Are Buying RERA Registered Apartments Beneficial?
The Real Estate Regulation And Development Act was passed by the Indian government in the year 2016. However, all of its sections came into force only in the year after (May 1, 2017). It aimed at keeping a close watch on the real estate sector. Under the act, the Kerala government established the Kerala Real Estate Regulatory Act or K RERA. The act can help bring more credibility and transparency to the real estate buying procedures.
All real estate projects except the following come under RERA.
- Projects in which the area of land is not more than 500 square meters or the number of apartments is less than or equal to eight.
- Projects in which the promoter has received a completion certificate for the project before the enactment of RERA.
- Where the construction work is only limited to repair, renovation or redevelopment and does not involve any advertising, marketing, allotment of apartment, building, etc.
Benefits Of RERA
- A standard method has been defined by the RERA act to find the carpet area of an apartment and this formula applies to all the developers and builders and thereby ensures that are no differences in the calculation of carpet area by various builders.
- The act suggests that the interest paid by both the builder and as well as the buyer must be the same.
- RERA can help decrease the risk of builder insolvency or bankruptcy. This is made possible by ensuring that the money raised will solely be utilized for the purpose for which it has been raised.
- In the case of a builder backing out from the deal, the buyer is permitted to retreat from the project with a full refund alongside the claim compensation and the respective interest.
- As per the act, the builder cannot demand more than ten percent of the total cost of the apartment in advance before finishing the sales agreement of the project.
- The builder will need to ensure a warranty of five years for the property against any structural flaws. In addition, the buyer of the property will be entitled to claim compensation if the builder fails to repair the damages.
- When the possession of a property is delayed by the builder, a buyer has the right to file a case against the builder and claim a refund.
RERA has made the process of purchase registration and complaint registration in case of project delays easy. There is a separate system named RERA grievance redressal that is solely aimed at addressing the complaints of the buyers.