The Real Estate Regulatory Authority (RERA) was formed according to the Real Estate (Regulation and Development) Act, of 2016. RERA seeks to protect home purchasers from unfair builder practices. RERA has advised developers to sell properties on the basis of carpet areas and not super built-up areas. Buyers are also authorised to get back their money when the project has been delayed under the RERA Act.
Property buyers can also choose to be invested and receive monthly investment on their money. RERA then takes action based on the complaint that the buyer filed within 60 days. Builders then need to follow the judgment taken by the authority within 45 days. The builder has to solve all issues that the buyers face within 5 years of purchase in 30 days.
As per RERA, Carpet Area is the actual unusable area of the property and Super Built-up Area is an exclusive built-up area in addition to common areas, like lifts, common corridors, etc.
Here are some other benefits of RERA
Full transparency in dealings
The RERA Act has made it compulsory for all builders to make sure that total transparency is adopted while information is being conveyed to the home buyer.
Delays are not allowed
Builders should complete the projects within the time frame they have promised. Builders who will default on this are required to pay an interest rate of 2% above the lending rate offered by the State Bank of India. Builders can also face a jail term of 3 years for any delays.
Builders are not permitted to use buyer's money for any other project
RERA has instructed developers to compulsorily deposit 70% of the sums received from purchasers into a separate escrow (neutral third party) account. Builders are not permitted to use buyer's money for any other project.
