Sometimes we invest our years of savings in buying our dream home because it is perhaps one of the great financial achievements for any person’s life. In earlier, not everyone could afford to buy real estate properties.
To conclude it all, almost every homebuilder or developer sets a standard for their convenience, which adds to the misery of the buyer. In earlier, the agreement between buyer and builder was made to create benefit to the builder. Therefore, to protect or protect the interests of investors, the government has developed a set of regulations collectively known as the RERA Act.
RERA Blessing to real estate buyers
The Real Estate Regulation Act or RERA was introduced in 2016 to provide buyers with relief from bad practices implemented by builders. The RERA specifies certain guidelines that create transparency of transactions in the real estate sector. The law also specifies the creation of a separate real estate authority and court of appeal on the part of the real estate builder where homebuyers can file complaints in the event of a breach. That's why it's important to buy a new or ongoing project for RERA.
RERA standardized the carpet area
Prior to RERA, the area of carpet for which builders calculated prices was undefined. Therefore, each constructor had its own calculations and caused many inconsistencies. Therefore, a standard formula was developed under RERA to make the calculation of carpet area easier and common to all builders.
RERA provides a reduction in down payment
This was one of the main factors that made it difficult for the average-income man to buy a dream home. Previously, real estate developers charged a down payment of almost 40% to book an apartment. However, RERA regulated it below 10%, making it easy for anyone to buy an apartment. Both new and ongoing projects, allowing buyers to book a dream home for only 5% to 10% of the total cost of the apartment.
RERA reduce the risk of bankruptcy of builders
In some cases, builders made money from homebuyers based on proposed projects and used those funds for other purposes. They later filed for bankruptcy, and homebuyers lost their hard-earned money. Due to regulated RERA, builders are responsible for depositing 70% of the amount associated with the project in another bank account. The amount can only be withdrawn after the completion of a project certified by a registered civil engineer, architect, or certified accountant.
RERA provide claim compensation
After a few years, if you find any structural defects in quality, finish, or interim service, you are entitled to claim compensation. RERA entitles the purchaser to provide any defects found within five years of ownership. The best builders like WTC Noida CBD, Godrej Properties, Tata Realty, Mahagun Group, ACE Group, Bhutani Infra, Majestique Marbella Pune, use the highest quality materials and employ qualified and experienced civil engineers and architects to provide quality living on new ongoing projects.
