RERA: Here’s everything you need to know
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RERA is a regulatory body with the sole aim of protecting the buyer’s interest. The act has come in to effect by keeping in view the increasing number of incidents of complaints against the developers and buyers. In fact, now home buyers can finally be able to say good bye to the delay in projects and shoddy quality construction. So here’s what RERA has in store for home buyers. Let’s take a look –
1- Quality of construction: The quality of construction has been one of the major concerns with several builders. RERA offers protection against this up to 5 years after possession. In case of structural defect or any other major defect, it will be the duty of the promoter to rectify the issue within 30 days.
2- Delay in delivery: Untimely delivery of real estate projects have been the buyer’s biggest pain. As per the RERA act, promoters have to maintain a separate account for every project. In this account, 70 percent of the amount received from the buyers shall be deposited. These funds can only be used for construction purpose and land cost.
3- Regulatory authority’s role: It will solely be the responsibility of a regulatory authority to register and regulate real estate projects registered under this act. Moreover, it will also be required to maintain a website for public viewing of all the projects for which the registration has been done.
4- Booking amount: Earlier, builders used to ask for 10 percent of the total cost of the property as a booking amount. But, after the implementation of RERA act, a developer cannot accept more than 10 percent of the cost of property as application fee or advance payment, without first entering the agreement for sale.
Over and all, RERA seeks to improve the overall experience of buying a new house. But, what really needs to see is if the RERA can be as effective as the capital markets regulator, SEBI (Stock and exchange board of India). Besides, to avoid any wrongdoing with the buyer, several real-estate developers, such as Lodha Group are gearing up to follow the rules and regulations of RERA act.