What is RERA? How Rera Benefits Homebuyers?

When buying homes, you might be apprehensive about getting the right property, trustworthy builders, and timely delivery of your home. Earlier, you did not have much recourse and had to either engage in long-drawn legal battles or follow the timelines of the builder. Further, the builder’s authenticity and complete information about the project wasn’t easily available. But all these changed after the government introduced the Real Estate Regulations Act, popularly known as the RERA Act. This blog tells you what RERA in real estate is and how it benefits you.

What is RERA?

The Real Estate Regulation Act was passed by the government in 2016 to ensure transparency and accountability in real estate transactions and protect the interests of homebuyers. It played a vital role in increasing transparency and ensuring that you have adequate information about both the property and the builder before proceeding with the transaction.

How does RERA benefit Homebuyers?

One of the main motives for enacting the RERA Act was to remove uncertainty and protect your interests. Here’s how it achieved its goal:

1. Increased Transparency: This is one of the most crucial RERA benefits. It has enhanced transparency by making it mandatory for developers and builders to provide accurate, timely and complete information about the project. You can check this information by visiting the state’s RERA portal.
2. Standardisation of Carpet Area: The RERA Act has standardised the measurement of carpet area for real estate developers across India. It is the area available within the walls that is available for use.
3. Timely Delivery of Projects: Gone are the days of long delays in delivering the project. The RERA Act has enforced strict regulations to ensure the timely delivery of projects for developers. This ensures that buyers are not left in the lurch. In case there is a delay in the delivery of the project, the builder or developer should compensate the buyers.
4. Escrow Account: The RERA Act requires builders to put a certain percentage of funds for property development in the escrow account. This ensures that the funds are utilized for the development of the property. It also adds security to the buyers in case there is a delay in the completion of the project.
5. Eliminating False Advertising: RERA regulations have eliminated false advertisements and misleading information relating to the project or builders. All the information relating to the project should be accurate and shared on the RERA portal to prevent buyers from being misled by misleading advertisements.
6. Grievance Redressal: The RERA Act has established a grievance redressal mechanism to address the issues of homebuyers. You can file an official complaint against the builder in case it deviates from its commitments. It has established the adjudicating authorities, officers and appellate tribunals that ensure the protection of your rights.
7. Liability for Structural Defect: Builders and developers remain accountable even after handing over the possession of the property. They remain accountable for any structural defect in the property for a certain period after completion. This ensures builders deliver quality projects to buyers.
8. Consent for Changes: In case the builder decides to alter or make modifications to the plan, it needs to obtain the consent of homebuyers before making such changes. This ensures that you are aware of any changes and are comfortable with them.
9. Right to Information: RERA empowers you to know every crucial detail about the project you invest in. It has significantly reduced the dissatisfaction and cheating with real estate buyers alongside timely and quality deliverables. You can also check the flats booked.

In a Nutshell

The RERA Act was enacted to protect your interests. Increasing transparency by requiring builders to disclose all the details about them and the projects has ensured that you have all the information before investing in the project.

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