The Government of India has pinpointed a highly prospective Indian real estate sector as a key stakeholder for the future financial growth of the nation. One of the steps it has taken is the state-wise implantation of the RERA Act. RERA full form is Real Estate Regulating Authority, which introduced a legislature of the same acronym but expanded as Real Estate Regulation and Development Act in 2016 to safeguard the interest of the property buyers.
RERA has aims to protect prospective buyers from malpractices and other inherent issues of the real estate market. It includes certain rights for homebuyers and also for the developers or builders. According to this Act, the builder has to inform buyers about the progress of constructions. Also, they have to provide possession of the property to homeowners within the pre-specified deadline.
Major benefits of the RERA Act
- It streamlines carpet area calculation for builders to follow as per an area of jurisdiction.
- It has ensured that developers cannot take more than 10% of the price as an advance.
- Individuals can register an official complaint if they are not provided possession of their property within the stipulated time or for other reasons if a builder does not meet the regulations mandated under the Act.
- This Act has brought clarity and transparency in real estate industry. To know more about RERA Act, you can visit websites of a few renowned housing finance companies.
This Act covers all residential and commercial construction, including shops and offices. So, before applying for a home loan, ask for the RERA registration number of building developer.
Also Read: - Advantages of RERA for Homebuyers