The Real Estate Regulatory Authority (RERA), established in 2016, stands as a beacon of transparency and accountability in the Indian real estate sector. Its primary goal is to safeguard the interests of property buyers by setting standards and regulations for developers, builders, and property agents. Here we delve into the significance of RERA, its benefits, and the pivotal role of the RERA certificate.
What is RERA?
The dream of owning a home is a dream of all, but the exorbitant cost and varied practices of developers and builders often makes this journey a difficult one. Prior to 2016, the real estate industry lacked standardized norms and regulations, leaving buyers vulnerable to both good and bad experiences. To counteract this, the government introduced the RERA Act.
RERA’s core purpose is to augment accountability and transparency within the real estate sector. It mandates specific guidelines for construction and development, aiming to elevate transparency in transactions. Additionally, it confers various rights upon homebuyers and imposes strict rules on builders and developers. It also gives clarity on defaulting customers.
The Formation and Structure of RERA:
Under the RERA Act, a Real Estate Authority and an Appellate Tribunal were established for each state. These bodies serve as the grievance redressal mechanism for homebuyers in case of any wrongdoing by developers or builders. This avenue provides a vital recourse for aggrieved parties seeking resolution.
Benefits of RERA:
- Standardized Carpet Area: Prevents price inflation through consistent area measurements.
- Escrow Account Deposits: Mandates 70% funds allocation for the designated project to ensure completion on time
- Limit on Advance Payments: Protects buyers with payment caps, allowing time for fund arrangement.
- Project Information Access: Ensures comprehensive project details are available to homebuyers and financing banks and institutions, alike.
- Defect Rectification: Provides for quality construction by stimulating Builders must fix structural defects within five years of possession at their cost.
- Equitable Interest Rates: Applies equal interest rates for possession delays to both buyers and promoters.
- Consent for Plan Changes: Builders require buyer consent for alterations, with major changes needing two-thirds buyer approval.
- Discrepancy Redressal: Allows buyers to reject properties with substantial deviations and obtain full refunds.
- Title Defect Compensation: Provides compensation for title defects at the time of possession.
- Grievance Redressal: Offers a robust complaint system, allowing parties to escalate issues to the Appellate Tribunal if dissatisfied.
The Significance of a RERA Certificate:
A RERA certificate is a legal document bearing the unique registration number of a property or project registered with the state-level RERA authority. Without this certificate, advertising, booking, or selling of the property is prohibited. The certificate enhances the builder’s credibility, provides critical project information, and ensures compliance with RERA regulations, thereby safeguarding the rights and interests of buyers.
Conclusion:
Since its inception, RERA has been instrumental in revolutionizing the real estate landscape in India. Builders and developers are now mandated to adhere to stringent guidelines, while buyers are empowered with a robust grievance redressal mechanism. The RERA certificate serves as a testament to compliance with these regulations, fostering transparency, credibility, and accountability in the real estate sector. With RERA in place, the dream of homeownership in India is backed by a solid foundation of trust and integrity.
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