What’s RERA and what all one should be knowing before we invest in any builder / developer properties.
The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted in India to bring transparency, accountability, and standardization to the real estate sector. Since RERA came into existence, the real estate industry is streamlined and its sailing smoothly. In this blog we are suggesting you all the points that you need to take care before investing on any property of the builder/developer.
- Check RERA Registration:
- Make sure that the project is registered with the respective state’s RERA authority.
- Visit the official RERA website of your state to verify project details like approval status, completion timelines, and builder credibility.
- Read the Project Details:
- You must review all the documents uploaded on the RERA portal, such as sanctioned plans, layout approvals, and completion timelines.
- Do verify the legal title of the property and ensure the builder has the right to sell the property.
- Transparent Payment Structure:
- The developers/builders can demand only 10% of the cost as an advance or booking amount before signing the sale agreement.
- The payments must align with construction progress as specified by RERA.
- Adherence to Deadlines:
- Check the possession date promised by the developer and the penalties they are liable to pay for delays.
- Avoid Unapproved Projects:
- RERA prohibits advertising, selling, or promoting projects without proper registration. Totally avoid projects that are not RERA-compliant. If a builder /developer is promising you and showing you the acknowledgement of the documents submitted with RERA, still you should not invest in that property. Let the final approval come.
- Understand Refund and Compensation Rules:
- If the builder fails to complete the project or delivers a substandard property, buyers are entitled to a full refund with interest and compensation under RERA guidelines.
- Know Your Rights:
- You can file complaints with the state RERA authority if the developer violates rules or delays the project.
NOTE :
· Hire Legal Help: Whether buying or selling, consult a legal expert to review agreements and documents to ensure compliance with RERA and other laws.
· Stay Informed: Check the RERA portal of your state for updated rules and regulations, as they may vary across states.
· Beware of False Promises: Ensure that all agreements and promises made by the developer are documented in the sale agreement.