The RERA Act was passed in 2016 to empower real estate investment & give the buyers power to get their rights as promised by the developers. The act was needed as there are countless cases where developers have cheated the buyers.
RERA Act empowers buyers with its right-to-information feature to identify all the details of a project. This is extremely helpful as buyers get to know all information about their investment project such as layout, execution plan, stage-wise completion status, etc.
Right to Information
All builders and developers must get RERA registration certification before starting a project. The property documents include NOC, completion certification, and occupancy certificate as well.
Necessary Clearance
RERA Act makes it compulsory for all real estate agents to register with RERA. All deals done by real estate agents must be done under their registration number. Failing to do so will be liable to penalties or imprisonment.
Registration of Real Estate Agents
THE RERA makes sure that the buyer and developers have a balanced agreement. Earlier the developers used to have an upper hand on all deals. This also keeps things transparent on both sides.
Balanced Agreement & Transparency
RERA stands for the construction quality of any project. Under this, a developer is responsible for any kind of damage in the construction up to 5 years. They have a 30-day limit to act upon any complaints regarding construction. Failing to do so makes them liable for penalties.
Ensures Construction Quality
RERA secures the on-time delivery of the projects to buyers. Failing to do so will add 2% interest over the State Bank of India’s lending rate to the home buyers or imprisonment for up to 3 years.
On-Time Delivery of Projects
The RERA act has made carpet areas the standard units of property sale and the super built-up model is banned. Moreover, a developer can’t change the layout of the project without the consent of 2/3 of the total buyers.