RERA and its Impact in Real Estate Market

RERA. How will RERA benefit you?

RERA (Real Estate Regulation Act) is the new life-saver in town for all buyer who were previously tensed about builders betraying them. Real Estate Regulation Act (RERA) is going to shield buyers from delays, fraudulent claims and false advertisements. Homebuyers may finally be able to forget about inordinate project delays and filthy construction quality.

RERA and its benefits you receive as a home-buyers

Builders can't charge for area outside the walls i.e they can’t charge you on super-buildup-area (SBA)

The buyer will pay only for the carpet area and that it. The builder can't charge for the super built-up area, which is a common practice currently. For instance, where you get 900-1,000 sq. ft. carpet area if you book a 1,300 sq. ft. house (the rest is balconies and common spaces), you pay for the whole 1300 Sqft. in present day scenario.  The new law is expected to stop this practice for good.

Builders responsible for any defect in the house

The builder will have to provide a solution for any structural defect in the building for a total of five years. Basically, RERA also states that any structural defects brought to the notice of a promoter within a period of five years from the date of handing over possession must be rectified by the promoter.

Builders can't use your money to make someone else's house, yes you heard that right. They did siphon off your money for some other project.

The developer will have to transfer 70% money received from home buyers to an escrow account. The builder has to use this amount as per the stages of construction.

Quick redressal of grievances

In accordance to RERA, regulatory bodies and appellate tribunals have to be set up in each and every  state to solve builder-buyer disputes. This has to be done within 120 days.

Consent of 2/3rd allottees about any other addition or alteration.

For any changes to be made by the developer, the developer should have 2/3rd allottees consent. If they fail to get the support, then the design related or any such things can’t be employed by the builder in the particular project.

Now you may think what advantages do buyers have for projects which are already under construction. Firstly, every real estate project (where the total area to be developed exceeds 500 Sq Metres or more than 8 apartments is proposed to be developed in any phase), must be registered with its respective state’s RERA governing council. The existing projects where the occupancy certificate (OC) has not been issued, those are required to comply with the registration requirements under the RERA Act.

Secondly, after the implementation of the Act, home buyers will be able to monitor the progress of the project on the RERA website. This will be possible since promoters will be required to make periodic submissions to the regulator regarding the progress of the project.

A brand-new project is coming up on the Tumkur Road, which will be RERA registered and under all the rules and regulation. Prestige Jindal City Apartments Bangalore is the latest brainchild of Prestige Group, offering 3000+ units in 1, 2, 3 and 4 BHK variants. Get in touch to get a detailed info about the project. It will surely amaze you, best-in-class project in North West Bangalore.