To introduce transparency in matters relating to house property in terms of house construction and the process of purchase, the Real Estate Regulatory Authority (RERA) Act was passed in 2016. The RERA Act deals with matters related to house projects.
If you plan to invest in a house property, or you are a potential customer for a home loan option, learn about the RERA Act. This Act was formed to safeguard the interest of a home buyer.
Owning a house is a dream for all, and you are not an exception. Before buying a property, you may scout around to get the best home loan interest rates; and to arrive at the scheme that suits your needs the best, you may also use the home loan EMI calculator, which you will find on various related websites. But you must also be aware of the nuances of the RERA Act that was formed to take care of your interests.
The following are the benefits of buying RERA registered apartments:
- Controlled Down Payment
As per the common trade practice, the real estate developers take an advance from the buyer as a down payment towards the property. The builders may ask for a sizable amount, which may be beyond your means. If the property in question is registered under the RERA Act, the builder cannot charge more than 10% of the construction cost as a down payment. This capping acts as your savior and exempts you from spending a lump sum amount.
- Consistent Method For Measuring Carpet Area
In the pre-RERA Act times, the real estate developers used to specify the carpet area of the apartments as per their standards of measurement, which suited the developers’ needs.
However, the net usable area of an apartment is to be considered as the size for valuation as per the RERA Act. The external walls, open terrace, or an exclusive balcony are not part of the carpet area of the apartment under RERA. Thus, the carpet area is clearly defined, which has a direct bearing on the property price.
- Clear Timeline For Project Completion
The delay in the hand-over of the property puts a spanner in your financial plans, but you never had any alternative earlier. For any RERA registered apartments, the real estate developer must complete the project and hand over the same to you within stipulated timelines. In case of any delays completing a RERA registered apartment, the builder has to pay the penalties.
- Protection Under Construction Defects
If it is a RERA-registered property, the developer is bound to repair and fix any defect associated with construction. This protection is valid for up to five years from the date the buyer moved into the apartment. The repairs to the inherent damages in the apartment must complete within 30 days from detection.
Apart from the benefits listed earlier, as a buyer of a RERA registered apartment, you have the right to approach the Appellate Tribunal in case of any litigation. But if you are buying a new apartment, consider the RERA registered ones, as they take care of most of your hazards.