“Home is not a Place, it’s a Feeling!”
If you’re a first-time home buyer and new to the real estate sector, you must be wondering why everyone keeps on bragging about the term “RERA Approved” or “RERA Registered”. Is it really that important to look out for RERA Approval? Does it really make a big difference?
We at Aspire Proptech value your dreams and believe that all home buyers must make a well-informed decision whenever they seek out to accomplish their dream of owning a home!
In this article, we will provide you the necessary information you need regarding RERA by answering all the questions you might have in your mind which will help you in your dream home purchase.
What is RERA?
RERA stands for Real Estate Regulations Act which is an act of the Parliament of India introduced in the year 2016. The act aims at empowering the home buyers by bringing transparency in the system and also to boost investments in the real estate sector. The act establishes Real Estate Regulations Authority in each state to monitor the real estate sector and to speed up the grievance resolution.
When was the Bill Proposed?
The RERA bill was drafted in the year 2013 and was passed by the Rajya Sabha on 10th March 2016 and by the Lok Sabha on 15th March 2016. It received the Presidential nod on March 25th 2016 and came into force on 1st May 2016 with 69 of 92 sections notified.
Is RERA applicable to the whole of India?
Yes, RERA applies to the whole of India except for the state of Jammu & Kashmir.
Does RERA cover only residential projects or commercial projects as well?
Initially, RERA was implemented over residential projects only, however, with the need to make commercial projects transparent as well, various amendments were made to the act and now it covers commercial projects as well including shops, offices, and buildings.
Why RERA was introduced? Was it really required?
The Real Estate Sector in India prior to RERA was very unorganized and there were a lot of failures in terms of transparency of payments made in the sector.
There was a situation of distrust between the buyers and sellers prior to RERA as the promises were not delivered on time and also the appeal went on in the civil courts for years with no judgment being passed. Hence, it was a much-required move by the government to deal with all such issues.
RERA aims at achieving the following objectives:
- To establish the Real Estate Regulatory Authority (RERA) in all states
- To promote transparency and efficiency in the sale of real estate projects
- To protect the interest of consumers in the real estate sector
- To establish an adjudging mechanism for speedy dispute settlement
- To set up an Appellate Tribunal to hear appeals from the decisions, directions or orders of the RERA
How RERA ensures transparency?
RERA brings in transparency in the entire real estate sector as only the registered projects are given a RERA certificate which clearly specifies the date of commencement and date of completion of the project. If builders fail to deliver the project on time, there are huge penalties on them.
RERA has cleared out all those fraudulent builders from the market who used to commit fake promises to aspiring home-buyers. Also, RERA tracks all the payments which are made by buyers to the builders so that there is no scope left for corruption or Benami Transactions.
All these factors help in ensuring that the entire real estate sector is much more transparent and buyer-centric.
How RERA exactly empower the buyers and how does it secure their interest?
RERA secures the interest of home-buyers and empowers them in the following ways:
Ø As per the RERA rules, the consumer is entitled to receive information about the sanctioned plan, approved layout plan, stage wise progress of the project, carpet area, and facilitation of basic amenities & services such as drinking water, electricity, sanitation etc.
Ø The consumers can claim possession of the unit and the association of consumers can collectively claim possession of the common areas as declared by the real estate developer.
Ø In case the real estate developer fails to meet the timeline or does not deliver what was promised then the consumer has the right to claim a refund of the amount paid with prescribed interest and compensation for the same.
Can I check if the builder is having a legitimate RERA approval?
Yes, you can ask the builder to show the RERA Certificate or you can yourself visit your state’s RERA public portal and search for approved projects. There you can see if the project is RERA approved or not. Also, you can download the RERA Certificate free of cost for your reference.
We hope all these answers have made you much clearer about RERA and you’re well aware of the importance of RERA Approved projects. In the search for your dream home, do not neglect this aspect.
Aspire Proptech is an end-to-end assistance real estate company and we are constantly committed toward ensuring that home buyers get their dream home they’ve been looking out for. If you have any further queries regarding RERA or anything else in the realty domain, feel free to reach out to us. Our team would love to interact with you!