Solving the increasing rate of issues faced by the home buyers, RERA Act has been a guardian angel to the real estate sector of our country. The RERA Act, consented by both the houses of the Indian Parliament,came into full force nationwide on May 1, 2019.

This act was formulated by the government keeping in mind the interests of the home buyers and the growing lack of transparency and accountability of the developers. Considering the many reported cases of paperwork issues, delayed possessions, illegitimate project plans, the act was put into action in order to place the control in the hands of the home buyers rather than the developers.

The provisions of the RERA act have been designed in such a manner to benefit the home seekers and also introduce a sense of reliability and legitimacy in the real estate business.

Today, in this article we will focus ourselves, with the major provisions of the RERA Act and analyze how it benefits the buyers:

1. Uniform Computation of Carpet Area:

The uniform computation system formulated by the government to reckon the carpet area has led to a drastic decrease in the property rates which has definitely favoured the financial interest of the public.

The reason behind this decrease is the uniform computation system introduced in the realty. Now, every developer has been deprived of their freedom to compute the carpet area on their terms and are rather entitled to charge the buyers on the basis of carpet area calculated through a uniform methodology.

2. Strict Penalties On Delays Caused By Developers:

Since the past years, the rate of complaints regarding incomplete projects and delayed possessions witnessed a great growth in numbers. According to the new provisions in the RERA act, the consumers are allowed the freedom to claim reimbursement or possession from the developers on the said date.

Apart from this, the regulatory body would be monitoring the work progress of the projects registered by the developers and therefore, any delay caused by any builder would result into them paying a large sum of money as a fine.

Such a provision helps to safeguard the financial interest of the home seekers.

3. Reduced Chances Of Frauds & Bankruptcy

According to the previous scenario, the developers used to run multiple construction projects at a single time due to which many times arisen where the builder went bankrupt which led to heavily delayed possessions and sometimes, the filed complaints and court cases became a tedious and lengthy process.

Solving this issue of the home buyers, The RERA act makes it mandatory for all the developers to submit 70 percent share of the total estimated project cost and can withdraw it on monitoration by the regulatory authority.

This would reduce drastically,the chances of delayed project completions as the expenses would be monitored by the authority.

4. Transparent Approach Between The Home Buyers & Sellers

According to the provisions of RERA act, the buyers are allowed to acquire all the major to minor details and specifications of the project that they have invested in. This eliminates the chances of fraud and fake cases of developmental project scams.

5. Full Reimbursement In Case Of Delay

The RERA act allows the home buyer to claim full amount paid from the developer as well as the liberty to detach themselves from the agreement in case of any delay in possession caused by the developer.

6. Decreased Rate Of Prior Renumeration Paid By Home Buyers

According to the latest provisions,the developers do not possess the liberty to charge the home buyers with more than 10 percent of the project cost of the said property to be bought.

7. Free Of Cost Rectification Of Defects After Property Sale

The developers are bound to correct any shortcomings discovered by any of their consumers within a time period of five years after the property/house/villa/apartment has been sold. In case of any major shortcoming, the developers will be liable to pay the said compensation to the home buyer if he/she wishes to abandon the property.

8. Formation Of Separate Authority To Consider Consumer Grievances

The RERA act provides the privilege to the home buyers to file a case against the construction company or the developer in case of any issues regarding the property. The authority will be responsible to redress the file of the home buyer within a span of 2 months maximum.

This will help in easy and quick re-dressal of property related issues and hence would help the authority to stop the further arisal of any such issue as well as ensure punishment and penalties against the developer who has been reported.

9. Righteous & Justified Property Rates

In consideration of the RERA, it is a compulsion for the developers to fix the sale price of their projects solely depending upon the carpet area. This helps in safeguarding the financial interests of the home buyers by ensuring Justified and legit Property rates. It also aids in reducing the financial stress on the buyers.

10. Certified Availability To Information

The developers are bound to provide any information that the home buyers desires to acquire in relation to the property that he/she has bought. None of the home buyers can be denied from any sort of information regarding their property by anyone.

The RERA act makes it mandatory for developers to submit correct and authentic information about a project which avoids the cases of false representations and real estate frauds.

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