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Advantages Of Registering Under Rera You Need to Know
RERA is the Real Estate (Regulation & Development) Act, which came into being in India in 2016. The authority aims to bring more transparency and accountability to real estate deals for both commercial and residential projects. A RERA-registered real estate project will get a certificate of registration with a unique registration number. Additionally, the certificate showcases all the crucial details of real estate projects...
What is the RERA Act?
As mentioned above, RERA was put in place in India in 2016 to clarify real estate deals. In 2016, the parliament passed the well-known RERA act to stop real estate builders as well as home buyers from breaking basic consumer rights through shady business practices.
RERA has a few norms that real estate developers & buyers must follow to operate legally. A real estate project that bypasses the RERA norms will be considered illegitimate. On the other hand, RERA protects consumers from malpractice, and they can file a complaint easily against the builders/buyers who fail to maintain RERA compliance.
Benefits of RERA
#1 - Transparency
RERA brings transparency and eliminates confusion by establishing standardized real estate practices. For example, RERA defines uniformity in calculating carpet area. In the past, many real estate sellers or builders used different formulas to calculate the carpet area according to their convenience. A larger carpet area means the sellers can get more money from the buyers. However, a RERA-registered real estate company must follow standard practices to calculate the carpet area. As a result, real estate deals have become fair and square for home buyers.
#2 - Quality Assurance to the Buyers
The real estate consulting services registered under RERA should provide quality assurance to the buyers. The builders are liable to rectify the structural disputes and qualitative problems that appear within five years of the project's completion. Otherwise, buyers can lodge complaints against the builders with the RERA. The authority will punish the builders who do not comply with the RERA guidelines.
#3 - Fairness
In the past, many builders needed more commitment to deliver a project on time, as promised to investors or home buyers. With the introduction of RERA, the builder is liable to complete a project within the stipulated time. If the builder cannot deliver the project on time, it should pay interest on the amount paid by the buyers
The act doesn’t play only in the favor of home buyer it also penalizes the buyer for delayed instalments. Incessant payment delays despite a prior notice empower the developer to cancel the booking and refund the amount to the buyer after deducting booking amount and interest. Overall, the Act not only safeguards the rights and interests of the homebuyers but developers as well
#4 - Security
RERA prevents any malpractices that builders may adopt to mislead customers. For example, builders can only change the building plan with the buyer's consent once the plan has been submitted. Please complete the project according to the plan to avoid RERA certificate cancellation. Otherwise, the builder may have to pay hefty financial penalties to the buyers in such cases. With this RERA’s main intention is to maintain transparency and the balance between Builders & Home Buyers.
#5 - Authorization
RERA is an organization whose goal is to make sure that real estate projects are fair and honest. At times, builders may need more than the buyers' demands. In such cases, the builders can also file complaints and appeal to the authority to investigate the matter. An appellate tribunal will hear the grievances and render verdicts.
The introduction of RERA has standardized real estate deals, omitting the malpractices that can cause financial losses for buyers and builders. Therefore, the builders should register their real estate projects under RERA through easy online RERA registration.