Real Estate Regulatory Authority Act rolled out in the year 2016, and it aims to eliminate the discrepancies within this particular sector. This Act thrives on establishing transparency in the real estate sector and has been successful so far.
The reports of 2019 suggest that the RERA Act has profoundly helped home buyers resolve approximately 20,000 cases of discrepancies.
One of the primary regulations implemented by the Real Estate Regulatory Authority (RERA full form) Act is to register under-construction properties wherein the land is above 500 sq. m. There are a few other provisions included in this Act which makes purchasing a property safe.
Following are a few benefits than an individual can avail by purchasing a property under RERA registration –
- To maintain transparency, a builder is subjected to disclose every detail of a property to the buyers.
- If an individual has availed a home loan to purchase a property, he/she can be assured of their advance’s proper usage. As per mandate under the Act, builders have to put aside 70% of the money into a segregated account, funds from which can only be used for construction purposes until complete handover of the apartments/villas to buyers.
- A builder who is not able to complete the work within a promised period is subjected to pay 2% interest over the current MCLR. Such regulations not only establish transparency but also increase work efficiency.
- Another regulation implemented within this Act is that an individual can report for any type of construction disputes till 5 years after property handover. A builder has to resolve the dispute within 120 days.
The RERA Act in India has implemented few regulations which establish transparency between builders and their customers. Furthermore, this Act has made purchasing a property safer, less cumbersome, and more financially beneficial for buyers.
