In the previous article on RERA, we provided information on the basics of RERA and why it was introduced by Indian Government. In this article, you will come to know about the impacts of RERA on Real Estate sector and how it will be governing the way property is sold and brought in India.
RERA has revolutionized the way that property was dealt with in India. Due to the commencement of this act, all the scams in this sector will be put to an end. Below are the key aspects of RERA:
• Assurance of Money Disposal.
As per the guidelines in RERA, builders cannot take more than 10% of the property’s worth as an advance payment before signing the agreement for sale. Around 70% of a buyers’ money will be kept in an escrow account (third-party arrangements) which will then be given to the builders only for the purpose of construction-related costs.
This ensures that the money of the investor is not at stake when buying any property.
• Transparent Buying Process:
Builders have to submitall the original documents for their projects. They should not make any changes in the plan of the property without consulting the investor/buyer.
• Fair undertakings:
To oblige with the rules of RERA, the builders have to sell properties on the basis of Carpet Area.
What is Carpet Area?
Carpet Area is the total area of the floor that can be used within the walls of a property that is sold. It does not include areas like an open terrace or balconies.
If there is a delay in giving the possession of the purchased property, the buyer has a right to ask for the amount invested in that property.
• After sale services:
The builder has to mend the problems that arise in the property sold to the buyer within 30 days of registering the complaint about the same and the buyer can avail this service for 5 years of buying the property.
A unique code is provided to all the projects once they are registered in RERA. A builder cannot advertise their property without getting it registered first. Once the registration is done, all the projects have to be advertised along with the RERA code of respective properties.
So before you deal with any builder or real estate agent, keep in mind the above things before parting way with your money.
If you have any queries, shoot your doubts in comments and we will get back to you. Meanwhile, stay tuned to know more about RERA.