RERA Act 2016
is an Act of the Parliament of India. It seeks to guard home-buyers as well as
help boost investment in the real estate industry. RERA Act came into force on
1st May 2016. The Central Government and State Government are accountable to
notify the rules under the act. Under the provisions of the Act, all commercial
and residential Real Estate projects, where the land is 500 square meters or
has more than eight apartments, are obligated to register under the RERA Act,
before launching the new project. On successful registration, you’ll be
provided with a registration number, a login id, and a password. All top developers in India
have to fill up essential details on the RERA website.
5 Benefits of
RERA ACT for property Buyers
Right to
information about the property-
The right to
information is the right of every citizen. In India, buyers have complete right
to information. It is one of the main advantages of the RERA Act for a home buyer.
This can help a buyer in multiple ways. Under this law, a developer is obliged
to share all the information about the project. A buyer can obtain information
related to sanctioned plans, layout plans, along with the completion status.
Developers usually give only half the information. But there are a few
developers who prefer being transparent to their customers. One amongst them is
the M3M Group. They are one of the top developers in India.
M3M Group has a wide portfolio and stands out as one of the best among its
satisfied customers in Delhi.
Standardized
Carpet Rate-
RERA Act has
made it mandatory for developers to disclose the carpet area of the units that
they wish to sell. Previously each builder had his way of calculating the
carpet area. But the RERA Act has a uniform method to calculate the carpet
area. In RERA Act, the carpet area is defined as the net utilizable floor area of
an apartment. The area is usually calculated in three different ways- carpet
area, built-up and super built-up area. Hence while buying a property this can
lead to a lot of misunderstanding on what you pay for and what you receive. But
now with this act, it is the duty of the developer, to make buyers aware of the
net usable area and quoted price based on the carpet area and not super
built-up area.
What does
carpet area cover?
Carpet area
is a space where one can spread a carpet. Built-up area includes this area,
plus the extra space approved by the authorities, such as the area of the inner
and outer walls, balcony, etc. All the altered definitions are supposed to be
practiced and executed by the real estate company so that there’s clarity and
it benefits the end-users
Authority for
Grievance Redressed-
In this case,
if the buyer is not pleased with the construction or if he is facing any other
complications regarding his commercial or residential property, then he can
address it. This helps in maintaining transparency between the buyer and the
seller and helps ethically solve the issue. Generally, this does not happen
when the developer is reputed because he needs to maintain his brand image.
Advance
Payment-
As per
the RERA Act,
builders cannot take more than 10% of the total amount payable from the buyer as
an advance application fee before starting the project.
This is
beneficial for a buyer as this rule allows a definite period for construction
and the buyer does not have to pay a large amount.
Flexibility-
RERA Act has made the
deciding on the date of delivery of the project flexible for developers, which
they can ascertain according to their convenience. So if a developer feels that
it’s going to take more time in developing the area, then the developer has the
liberty to choose the date of delivery. This rule brings clarity to both,
sellers and buyers. Buyers get to know the date of completion and accordingly,
they can manage other things.
So go through
these points before investing in a property, Get to know about the developer
and the quality of their work and then decide what, when, how to buy your dream
home. For more details please log on to http://www.m3mindia.com
