The dream of owning a home is turning true for many home buyers mainly due to two reasons. Firstly, the launch of PMAY [Pradhan Mantri Aawas Yojna] Scheme is a big relief for the aspiring homeowners who fall under different categories according to their financial status. Secondly, the framing of RERA Act that is Real Estate Regulatory Authority came into work on 01st May 2017. This law for the real estate sector gave a boost to the confidence of every prospect to step into the property market as his/her money and the property is going to be safe as the person can file a complaint against the wrongdoings of developer/builder.
31st July 2017 was the last date for registration of housing projects under the RERA Act across the country. The elements of this law is same nationwide but the status, registration and other work details related to each project is listed on the state RERA portal. For example, the projects for both commercial and residential properties in the State of Uttar Pradesh is carried out on up-rera.in/.
The Narendra Modi-led Central Government laid the guidelines for protecting the rights of home buyers across the country. Hence, you must also know the benefits of buying a home under the RERA registered projects.
Advantages of Buying Property in RERA-registered Projects:
- Firstly, the developer/builder has to handover the possession of your home at the promised time. Also, it is mandatory for all developer/builder to disclose particulars about each housing unit such as the carpet area, Floor Area Ratio and a number of housing units to the home buyers.
- Secondly, the developer/builder is required to keep the 70 percent of your paid money into an escrow account. Keeping this amount into a separate account means that the amount you paid for the construction of your dream home cannot be used for any other project or projects.
- Thirdly, the homebuyers can relax as they are now eligible to pay only for the carpet area and the developer/builder cannot ask you to pay for the super built-up area as earlier.
- Fourthly, the developer/builder requires clearances from all Governmental departments such as Sewage and Sanitation, etc.
- Fifthly, the developer/builder has to take consent from the buyers to make changes in the site plan. This consent can’t be granted via verbal communication and hence a written consent from the home buyer to make changes in the Siteplan can help the developer/builder. Another important thing to consider is that the developer/builder has to deliver the units with all amenities which he/she promised to the home buyer at the time of booking.
- Sixthly, the developer/ builder is solely responsible for any structural defect in the living unit up to 5 years from the time of possession.
- Seventhly, the developer/builder is liable to pay the interest to the prospect in case of delay in the completion of a project. This interest is let suppose as the EMI that is paid by the prospect to the bank.
- Lastly, the RERA Act protects the rights of the homebuyers while asking the developer/builder for the maintenance of the property. The owner has the right to file a written complaint with the developer/builder within a year of taking possession to avail after-sales services.
The law framed by the Central Government empowers home buyers with security and the right to speak against the wrongdoings of the developer/builder at any given time. Also, the grievance redressal against developer/builder is easy to file in accordance with the State RERA website. Apart from this, the RERA portal consists of all details related to the residential and commercial projects such as the project, number of units, floors, how many are sold or unsold every three months.
The home buyers are eligible to file a complaint with the RERA for projects that are not registered under the RERA Act. But, we suggest you buy property under the RERA registered projects as it is a better option as they offer more transparency and assure the timely possession of your home.