The Real Estate Regulatory Authority (RERA) came into effect on 10 March 2016. The central government passed the RERA Act to address the lack of clarity that plagues the real estate market. It is enforced in each state and union territory in India, to regulate the real estate sector. By the Real Estate (Regulation and Development) Act, authorities can now protect the interest of homebuyers. They can solve grievances and standardize the sale agreement in the country.
Benefits of RERA to Homebuyers:
- Right to Get Detailed Update of Project: With the introduction of RERA, the developer must provide detailed information to home buyers. He has to report the progress of the project, in detail, at every stage. The act protects the interest of home loan borrowers.
- Periodic Reporting: The RERA makes it necessary for the developer to submit periodic reports to the regulator about the progress made on the project.
- Protection from Structural Modifications: The homebuyer gains protection from major changes and modifications on his property without his consent. Get the documents required for home loans registered under the RERA Act. If the developer deviates from the construction plan, a case can be filed against him. According to the RERA, the developer has to get consent from at least two-thirds of the homebuyers before making ore making changes.
- Accountability and Transparency: The developer has become accountable for his work strategy. He has to keep about 70% of the funds into a single account. He is accountable to the homebuyer on the money invested. As all accounting statements are transparent, he is easily liable for his activities.
- Misuse of Funds: Real estate developers misused the funds of property buyers by directing the funds to other projects. But after the RERA came into effect, the developers are responsible for regulatory authorities, and homeowners get the right to question them for any change in property plans. If the buyer is not able to avail of tax benefits on home loans due to project delays, he can lodge a complaint. According to the RERA Act, the developer is liable to pay for this amount, as he is responsible for the delay.
- RERA comes under the Real Estate Regulatory Authority: The Regulatory authorities of real estate have the power to question developers of every state and union territory in India. The real estate developers are answerable to homebuyers.
- Benefits Real Estate Sector: The real estate sector has gained more investor confidence as the rate of accountability has improved, and transparency is provided to homebuyers.
Tips to Homebuyers
● As the RERA protects homebuyers, they can identify the right housing finance for their home loans. Keep the documents required for home loans ready to register under RERA to stay protected.
● You can question every phase of the housing project, its development, and its promotion.
● If the developer does not abide by the timeline or give false details, as a homebuyer, you can lodge a complaint against the developer.
RERA gives you a right to know and take action.