RERA Benefits for You as a Homebuyer
Take a look at some of the key ways in which RERA helps homebuyers:
1. Poor construction quality? Let the builder fix it
If you have been worried about the construction quality of projects these days, here’s a relief for you. As per RERA, if any structural defect occurs within 5 years from the date of possession, it will have to be fixed by the developer. The Act also states that such a defect will have to be fixed within 30 days of notice, without any charge.
2. No more project delays due to diversion of funds
Before RERA, most developers were found defaulting on their project deadlines as they diverted the funds to start new projects. But, with RERA, the developers are now required to deposit 70% of the funds received from buyers in a separate account. This money can only be used for that particular project.
3. No more false promises by Builders
Under RERA, builders are now required to show their RERA registration number with their advertisements. They can not advertise anything that will not be delivered to the buyers. Additionally, if a builder wants to make a change to the original plan, they will have to seek the Buyers’ approval first.
4. No project to be sold until all clearances are obtainedAll the builders and agents are now required to register themselves with RERA. It is now mandatory for them to get all necessary clearances before they can promote the project for selling. This ensures protection of buyers from projects that get stuck later on for pending approvals.
5. Quick grievance redressal
If you have a complaint against a builder, promoter, agent, or contractor, you can file it with your respective authority for a quick redressal. RERA mandates builders to resolve these complaints within 120 days of filing. Also, the Act states that non-compliance with the regulations can lead to a penalty of upto 10% of the estimated project cost. Read: RERA Complaint Online Filing
6. Penalty for project delays
With RERA guidelines in place, if a builder delays the project, you can ask for your refund and withdraw from the project. Also, if you don’t want a refund, you will be entitled to an interest every month, starting from the due date.
7. Pay for the carpet area, not built-up area
RERA states that the value of a property is to be calculated on the basis of carpet area, instead of built-up area. Carpet area is the net usable floor area of a property. It excludes the area covered by walls, etc. This makes sure that you don’t have to pay an inflated price for the area that you are not even using.