced by the buyer within 5 years of purchase in 30 days.
The Real Estate Regulatory Authority (RERA) was formed as per the Real Estate (Regulation and Development) Act, of 2016. This aims to protect home purchasers from unfair builder practices. RERA has instructed the developers to sell properties based on carpet areas and not super built-up areas. Under the RERA Act, buyers are entitled to get back the entire money invested when the project has been delayed.
Also, the buyers can choose to be invested and receive monthly investment on their money. RERA has to take action on the complaint filed by the buyers within 60 days. Builders need to follow the decision taken by the authority within 45 days. Under the act, the builder has to solve any issue faced by the buyer within 5 years of purchase in 30 days.
According to RERA, Carpet Area is the actual usable area of the property that is disclosed by the developer under the RERA Act. Super Built-up Area comprises an exclusive built-up area in addition to common areas, like lifts, common corridors etc.
There are other benefits of RERA as well-
Full transparency in dealings:
The RERA Act has made it compulsory for builders to ensure that there is total transparency in the information conveyed to the home buyer. Builders are obligated to inform the buyer about every aspect of the project they are building. They should also provide a pamphlet and also update these details on their real estate websites.
Delays not allowed:
Builders must complete projects within the time frame promised by them. Builders who will default on this are required to pay an interest rate of 2% above the lending rate offered by the State Bank of India. Builders could also face a possible jail term of 3 years for delays in the project.
Builders cannot use buyer’s money for other projects:
Another major benefit of RERA is that developers should compulsorily deposit 70% of the sums received from purchasers into a separate escrow (neutral third party) account. The money can only be withdrawn by the construction stage when it is approved by builders’ chartered accountants and engineers.
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