A RERA stands for a Real Estate Regulatory Authority. The Parliament of India Act was passed by the Rajya Sabha on 10 March 2016. The act took effect on 1st May 2016. Out of 92 sections, only 59 were notified, and the rest became effective on May 1, 2017.
The main objective of RERA is to improve the fairness and equity of transactions between sellers and buyers, particularly in the primary market. Furthermore, the purpose of enacting this act was to protect homebuyers as well as grow the real estate market.
What is RERA-approved meaning?
RERA approval simply means RERA registration. In order to register a project, builders must follow certain guidelines, such as approvals, land titles, insurance, etc.
As part of the RERA, the following major features are focused on:
- A quality product
The RERA was built upon these key features.
Benefits of RERA
- Carpet area standardization
A standard formula for calculating carpet area is provided by RERA. As a result, promoters will not be able to charge high prices for carpet areas that are inflated.
- Taking steps to reduce the risk of insolvency for builders
As a result of the implementation of RERA, promoters will be able to invest the amount generated from one project in the other. In order to withdraw the funds raised, a professional certification must be obtained as 70% of the funds must be deposited in separate bank accounts.
- Advance payment is required
An advance application fee cannot exceed 10% of the cost of the project under the RERA act. In this way, buyers do not have to pay the entire amount at once.
- Buyer’s rights in case of defects
A buyer also has certain rights under the RERA Act. Any structural defect within 5 years of possession must be rectified free of charge by the builder within 30 days.
- Compensation claim right
During possession, the buyer can claim compensation from the promoter in case of a defect in the property’s title. In this case, there is no limit to the amount.
- Information rights
Buyers have a right to receive complete information about the property or project the promoter is working on.
- Redress rights
Any of the three parties, the agent, promoter, or buyer, can file a complaint with RERA if they are dissatisfied with the property. A complaint can be filed with an Appellate Tribunal if the applicant isn’t satisfied with RERA’s decision.
- In the event of a default, interest must be paid
In case of any delay by the promoter of the property, both parties are liable to pay the same interest. A buyer’s interest was less than the promoter’s interest before RERA.
What is the process for ensuring that a property is registered under RERA?
Whenever you buy a home, make sure it is RERA registered. The property must be registered under the RERA Act before being launched or advertised if it covers more than 500 square meters. Builders must provide evidence that 70% of the total payment has been deposited into a discrete escrow account, which shouldn’t be used for other investment purposes.
Before advertising, builders should obtain the necessary consent. Early booking and pre-booking discounts will not be available. The RERA project can be understood in detail as follows:
- For more information, please visit the official RERA website (State-wise)
- Identify the project by clicking on registered projects and entering the name
- After that, you will be able to view project details, the application, as well as the certificate.
How to find RERA-approved projects?
The RERA Website contains detailed information about the approvals. You can view details of a project by clicking the ‘view details’ link. You can find all the required documents under the uploaded documents section.
Ensure the project is registered under RERA and has the required approvals.
Consider the benefits of the RERA act if you’re buying a home. Buying a property can give you certain advantages due to the RERA Act. There is information about how you can verify whether the property is RERA approved or not. Additionally, by following the steps provided above, you can determine whether the property is RERA compliant.