Hidden facts about Real Estate (Regulation and Development) Act – RERA

The Real Estate (Regulation and Development) Act is fully implemented. The major implications of RERA are summarized below, for the understanding of a person who is not part of the real-estate sector.

Any project up to 500 square meters, and more than 8 units (flats / apartments / personal properties) that are under construction, will have to be registered under RERA.

This means that most, if not all, of the ongoing projects will be officially looked into under RERA.

Every project detail has to be registered. This includes project layout, planning, government approval, land title status, subcontractor of the project and completion schedule with RERA. It has to be presented to the consumer. Each phase of a project will be considered a stand-alone project and will require related permission.

In this way, RERA will be updated with all real estate activity which will help increase transparency and streamline the sector.

Under Section 9 of the Act, all agents and brokers have to register with RERA within three months of the implementation of the Act.

As a result, house buyers will only deal with agents and brokers who are qualified, verified and authorized.

The sale of any project will be on the basis of its original carpet area and not on the super built-up area.

Buyers will get a clear understanding and will be able to make an informed decision when purchasing a property.

Once a particular project is registered and sold, no further changes can be made without the buyer's consent.

This will eliminate the cost of fluctuations after the sale is completed. In addition, it will ensure that projects are delivered on time.

The developers will be liable to pay interest on the amount paid by the buyer if the project takes longer to complete than promised.

This law will ensure that projects are completed and delivered without any delay.

Separate accounts have to be maintained for different projects of the same developer. 70% of the client's money will be used to build related projects.

This will help in regulating the transaction. The customer's money will be used fairly and appropriately for the development of their homes. It will also assist in timely delivery of projects.

In case of any damage, the customer can contact the developer in writing within 5 years of being taken possession.

This will ensure the safety of the customer even after they are assigned to the project.

Under this Act, the Real Estate Appellate Tribunal is constituted. These tribunals will decide on disputes between buyers and developers within a time limit of 60 days.

This will speed up the resolution process.

For the developer who fails to follow the law, the maximum is 3 years without jail / fine.

Therefore, the law will have to be strictly followed for everyone in the industry, making it customer-friendly.

BUY/RENT/SELL property online is safe?

The Internet has become a basic necessity of everyone's life, the trend of buying property online for the last few years. Today, there are number of portals where one can advertise, buy, sell or rent a property. Major real estate developers are taking steps to strengthen their online presence where shoppers can check prices and designs. In the current scenario where many reputed real estate businesses are trying to rent or sell their properties online, and with great offers. In that case the buyer gets a lot of benefits.

Advantages of buying / renting / selling property online:-

Booking amount is cheap: In offline scenario the booking amount is at least 5% of the value of the property and if you buy the property online then advance booking payment is very nominal 10,000 to 20,000 which is less than offline booking amount. Book a property online. If the buyer is sure to buy the property 100% then he will lose the booking amount.

Convenient for the buyer: Buying property online has become easy and convenient where the buyer can make a booking from the comfort of their home. Contacting several agents to obtain information about the property, which is tedious work, is also terminated.

Choosing a property online has the option of taking a visual tour: Many property portals or websites offer a visual tour to the potential buyer where you can actually see every nook and corner of the property / house. They also provide 24-hour customer service support for property or booking related questions. This helps in saving the customer's money, time and effort. Otherwise he would have to visit the property individually for each short query.

Research: The buyer can compare properties online, checking the correct property rates using a website or portal tool. The buyer can also read the project description and locality details, reviewing the builder which will help them finalize the property and make decisions.

Risk in buying / renting / selling property online:-

Some property developers provide fake information and pictures about the property and simply submit it to the online portal to drive traffic and silly people.

In that case verified property builders come into play. Make sure that you do the proper research and invest or buy property that is verified and certified.