RERA Stands for Real Estate Regulatory Authority which came into Existence as per Real Estate ( Regulation and Development ) Act 2016 which bring to transparency to the Real Estate Industry & address the Existing discrepancies.
MahaRERA optimized investments, serving buyers with assurance that streamlined the commitment of delivery from the developer’s end in receiving the expected value for money. RERA created a mechanism where overall project issues from delays to quality to pricing to delivery could be dealt with responsibly.
Even as MahaRERA boosted profits for both buyers and developers, it bridged the gap between the two, thereby strengthening ties effectively in reinstating faith in the real estate market and bringing about radical transparency, efficiency, and accountability in standardizing it.
The Act was passed by the Indian Parliament in 2016 and came into Effect May 2017 to make the home buying process more transparent and address the concern of Home Buyer, Builder, Broker and other real estate stakeholder.
HERE ARE THE KEY BENEFITS OF THE RERA ACT FOR INDIAN HOME BUYERS:
Standardized Carpet Area: Earlier builders had their very own undefined formulas to calculate the price of the property. For the same flat, one builder would calculate the carpet area as 1500 sq. ft while the other would calculate it as 1400 sq. ft.
But with the implementation of the RERA Act, carpet calculation now became standardized with a clearly defined formula set by RERA for carpet calculation.
This led to a decline in manipulation and inflated prices set by dubious builders for unaware homebuyers.
Cognizance & Accountability On Default:
RERA’s inception quashed interest disparity. Today, in case of default by either of the parties the interest rate to be paid shall be the same for both parties.
Also, with RERA, builders are now liable to compensate for the repairs of any faulty construction in your apartment. This is subject to structural weakness in the property up to a duration of 5 years from the date of possession..
Grievance Redressal Mechanism:
Dissatisfaction by homebuyers over construction or any other issues with their residential or commercial property in Mumbai can now be addressed at the Appellate Tribunal, where cases are addressed within 60 days.
Quality Construction:
RERA has helped create some necessary checks and balances in the system concerning construction quality.
Rectification of poor or improper construction or structural defects should be rectified when being reported by the buyer.
Proper & Timely Handover:
RERA has greatly emphasized the saying ‘Time is Essence’ and thus it focuses on sticking to deadlines in keeping the commitment of granting the home buyers their desired dream homes on time. Builders after receiving OC have to abide by providing possession to their buyers.
Advance Payment:
As per the Act, the builder can only take up to 10% of the property value as advance payment from the home buyer, without entering into an Agreement. If the buyer identifies a discrepancy in the title deed of the property, an immediate refund of the amounts paid can be demanded from the builder.
Right To Information:
The Act extends the buyer, the right of being entitled to all the information related to the project, be it the plan layout, execution plan, stage-wise completion status, etc.
RERA in all has emerged as a change-maker and as an excellent catalyst in both diversifying and promoting the overall growth in the real estate industry.
