Advantages of Buying RERA Registered Projects

The dream of being a property owner has become easier for almost every aspiring home buyer in India. The top reasons for realization of this dream are the unveiling of Pradhan Mantri Aawas Yojna [PMAY] Scheme that offers subsidy to the home buyers up to a limit and under certain conditions. Then the formation of Real Estate Regulatory Authority Act also known as the RERA Act.

Buying RERA Registered Projects

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This law started its full-fledged working from 01st May 2017. The guidelines of this Act help the home buyers in each aspect of the home buying procedure. The fool-proof working of the RERA Act leaves no loopholes from where the developer/builder can escape after selling a property via wrong ethics. A home buyer can keep his money and property safe by opting for a property purchase in the project registered under the RERA Act of that particular State.

After framing of this Act, all upcoming housing and commercial projects were mandatory to register on the RERA portal of that particular State by 31st July 2017. Like the commercial and residential properties projects in the Uttar Pradesh State are listed on website along with their status such as completed, under construction and yet to start.

The transparency that RERA Act offers is the strongest support for all home buyers and thus you must know the advantages of buying property in the projects registered under the RERA Act.

Advantages of Buying Property in RERA-registered Projects:

  • The first good news for the home buyers is that the developer/builder has to offer the timely possession of your home. In fact, the developer /builder is also required to divulge the particulars of the project such as the carpet area, Floor Area Ratio and a number of housing units to the interested home buyers.

  • Then, the developer/builder is obligatory to stock up the 70 percent of the money paid by the client into an escrow account. This amount is solely kept for the purpose of building your dream home and not to be used for any other project.

  • Another key point is that the developer/builder cannot ask the homebuyers to pay for the super built-up area and the person is now required to pay only for the carpet area.

  • Then, the developer/builder also requires clearances from all departments such as Sewage, Sanitation, fire etc.

  • Also, the developer/builder must take a written consent from the home buyers to make changes in the Site Plan. Also, it is mandatory for the developer/builder to deliver amenity-enabled housing units as promised by him/her at the time of booking.

  • The developer/ builder is accountable for any defect in the housing structure for five years from the time of possession.

  • The developer/builder is also liable to pay the interest to the home buyer in case the completion of a project is delayed. This interest is supposed as the EMI that the prospect is paying to the bank.

  • This Act  strengthen the power of the homebuyers as they can file a written complaint to the developer/builder for the maintenance of the property up to one year from the time of possession in accordance to the after-sales services.

Interestingly, the home buyers investing in Non-RERA projects can also file a complaint against the developer/builder with the State RERA against the wrongdoings for the developer/builder. But, be a smart home buyer and plan to buy a home only under the RERA registered projects.