To assist prospective homebuyers and increase investment in the real estate industry.
The Government of India rolled out the Real Estate Regulation and Development Act or RERA Act.
Here are the 5 major benefits of this Act that every aspiring homeowner must know –
- Introduction of this Act has standardised the calculation of a property space based on the carpet area and not the super built up area. Previously this calculation was random leading to varied pricing.
- Before this Act, developers used to move funds from one project to other causing delays in more than one such real estate projects. But now, funds for a specific project are deposited in a separate bank account and can be withdrawn only after approval from an architect, a chartered accountant or an engineer for that project. This reduces the chances of a developer becoming insolvent.
- Under this Act, promoters have to repair any damages to the home within 5 years of possession without demanding charges.
- Buyers have the full right to acquire any and every knowledge they require about the property.
- Under this Act, buyers are eligible to a full refund in case of proven disparity between proposed or advertised features and those finally made available to the buyer.
Every aspirant homebuyer should know all about RERA act before investing in a property.
This Act has brought much-needed transparency in the real estate sector. But home buyers need to opt for a RERA registered project to secure their investment. Buyers can avail cost-effective home loans provided by HFCs to ease their home buying process.
