Indian real estate has always been considered as the unorganized because of the visible delays and the poor construction of the projects. Fortunately, with the establishment of RERA (real estate regulatory act) which was enforced from May 1, 2007.
This act has proved to be a friendly scheme for the buyers and also promotes the efficiency, transparency in the deals while being financially disciplined. Various ways by which RERA has contributed towards the development of the Indian real estate and also screwing the corrupted builders and acting as an umbrella for the buyers who will be investing in the upcoming projects in Gurgaon are as follows:
Delivery on time: If the builder does not complete the project on time and give the possession to the buyer, he can seek compensation in two conditions -
• If the buyer wishes to withdraw: the buyers have the advantage to ask for the entire amount deposited by them along with interest from the builder.
• If the buyer wishes to continue with the project and wait till possession: in this case,
the builder will have to pay the interest till the buyer gets the possession.
Registration: It is now mandatory for all the builders to get their projects registered with RERA; obtain a registration number for their respective project. All the necessary details like progress, commencement, certificates, details of sales etc. must be updated at regular intervals. This provision makes it an affordable housing scheme for the buyers.
Financial safety: An escrow account is made for the safety of funds of the buyers that are taken by the builders before the time of possession. The buyers have to deposit 70% in the account which prevents the builders to misuse these funds for other projects.
Verification of the builder: Ensuring that the builder is reputed and has a good record who has financial stability, the buyers have the advantage to check the profile of the buyers and get it verified.
Notification of basis of payment: Firstly for the knowledge of the buyers the booking amount should not exceed 10% of the property cost. Various benefits that RERA has to offer for the payment are down -payment, construction- linked plans, and possession- linked plans and flexible-payment.
Transparent records: Beginning with the transparency in media, the developers can only promote his project if he is registered with the RERA, only then he will be published elsewhere. Also if the buyer finds any defects in the property within the first 30 days of possession the builders are to clear the defect or pay the compensation.
Transparency in redressal management: RERA provides the advantage of strong redressal management under which the consumer can file a complaint on developers/brokers in case of any obligation. This obligation has to be resolved mandatorily within 60 days by the developer.
Sidelining the soft/ pre-launches: Prohibiting the soft launches (interpretation of selling something that doesn’t exist) as a result these speculators have been removed from the list which maintains a friendly relation with the buyer.
Today RERA has emerged out to be the most trusted act for the buyers and it prevents the unscrupulous real estate builders. This is turning out to be a boon for the buyers as RERA ensures the protection of their hard-earned money.
This act has proved to be a friendly scheme for the buyers and also promotes the efficiency, transparency in the deals while being financially disciplined. Various ways by which RERA has contributed towards the development of the Indian real estate and also screwing the corrupted builders and acting as an umbrella for the buyers who will be investing in the upcoming projects in Gurgaon are as follows:
Delivery on time: If the builder does not complete the project on time and give the possession to the buyer, he can seek compensation in two conditions -
• If the buyer wishes to withdraw: the buyers have the advantage to ask for the entire amount deposited by them along with interest from the builder.
• If the buyer wishes to continue with the project and wait till possession: in this case,
the builder will have to pay the interest till the buyer gets the possession.
Registration: It is now mandatory for all the builders to get their projects registered with RERA; obtain a registration number for their respective project. All the necessary details like progress, commencement, certificates, details of sales etc. must be updated at regular intervals. This provision makes it an affordable housing scheme for the buyers.
Financial safety: An escrow account is made for the safety of funds of the buyers that are taken by the builders before the time of possession. The buyers have to deposit 70% in the account which prevents the builders to misuse these funds for other projects.
Verification of the builder: Ensuring that the builder is reputed and has a good record who has financial stability, the buyers have the advantage to check the profile of the buyers and get it verified.
Notification of basis of payment: Firstly for the knowledge of the buyers the booking amount should not exceed 10% of the property cost. Various benefits that RERA has to offer for the payment are down -payment, construction- linked plans, and possession- linked plans and flexible-payment.
Transparent records: Beginning with the transparency in media, the developers can only promote his project if he is registered with the RERA, only then he will be published elsewhere. Also if the buyer finds any defects in the property within the first 30 days of possession the builders are to clear the defect or pay the compensation.
Transparency in redressal management: RERA provides the advantage of strong redressal management under which the consumer can file a complaint on developers/brokers in case of any obligation. This obligation has to be resolved mandatorily within 60 days by the developer.
Sidelining the soft/ pre-launches: Prohibiting the soft launches (interpretation of selling something that doesn’t exist) as a result these speculators have been removed from the list which maintains a friendly relation with the buyer.
Today RERA has emerged out to be the most trusted act for the buyers and it prevents the unscrupulous real estate builders. This is turning out to be a boon for the buyers as RERA ensures the protection of their hard-earned money.
