What is RERA Act in Real Estate?
The RERA (Real Estate Regulation and Development) Act was primarily enacted to create accountability in the real estate sector in India. RERA is basically meant to protect the interests of homebuyers from the fraudulent activities of a section of builders, with the objective of bringing greater accountability and transparency into the real estate market. Since the Act came into effect from May 1, 2017, homebuyers now have an efficient platform to take builders to court if they backtrack on any part of the homebuying agreement process.
Here’s a look at some of the key features of the RERA Act:
State RERA Bodies
Every Indian state is required to have its own RERA set up, where it can handle and oversee the real estate sector under its jurisdiction. Likewise, all local builders in Thrissur are expected to register their projects with this body.
Project Registration
Its mandatory that all new and ongoing projects must be registered with the state’s RERA body. Those buying ongoing apartments in Thrissur such as the Vishraam Opus or Vishraam Limelite needn’t worry as these projects are registered with RERA. Builders are also expected to provide detailed project plans and timelines for completion.
Delays and Compensation
As per the rules of RERA, there are penalties for delays in project completion and the builder will have to provide mandatory compensation to the homebuyer for the delay. RERA provides a platform for the resolution of these disputes.
Greater Transparency
To help potential homebuyers in making informed decisions, RERA insists on greater transparency from the developers, obligating them to provide detailed and accurate information related to project land, layout, status, approvals, etc. When planning on buying a home, look for builders in Thrissur with RERA-registered projects.
Workmanship Liability
It should be noted that it’s the clear responsibility of the builder to repair and address any poor workmanship or structural defects in the building, for a specified period of time after handover.
Separate Escrow Accounts
A specified percentage of the funds received from homebuyers is mandated to be deposited into an escrow account and used for project construction. This prevents diversion of building funds.
Carpet Area
Another significant parameter introduced by RERA was the definition of ‘Carpet area’ – this is ‘the net usable area within the walls of a residential unit’. This standardization has prevented the malpractice of misleading marketing practices that fooled many a homebuyer.
Online Complaint Forum
RERA provides an online complaint redressal platform against builders or real estate agents and helps resolve them in a timely manner.
On a final note, the RERA Act not only protects the homebuyer’s interests, but also the builder’s, in case of any discrepancies. This landmark legislation has brought in positive changes into the real estate market, while also boosting investor confidence. Homebuyers need no longer worry when investing their hard-earned lifelong savings if it is into a RERA registered project.
