Looking to buy a house? Do you Know about RERA?

Have you ever come across an article in the news about builders cheating house-buyers? There are many such cases all over the news and till 2016 this was a very serious problem. Since the very beginning, many homebuyers have protested that real estate transactions were unbalanced, and the scales were tipped strongly in favor of the property developers. Buying a house is a huge financial investment. Until RERA builders/Developers worked on their own terms and didn’t follow any standards rules or timetable that they followed. There were no standard Builder-buyer agreement clauses. They were made in a manner that favored the builders heavily. People put lot of blood sweat and tears and life savings into buying a house. The government hopes that RERA will provide a buffer between the buyers and builders in a bid to safeguard the interest of the buyers. RERA is put in place to make sure homebuyers aren’t exploited.

What is RERA?

     RERA (Real Estate Regulations Act) came into play in 2016. It was created in an attempt to protect homebuyers from fraudulent activities and malpractices of builders/developers. RERA has set up certain rules and regulations that a builder/ real estate developer must abide by to create more transparency in all the transactions in the Real Estate industry. It also empowers the buyers by giving them certain rights.
In addition, the RERA act also instructs the creation of a Real Estate Authority and an Appellate Tribunal in every State. This will provide a platform of authority for homebuyers to submit complaints in case of any wrongdoings on the part of the builders.

Benefits of RERA

    RERA brought a huge sigh of relief among all the people who were interested in investing in real estate. This act has paved a way for the formation of a system where issues in delays, quality, pricing of the projects can be handled with a lot of transparency.
Here are some of the benefits that RERA provides the homebuyers.

1) Right to information about the property:

     As a part of the RERA act, all builders and real estate developers are entitled to share all the information of their project to the buyers. This information includes layout plans, completion stages, plan of execution, competitive projects, etc.

2) Standardized carpet area:

     Before RERA, there was no formula for calculating carpet area and setting prices accordingly. RERA has made this easier by defining the carpet area as the net area that can be used, excluding external walls, balconies, terrace and service shafts, but including are covered by internal partition walls.
Because of this definition, Builders need to clarify the carpet area that they are selling.

3) Rights of buyers in case of defect in the property after possession:

     RERA stipulates that if there is any defect or default in construction in apartment or house, the builder/ developer must do the necessary repairs. This right can be availed up to 5 years after possession. The repairs must be done within 30 days of detection.

4) Grievance redressal authority:

     If a scenario occurs, where in buyers are not satisfied with the construction, or have any other complaints, RERA has set up an Appellate tribunal in every State to address these issues and to come up with solutions that will meet buyer’s satisfaction. The issues must be addressed by the tribunal within 60 days of lodging complaint.

5) Rights of buyers in case of delay in possession:

    According to the regulations stated by RERA, the real estate developers need to specify the date when they will hand-over the possession of a property to the buyer. If they are unable to do so they will have to pay a penalty determined by the appellate tribunal. If the builder cannot finish the project within stated time, they must face penalty.

How Property Clinic will help with RERA?

     Property Clinic is your best friend when it comes to buying a house. Buying a house is a difficult process. We are with you every step of the way, and the first step is finding a place that is RERA approved. Property Clinic will only recommend RERA approved properties and will also ensure all the ticks are checked. We want you to get the best out of your dream house. First-time homebuyers are not aware of government schemes and bills regarding real estate and this is where we come in. Property Clinic helps empower the buyer so that they can invest in real estate without hesitation and fears about getting cheated.