RERA or Real Estate Regulations Act was introduced in 2016 in India to protect the interests of home buyers. Under the RERA Act, a Real Estate Authority and Appellate Tribunal has been created for each state. In case of any wrongdoing by the builder/developer, home buyers can file a complaint to this authority.
Why RERA is important in India
The main aim of RERA is to provide relief to the buyers from malpractices by builders. RERA specifies certain rules for building and developing real estate that brings more transparency to transactions in the real estate sector. It safeguards the interests of home buyers and has also specified certain rules and regulations to be followed by all builders/ developers.
Benefits of investing in RERA-approved projects in Mumbai
Standardized carpet area
Under RERA, the carpet area on the property has been standardized which all builders and developers have to follow. Every builder/developer has to follow the method of calculation of carpet area as defined by RERA.
Rate of interest on delay in completion of the project
In case of default in payment by the buyer or any default in completion of the project by the developer, the rate of interest to be paid shall be the same for both parties. In case the developer is unable to complete a project on time, the buyer has a right to get a full refund along with interest payable.
Deals with Builder Insolvency
Developers usually have multiple under-construction properties. Under RERA builders can’t divert funds from one property to another property. The builder has to deposit 70 per cent of the amount realised in the project in a separate bank account.
Advance payment
Under RERA guidelines the builder cannot take more than 10 percent of the cost of the apartment, villa, etc. as an advance payment before the agreement of sale.
Protects rights of buyers
RERA protects the rights of the buyers in case of any structural defect or any defect in workmanship, quality, provision or service discovered within 5 years of possession, then the developer has to rectify it at no extra cost within 30 days. The buyer can also claim compensation from the developer in case the defect is not rectified.
It is best to invest in RERA approved projects in Mumbai like Geetanjali Solitaire, Satyam Regents Park, and Platinum Experio. Investing in these projects will be a good investment decision with the interest of the buyers safeguarded.
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