RERA (Real Estate Regulatory Act) will bring more transparency and standardisation in real estate industry for every home buyer. After coming into effect, RERA will give more protection to home buyers for their investment and they will be able to invest in the industry with more confidence.
If you are thinking of buying a property, you should know various things about the Real Estate Regulatory Act before buying a property. But you also need to understand the act.
What is RERA?
The sole purpose of Real Estate Regulatory Act is to increases transparency in real estate industry. RERA bill will provide better protection for buyer’s investment and will make transactions more transparent between the builders, buyers and brokers.
The Government has announced that all the developers and agents will have to be registered with RERA. Developers will have to share all the information and details related to their real estate project with the government’s website.
Here are some important things, which you need to know to get more benefits with the Real Estate Regulatory Act.
According to the government, when the builder gets money from a buyer he/she will have to deposit 70 percent of the money in a separate escrow account. The money can’t be withdrawn without the permission of chartered accountants, engineers and builders.
The money will be held by a third party. Sometimes, developers invest the buyer’s money, start new projects and fail to deliver project on time. RERA will help both developers and buyers.
When RERA comes into effect, transparency will increase between the builder and buyers in the market. Those who want to invest their money in the real estate whether it’s residential or commercial property, they can now invest without any hesitation or doubt. All the process will become clear to the buyer. Once the Real Estate Regulatory Act is implemented, buyers will not have to worry about the security of their investment and they can easily invest in the market.
RERA will be a good move by the government and buyers will be able to rely on developers more. With the help of the act, buyer will be able to save more money and time as the projects will be completed on time and buyers’ rights will also get increased.
Construction Quality Guarantee
With the new act, buyers will have all the security and assurance that they will get a well-constructed property from their developers. The builder will have to provide support for structural defect for five years which is way more than the current timeline.
Many buyers who do not find a reliable real estate developer face various problems related to project design, delivery and construction quality. But according to the Real Estate Regulatory Act, both the buyers and sellers will now have to follow a system where there is a clause for penalties as well.
However, the new act is really good and many home buyers and builders are supporting it, but it is clearly visible that many problems will still remain the same as there will be need of amendments in RERA. Homebuyers will need to make sure that they choose the right developer and get all the necessary information before they decide on a property.