RERA – Its Importance And Impact

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RERA Its Importance And Impact
Introduced in the year 2016, RERA has proven to
be a huge advantage for each one looking to buy
a home, but is fearful of getting trapped amidst
the plaguing real estate market. Fraud builders
and agents have been manipulating the market
since years, leading to numerous real estate
scams. But, the fact is that all such scams and
frauds have been doable only because of the weak
regulatory framework, where there have been no
standard pricing policies, or other rules that
need to be followed by builders or buyers. To end
all such fraud, and bring transparency and
genuity to the real estate market, the Indian
Government finally decided on introducing a
proper system, which came to be known as the
Real Estate Regulation Act (RERA). What is the
RERA Act about? The purpose of the RERA Act has
been to bring about accountability and
transparency in the real estate industry with
strict and fair rules for all. This will bring
to the forefront only genuine builders, thus
keeping property buyers at peace, assuring that
they get hold of only legal land that is free
from illegal construction, title frauds,
deliberate delays, false promises, and much
more. As per the Act, every builder, broker,
real estate agent, and promoter is required to
officially register themselves as well as their
projects with RERA, before
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beginning any kind of construction projects that
are more than 500 square meters, or eight
apartments. There should be complete details
about the project, starting from the project
title, type, and location, to the carpet area,
floor plans, date of completion, and every other
important aspect. Further, every developer
should compulsorily apply for the completion
certificate within the mentioned time
frame. For strict enforcement of all the
proposed RERA rules, every states Real Estate
Regulatory Authority takes care of the law
implementation, and all the complaints of the
buyers and investors. How has RERA benefitted
the buyers? Complete access to every project
detail Thanks to RERA, buyers can now have
complete access to every project detail. Before
purchasing, buyers can go through every detail of
the project they wish to invest in, from the
RERA website. This includes the project title,
location, square feet, layout, and everything
else. Perfect calculation of carpet area
available Within the RERA registration,
builders need to mention the carpet area of every
room in the house, which means the area without
the walls of the room. This is a major advantage
for the buyers as there is always a possibility
for a 30-60 difference between the carpet and
saleable areas. With the RERA registration
details, buyers can get to know the exact area of
each room theyll be receiving.
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Updated information at all times As per the
RERA Act, builders are required to keep updating
the projects progress from time to time. The
current state of the project, every three to four
months, should be updated, in order to keep the
buyers informed. Notifications for any kinds of
changes and tweaks Oftentimes it is seen that
builders keep making changes to their projects to
save money, even after taking the complete
amount from buyers. Buyers can do almost nothing
to fight this wrongdoing. But, thanks to RERA,
this kind of cheating has now become a
punishable offense. RERA requires that any
changes to be made to the project must be
mentioned on the site, and must first be
approved by at least two-thirds of the buyers.
Even after approval, the new altered plans and
layouts need to be uploaded to the site before
executing them. Project completion within the
timeframe RERA necessitates that the project be
completed within the agreed-upon deadline. On
failing to do so, the builder is mandated to
either return the entire money to the buyer
along with the interest, or pay interest for
every month that the project gets delayed. In
any way, this benefits the buyers, as most of the
times this results in completion of the project
on time and if not, buyers at least get a good
sum of compensation for the delay. Proper
management of money invested As per RERA, 70
of all the investments and advance payments that
buyers and investors pay to the builder must be
stored in a separate bank account. In addition,
a clear account of how the money is being used
also needs to be stored
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here. This way, the money invested in one project
cannot be used elsewhere hence buyers know that
their money is going exactly where it needs to
go. Complete support for complaint
registration Finally, RERA also supports buyers
to address any complaint they have against the
builders something that hadnt been possible
before the Act came into existence. RERA gives
complete authority to the buyers to file a
complaint about any big or small issue, thus
supporting them to handle any matters of dispute
between the builders and buyers. And, after the
RERA regulators give any order to the builders
regarding the buyers problems, they must follow
the order, and rectify the same within two
months. What impact has RERA made on
builders? RERA requires every builder to register
themselves, as well as their projects, with
complete detailed information. The RERA
authorities then cross-check all the details
before approving them. This keeps realty
developers from committing any frauds, thus
eliminating all fake and deceitful developers,
thereby giving opportunities to only the right
builders. In addition, buyers will go through all
the previous projects of a builder before
investing in their new project. This brings to
reputed builders, with multiple previous
projects, a possibly higher market share. In
this way, RERA has also proven to be an advantage
for genuine builders, against other fraud realty
developers. One such genuine reputed builder is
MJR Builders, who has been delivering happiness
and satisfaction to customers since almost two
decades. Now, weve come up with our new MJR
Opus scheme, where were offering residential
plots for sale in Bangalore, strategically
located on Bagalur-Sarjapur Road, with all kinds
of amenities you may require, such as
amphitheatre, kids play area, club house, park,
cricket pitch, swimming pool, and lots more.
When youre looking for a home that is beyond a
retreat, you can always get in touch and book
your favourite spot at these acres of peace,
nestled in greenery and tranquillity!