Not many know this, but RERA or Real Estate Regulation Authority came into effect on 1st May 2017 to protect the interests of home buyers. This scheme aims to introduce transparency and regulation in the process of property buying.
The Need for RERA
For many years, the real estate industry was operated as per the convenience of the developers, builders, real estate promoters, and property brokers. As a result, property seekers, especially homebuyers, faced many challenges while purchasing and occupying the property.
Some of the problems that real estate buyers faced before RERA:
- Being charged hidden amounts
- Delay in the construction of projects
- Deviation from the sanctioned plan
- Raising the price of the property despite receiving token amounts
- Cancellation of the contract without a strong-enough reason.
RERA was introduced as an independent regulator for the real estate industry. Under RERA, any property which is more than 500 square meters, or more than 8 apartments needs to be registered by the builder.
Along with the registration, the builder or developer also needs to submit the details of the project along with regular updates. RERA has strict rules about the quality of construction and timely deliveries, charging heavy fines in case of delay. An appeal filed under RERA has to be resolved within 60 days. Consumers unsatisfied with the RERA decision can also escalate their appeal to a court.
Difference Between RERA Registered Projects Over Other Housing Projects
There are many advantages for buyers to purchase a RERA registered property over other housing projects. Builders and developers also benefit under this act in many ways, as given below:
Transparency of Property Details
Buyers purchasing property under RERA registration will have access to housing project details that are otherwise not readily available. These details include:
- Number of houses already purchased and occupied
- The exact floor plan including the carpet area and common areas
- Date of completion of the project along with regular updates
- The developer’s track record of timely delivery, and quality of construction
Easy Processing of Home Loan
It is easier and faster to receive housing finance for a RERA registered property over other properties as financial institutions have higher confidence in RERA branded homes. Potential homeowners can even apply for a subsidised home loan interest rate under PMAY, which may not be otherwise available.
RERA Badge of Honour
Builders can use the RERA stamp of approval as an added selling point for their properties. As a RERA approval equals superior quality, they can use this certification to demand better prices. Developers can even tie-up with financial institutions to provide higher home loan eligibility and fast processing to potential buyers, thus increasing their turnover.
RERA aims to reduce the discrepancies faced by both property buyers and sellers, increasing transparency and reducing the risk of operating in the real estate industry.
Are you looking to avail a home loan to buy a RERA approved home? If so, then conduct a thorough online search for the right EMI terms with the help of a home loan EMI calculator. Doing this before filing the actual application will inform you of your loan affordability.