How RERA Benefits Under-Construction Property Buyers?

Having an own home is the dream of every person in this world. But, in past years, there have not been proper rules in Real estate market, and developers used to set the property prices and its delivery according to their own rules. As a result, developers were reaping more benefits while the homebuyers were spending the fortune to get a home for themselves. But on 26th March 2016, Government introduced RERA, and it ultimately came into effect from 1 May 2017. RERA now regulates the real estate market and protects the interest of home buyers while keeping the transparency in Real estate market. Before we go ahead, let us explain what RERA is.

Having an own home is the dream of every person in this world. But, in past years, there have not been proper rules in Real estate market, and developers used to set the property prices and its delivery according to their own rules. As a result, developers were reaping more benefits while the homebuyers were spending the fortune to get a home for themselves. But on 26th March 2016, Government introduced RERA, and it ultimately came into effect from 1 May 2017. RERA now regulates the real estate market and protects the interest of home buyers while keeping the transparency in Real estate market. Before we go ahead, let us explain what RERA is.

What is RERA?

RERA stands for Real Estate Regulations Act. RERA created certain norms to protect the rights of the common man. According to this act, builders need to submit all their documents like ownership of the property, Licence of the developer, approval of all building plans, clearance from all departments, proper draw agreement, the completion date of the project and papers of property to the government authorities. The builders can put their project on sale only if it meets all the RERA guidelines and has RERA registration number. In case of any fraudulent activity done by the developer/builder, you can legally file a complaint against the developers to the authorities. RERA give Indian Real Estate market its first regulator. It is mandatory for each state to follow RERA rules. This way RERA promotes transparency and efficiency in the real estate sector.

Raghuvir Developers and Builders at Surat, Gujarat - India is now executing all its under-construction projects - which are Raghuvir Spalex, Raghuvir Silverstone and Raghuvir Spectrum - according to RERA guidelines. At the same time, Raghuvir Developers have been providing attractive schemes for easy payments so that homebuyers can peacefully make their investment decisions without worrying about spending a fortune on their dream home. Raghuvir Developers is well-known for it's high quality residential and commercial projects.

How RERA Benefits Under Construction Property Buyers?

rsz_cam07_

Pay Only For Carpet Area

RERA makes sure that the home buyers only pay for carpet area of the under construction building. RERA defines carpet area is the net usable floor area of an apartment. It excludes the area covered by external walls, areas under services shaft and exclusive open terrace area. Earlier the builders used to calculate the carpet area according to their convenience which sometimes included the area of walls, service shafts, etc. Now that the carpet area has been precisely defined, no builder can charge you extra money for the false carpet area measurements other than that are mentioned in the RERA.

Builder Has to Take Full Responsibility for the Money

As per the RERA act, developers need to transfer 70% of the money he received from construction or property business into a single account only. Developers are allowed to use this money just for construction of project or land deal. This results in fewer chances of Builder Bankruptcy. And that's how the builder takes full responsibility for the money he is receiving from you. Thus, your money will only be spent for the construction of property which you have agreed to buy.

Regular Reporting Of The Construction Projects

The builder needs to submit the periodic report of the project to the authorities, and you can check the progress of your project on the RERA website anytime you want. This is how you get the complete transparency of the project you have invested in.

Pre-Registration Of All Projects

All real estate builders and developers need to register all their ongoing and upcoming projects with RERA. They need to disclose project details including project plan, layout, and approval from all related authorities to the government. Builders are not able to do any unauthorised construction under RERA. So, before you invest in any under-construction apartment, you can check its credibility on RERA Website.

Restricted Advance Payment

Builders cannot take more than 10% of the cost of an apartment as an advance for booking. So, you only have to pay 10% or less for booking an under-construction apartment. If a builder charges you more than that, you can file a complaint against them. Rest of the payment you need to pay in instalments as per sale agreement.

More Balanced Agreements

RERA provide more balanced agreements between builders and buyers.  It prescribes a standard agreement between seller and buyer which is equally beneficial for both parties. In the past, promoters made clause according to their own benefits and penalized buyer for any fault while there was no penalty for the builder. But now RERA provides more balanced agreements between two parties.

Full Refund In Case Project Is Not Completed On Time

If the builder is not able to complete the project on time, then the buyer has the option of either withdrawing himself from the project and get his full money back with interest or continuing with the project and get the compensation with interest from the due date of project completion till the project is actually completed.

Structural Defects Coverage

If any structural defect occurs in the building within 5 years after owning the property, the builder has to bear the full responsibility of correcting the defect within 30 days for free. If the builder is not able to do so, then homebuyers can claim compensation from the builder.

If Builders Violate the RERA Terms:

Violation of RERA act is not to be taken lightly. The penalty of around 10% of project cost and imprisonment has been prescribed against the violators of rules. RERA covers all kind of projects including commercial, residential, office and any other buildings. As a result, many developers including Raghuvir Developers have been working on the current projects keeping the customer's rights in mind. You can freely buy under-construction flats (Raghuvir SilverstoneRaghuvir SpectrumRaghuvir Spalex etc) of Raghuvir Developers while availing the lucrative payment options and ultimate luxury.

 

Contact us

Small or big, we've got you covered!

Giving your Home a new Style

Get in Touch

Making your dream home a reality.

Subscribe for our newsletter and never miss out any updates.