RERA Act Made Simple
The Real Estate Regulatory Authority (RERA) Bill was passed in March 2016. RERA Act main aim is to modulate and increase transparency. As the real estate sector has grown in recent years, the Government of India observed a need to introduce the RERA Act. Its primary purpose is increasing consumer protection and safeguarding from fraudulent activities.
How does RERA work?
To successfully develop and sell a property, all certified real estate developers are required to register with the Real Estate Regulatory Authority (RERA) of their respective state.
Any property in more than 500 square meters of land or housing more than eight apartments should be registered under RERA. This appeal to register the property either gets accepted or rejected in a period of 30 days. Once the property gets successfully registered with RERA, the developer is provided with the following details:
A unique registration number
A Login ID with password
The developer has to login into the RERA website with the above-mentioned details. And fill in information about the property. Once completed, the certified developer is licensed to sell their property. The developer has to quote its unique registration number in every transaction.
Why was RERA introduced?
The RERA bill was primarily introduced to benefit the consumers. To make sure that all the money which goes into the colossal sector of real estate is accounted for.
Reforms introduced by RERA:
State level authorities:The RERA bill ensures that each state of India has a RERA body. It regulates the transactions and maintain financial transparency for residential and commercial properties.
Pricing based on carpet area:The pricing of properties has to be on the carpet area and not the built-up area. So consumers will essentially be paying only for the area which they will be using. And not the built-up area of the walls and the common lobbies of the property.
Focuses on timely completion:The bill ensures that the on-going projects are completed on time. It is compulsory for developers to have a dedicated bank account for each development. These bank accounts are obliged to reflect 70% of the proceedings of the respective project to avoid the developers from using the funds dedicated for one project on other upcoming projects. This, in turn, ensures timely completion and handovers. Invest in properties from recognised developers, like Vaneet Infra, who are “On time Every time”.
If the project anyway gets delayed, the developer is liable to pay the EMI which the consumer is paying to the bank.
Clarity between both parties:The RERA bill focuses on increased transparency between the developers and the buyers. It is mandatory for the developers to share important information with potential buyers. Like project plan and layout, time of completion and the project approvals.
All power goes to the consumer:The buyer can approach the developer within one year of the project handover for maintenance services and in the case of any defects in the project. This pushes the developers to ensure the property is of high-quality and does not have any deficiency.
The developers do not have the authority to make any changes to the plan or pricing of the project without prior written consent from the buyers. This provides an added benefit to the buyers. They receive the property which they have signed up for and there is no room for any fraudulent activity.
Buying a property is a milestone for every potential buyer. The RERA bill is guaranteed to instill clarity and confirm fair-play. It will also assure timely handovers and eliminate fraud in real estate sector.
Make sure you buy your property from esteemed builders like Vaneet Infra. We offer hassle-free transactions and on-time project completion.