RERA makes ‘Consumer is king’, a reality

Bid adieu to the undue project delays and shoddy quality of construction as RERA comes to your rescue. The much awaited Real Estate (Regulation and Development) Act, 2016 which is coming into force, promises transparency and accountability. In this regard, each state and UT will have its own Regulatory Authority to frame the rules and regulations according to the act. The Regulator will ensure that the rights and interests of buyers are protected and duly respected.

The Act is positioned to protect home buyers from unscrupulous developers. After the implementation is in its full spirit, hope continues to float in the housing industry sector.

RERA is attributed to give transparent and ethical practices that would safeguard the interests of buyers and impose heavy penalties on errant builders for not fulfilling their promises.

 No doubt, RERA is a great initiative and has plethora of benefits. With RERA coming into picture, some buyers are hopeful that it will end their problems while many are unaware about the benefits they can get from the new regime. Here are a few ways in which the buyers will be benefited from the Act:

·      Stage-wise time schedule of project:

It will be a mandate to share stage-wise Design plan/ time schedule of progress of construction of the project at the time of booking along with the facilities like sanitation, power and water supply.

·      Booking amount not more than 10%:

A Builder cannot charge more than 10% of the project cost as advance payment before entering into an ‘Agreement of Sale’.

·      Project Registration:

Before a project gets advertised, a registration number has to be obtained against it, with following details duly furnished:

(i)             Promoter’s background details

(ii)           Details of projects launched by the promoter and their status.

(iii)         Authenticated copy of Approvals and commencement certificate

(iv)         Performa of Agreement of Sale

(v)           Carpet Area and area of Garage, balcony etc.

(vi)         Legal title of the land.

·      Registration of all on-going projects: All on-going projects to be registered by the promoters with RERA.

·      Interests on delays/ defaults or compensation for delays: Authority for particular State or UT to decide the interest rates in case a promoter defaults or delays according to the timelines.

·      Quality assurance: ‘What you see is what you get’ is brought to life by the new reforms suggested by RERA. The RERA provides a 5-year protection against any construction defects, specifically structured defects.

 The paradigm change brought by RERA has ignited lots of hopes in the real estate sector and will make the working more organised and trustworthy, thus, making buyers and investors more confident, because at the end, ‘Consumer is the ultimate king’.

Watch the Video here: Tips on Brick on RERA by Vishal Gupta