Top 10 Benefits of Rera Registration
Buying a real estate asset or investing in real estate has become way too convenient with the introduction of the Real Estate Regulatory Authority (RERA) Act because, before this act, there were no specified or common standards; instead, developers had their own version of conducting things. Each builder used to adhere to different guidelines and set of rules. The common investors who invested their hard-earned money in real estate had limited access to the right knowledge. RERA registration Haryana has significantly improved one of the largest real estate markets that is Gurgaon.
The government passed the RERA Registration Act in 2016 to defend home buyers' rights and help them in preventing real estate developers from manipulating them. In order to provide some extra awareness on the same, 10 major benefits of this regulatory act for investors and home buyers are discussed in this blog.
What is RERA Act, 2016 and How is it Useful for You?
To safeguard homebuyers' rights, the RERA Act was passed in 2016 with the core objective to protect the rights of real estate investors and buyers and support them against unethical practices. The RERA registration process is a foundation for detailed guidelines that are curated to enhance the transparency of real estate development and services. It has established precise rules and legislation that has to be followed by the builders as well as the homebuyers so that both parties stand on the base of fair practices. Moreover, in this act, the buyer may file a complaint against the organization in the case that the builder or developer violates any laws.
10 Benefits of the RERA Act for Investors and Property Buyers:
1. Standardization of Carpet Area - The carpet area is the genuine usable area that comes after excluding the inner wall thickness. Prior to the RERA registration check, builders used their own formula for determining the carpet area of a property. However, with the introduction of this act, there are clear guidelines on how a builder should calculate carpet area. Now, the correct Cost Of Property can be calculated by multiplying Carpet Area by Rate Per Sq. Ft.
2. Right to Get Complete Property Information - The right to property information is one of the most significant advantages of the RERA statute as it offers you the right to get full details about the property you are investing in or buying as a buyer. As a buyer, you can get details about the RERA registered projects including plan layout, stages of construction, the status of completion, execution, and so on.
3. Reduced Risk of Developer's Bankruptcy/Insolvency - A developer typically has multiple projects under construction at once. Previously, developers used to utilize the money earned from one project to pay for another project’s construction but now, it is no longer feasible as a result of the implementation of RERA. As per the act, funding is limited to use for the purpose for which it has been raised and this will ensure that the property gets finished on schedule and customers get the timely delivery.
4. Timely Grievance Redressal - Any complaint concerning the builder can be filed to the state-level regulatory body established under RERA, which will have the jurisdiction to resolve all complaints. If the complainant disagrees with the decision, he/she may submit it to the Appellate Tribunal, which will resolve the same within 60 days. Before the appeal is heard, the builder is required to pay at least 30% of the fine, including interest and any monetary damages that may have been mandated on him, or both, depending on the situation.
5. Right to Buyers Against False Promises - The customer has the right to file a lawsuit if the builder's promises or agreements concerning the actual project contradict. The buyer is then free to decide whether or not to continue with the projects. If not, the buyer has the right to receive a complete refund of the advance money and any other applicable compensation. Moreover, the buyer owns full authority to withdraw the interest from the project if any type of unfair practice or discrepancy is found.
6. Right to Buyer Against Delayed Possession - Under the RERA Act, each real estate developer is mandated to mention a specified due date for the possession of any property that it has started to construct and raised funds for. Within the rules of law, if a developer fails to complete the project on the mentioned date then a penalty can be charged. Moreover, if s buyer has invested in one of the RERA registered projects in Gurgaon and the developer fails to deliver the same by the scheduled time, the buyer gets the eligibility for complete compensation along with interest.
7. Rights to Buyer in Case of Fault in Title/Construction - One has the right to reimbursement from the builder if it is discovered that there is a title problem at any time after the possession of the project. Haryana rera registered projects offer this right where any identified flaw can be questioned according to the RERA Act. If a buyer finds any defects in the structure, execution, or inclusion of the property within five years of taking ownership, the builder must make the necessary repairs within a specified period at no extra charge. Furthermore, the buyer of the property is entitled to reimbursement if the builder doesn't fix the matter.
8. Advance Payments - One of the greatest advantages is this where the builder may not demand an advance payment or application charge greater than 10% of the assessed value of the Property prior to entering into a sales agreement.
9. Validating the Clearances - Previously, builders used to sell the projects before receiving the necessary clearances. Consequently, property buyers dealt with a variety of concerns related to the title of the property. However, with the application of the RERA Act, this is not the situation anymore, as now, the builders can only sell the property once the necessary clearance has been validated from their end. For this, they are required to submit the relevant paperwork to the registrar.
10. Fair and Low Pricing in Real Estate Market - The real estate industry now has greater credibility and transparency simply because of the RERA Act, which became effective in 2016. Investment has also increased in the real estate industry which further supported the sector's expansion, and growing demand is driving down prices and, ultimately, housing interest rates. The act has improved the competence and security of the real estate market for buyers as well as investors.
Relevant Points to Note:
(i) The RERA guidelines apply only to the property and its development. It does not apply to the property renting.
(ii) RERA Act includes all types of commercial and residential property options including office spaces, shops, buildings, etc.
(iii) The government has introduced a program called Pradhan Mantri Awas Yojana under which subsidy on loans is provided to families who are looking for owning a house.
