Answer – According to the experts, implementation of the RERA Real Estate Act will bring in transparency in the real estate sector, and homebuyers will no longer have to feel worried about their investments. Similarly, the builders will now be made more responsible since they’ll have to meet the construction deadlines as well as the quality.
The primary objective of RERA is creating a transparent system between the homebuyers and builders, in a way that there’s benefit for both the parties. The interests of the buyers are taken as top priority and the act ensures complete customer satisfaction.
The benefits that buyers will get through the RERA Real Estate Regulations & Development Act include:
- Escrow account: Under the act, builders will be required to make a deposit of 70 per cent of the collected amount in an escrow account to ensure that this money is not diverted from one project to another. This money will be withdrawn as per the stages of construction, approved by engineers and chartered accountants of builders. There will be fines and penalties if the developer does not adhere to delivery guidelines.
- Pay Only For Carpet Area – From May 1 when the RERA act comes in full force, the buyers will be required to pay only for the carpet area (area within walls). The builder can’t charge for the super built-up area, as is the current practice where the buyer gets only an area of 900-1000 sq. feet carpet area having booked an area of 1300 sq. feet. According to the new law this practice will no longer be active.
- Clearances Before Selling – Builders will now be able to see the projects only after getting the necessary clearance certificates from the authorities. Under RERA, builders and agents will first have to get them registered with the regulator, get all the projects with more than eight apartments registered before the launch date. Doing this will stop the malpractice of selling property before getting the necessary clearances; and the builder will now be required to give the details of the carpet area, etc.
- 5 Year Warranty – The builder will have to provide for any structural defect in the building for five years. However, the law doesn’t define structural defect clearly, which may lead to disputes between builders and homebuyers.
These 4 points mentioned above are the major benefits of the RERA Real Estate Act and are the reasons for the happiness of homebuyers.
Read more about the RERA Real estate Act