Introduction

RERA stands for (Real Estate Regulatory Authority)-The act was introduced by Govt in 2016 to protect the interest of buyers & investors. This Act is introduced in every state. All Real estate Developers & Promoters should strictly adhere to the RERA registration. The RERA Act makes sure that developers and Builders stick to legal and fair practices.

Investing in property is a huge and mostly one-time Investment. While making the decision of investing in real estate it is very crucial to check that it is registered under MahaRERA Act.

Let’s Learn the Importance and Benefits of RERA Registration.

1] Protection of Buyers’ Rights & Interest:
The first and most important benefit of the RERA Act is, it protects the interest of buyers or investors. It prohibits Real estate developers from giving any misleading and false information regarding the property. If any wrong information regarding property is provided by the property developer which does not align with the buyer’s interest, then the buyer has the right to take action under RERA Act.

2] Delay in Delivery of Property:
Under RERA Act, Property developers have to strictly stick to the guidelines and follow the rules. The Date of completion of Projects should be given accurately to the investors. There shouldn’t be any delay in the delivery of Projects. If there is any delay then real estate developers are liable to pay the interest.

3]Transparent Transaction:
Property developers are only permitted to request a 10% down payment from investors under the RERA Act. All transactions above 10% need to be made post-registration of the property.

Separate escrow accounts for deposits from buyers and investors are required by the RERA Act. Builders are allowed to use 70% of investor funds just for land-related construction expenditures. The remaining 30% might be utilized for various reasons by builders.

4]No extra or Hidden Charges:
Carpet area Per sq. ft cost should not include Built-up and Super built-up area. Builders are authorized to charge the amount as per carpet area only. The amount mentioned in the agreement should be as per the carpet Area.

Earlier there was no standard rule for the calculation of the carpet area but after the RERA Act, the calculator of the Carpet area is Standard under the Act for each property developer.

5] Regulatory Body:
If buyers acknowledge any wrong practices or frauds on the end of the real estate developers they can take it to the regulatory authority, which is typically in the form of a Real Estate Regulatory Authority or an Appellate Tribunal. Here the problem will be solved quickly with very minimum charges and without lengthy legal procedures. Also, Builders will be liable for the punishments accordingly.

RERA registration has brought a positive impact in Real estate industry by safeguarding the interests of home buyers. It helps to create trust amongst the investors and real Estate Developers.