The Real Estate Regulatory Act (RERA) has definitely brought a positive vibe among the home buyers. The act is passed to ensure that the customer is the king & developers are brought to books. RERA aims to make a fair & ethical mode of transactions between the buyers & sellers of real estate. The act has made it compulsory for each state to form its regulator & also frame rules for the regulator to function.
RERA seeks to protect the interests of the buyers which in turn will boost the investment in the real-estate sector. RERA along with demonetization and the implementation of the GST will ensure that buyers dominate the market and not the money-hungry investors.
Below are the highlights of RERA that has made it the revolutionary move in the real estate sector:
- RERA has made it compulsory to register for all the real estate projects where the land is over 500 sq. meters or 8 apartments before launching. This provides transparency in project execution & marketing
- The developer of the project must submit the important information to RERA like Subcontractors, Project Plan & Layout, All Government Approvals, Project Schedule for completion etc.
- Delayed delivery has become a major issue, and the diversion of funds is seen to be the main reason for this. To overcome this RERA has made it compulsory for the builders to park 70% of the Customer’s fund collected for the project in the RERA bank account. The withdrawals of the money from the account will be according to the work completed after the certification of the assigned engineer, charter accountant & the architect & will be audited every three months.
- The builder has to mention the RERA registration number in every communication, may it be the social media, website, hoardings, print ads etc.
- RERA has made it mandatory for the builders to mention the carpet area in each & every communication. The break up of Price has to be mentioned clearly in agreement.
- If the delivery is delayed the customer will be entitled for a compensation that will be equal to the interest that he/she is paying.
- Once the property is sold to the buyer, the builder will not be able to make any changes in the plan without buyers’ permission.
- Buyer can approach RERA for redressal of grievances against the developer. If the builder is found violating the order of the tribunal, he will be imprisoned for three years.
- Buyers will get a warranty of 5 years on their purchase. In case of deficiency in the project, buyers can demand after-sales service.
With all the above positive reforms in the picture, the formation of RERA has safeguarded your real-estate decision & your buying decision is also cushioned. In the coming time, a boost in sales and demand in the real estate sector will occur. Meanwhile, if you planning to buy 2, 3 BHK flats in Jaipur, have a look at Shubh Nikunj. Shubh Nikunj provides perfect living spaces with all the luxury you desired that includes prime landscape, indulgent facilities, immersive apartments, and amicable neighbors.