Real Estate Regulatory Authority or RERA rolled out in May 2016. This central government issued Act aims to establish transparency between a buyer and a seller in the real estate sector. According to this Act, a builder is subjected to inform property details to the customers which are under the latter’s rights by jurisprudence.
First-time homebuyers can gain multiple benefits courtesy this Act –
Real Estate Regulatory Authority aims to reduce misleading information relayed about projects and delays in property handover. The authority has made it mandatory for developers to carry out their RERA registrationbefore starting any project to mandate uniformity.
The rules of this Act are applicable to both commercial and residential properties.
Among the different benefits of the Real Estate Regulatory Authority, a uniformity of default penalties has been established. According to this rule, both the parties are subjected to an even interest rate, which they have to pay in case of default.
According to another rule of Real Estate Regulatory Authority (RERA full form), individuals who avail a home loan to purchase a house can be assured regarding the accurate usage of their advance. The authority of this Act has made it mandatory that builders have to put aside 70% of the funds into a specific account, which they can only use for construction purposes.
Furthermore, builders cannot charge more than 10% of the cost of the plot as an advance fee.
The RERA Act in India aims to make real estate purchases not only easier but also more transparent.
Must Read:- 5 Benefits of RERA Act for Aspiring Home Buyers
