How RERA Has Been Saving You And Your Investment

RERA

9 Points You Can Benefit From RERA

How RERA Has Been Saving You And Your Investment

RERA or Real Estate Regulation Act was introduced in the year 2016 to protect the interest of homebuyers. Its an act which has been made to take the doubts out of the home buyers so that they can invest their hard earned money in the home of their dream. All these years real estate seemed to be the most bleakest investment options for investors and end buyers since there have been so much uncertainty and frauds associated with it.

There were confusion regarding the carpet area, rate of interest, possession, delivery date of property etc. Government has tried to sort this by regulating the laws and streamlining many things by introducing RERA Act 2016. RERA specifies the creation of real estate authority and Appellate Tribunal where buyers can complain in case there is a wrongdoing by the developer.

Let’s have a detailed look at the 9 points of benefit which one can avail form RERA Act 2016.

1.Risk Of Insolvency/ Bankruptcy Solved

Earlier builders used to raise funds from one project and invest in the other projects in case he has multiple projects running. But RERA made it compulsory that 70% of the amount realized from the project should be deposited in a separate bank account. This can be taken out only after the completion of the project certified by chartered accountant, civil engineer and architect in practise.

This protects the buyers by preventing the builder to use the fund collected elsewhere and become bankrupt. The builders can only use it towards construction of the project for which the money was raised.

2. Right Of The Buyer - In Case False Promise Has Been Made

If promises made to the buyer has not been regarded and commitments have not been kept then the buyer has a right to withdraw from the project and he will get full refund of the amount paid as advance along with interest as compensation.

3. Advance Payment Amount

Before entering into an agreement for sale the builder cannot take more than 10% of the cost of the apartment as advance. So the buyer is safe as he cannot be forced to invest a lot of money in an under construction property.

4. Right Of Buyer In Case There Is Defect After Possession

Within 5 years of possession if there are any defect in quality, workmanship or service, such defects will be rectified by builders at absolutely no cost within 30 days. In case the builder fails to do this, the buyer is entitled to compensation.

5 Delay In Possession

In case there is delay in completion of the projects the buyer is given 2 options under RERA:

1. He can withdraw from the project and claim full refund along with interest. The interest will be payable from the due date of completion till the amount is refunded.
2. He can continue with the project  till completion and will also get a compensation along with interest from the date of promised completion of the project till it is actually complete.
3. If date of completion should be 1/1/2019 - The customer decides to withdraw on 1/2/2019. He will get full refund plus a compensation equal to interest from 1/1/2019 till the day full payment is made.
4. If date of completion should be 1/1/2019 - The customer decides to continue, then he will be entitled interest payable from due date of completion till the actual compensation for each month.

6. Defect In Title

If at anytime after possession the buyer finds a defect in the title then he can claim compensation from the  builder. There is no limitation of time as to when the buyer will discover the defect, it can be anytime.

7. Grievance Redressal

In case the buyer has any grievance against the builder, he can take it to the state authority set up by RERA.They have the power to address the grievance of the buyer. If the buyer is dissatisfied with the order then he can further take it to the Appellate Tribunal who will address the grievance within 60 days. The builder has to deposit 30% of the penalty( interest plus compensation) decided by the Tribunal, in case if he want to appeal to the Appellate Tribunal against the order of the authority.

8.Defination Of Carpet Area

Builders  charge on the basis of carpet area. Before the RERA act there was no standardisation in calculating carpet area. The builders used to inflate carpet area which in turn used to hike up the prices. Now RERA has standardised the measurement of carpet area, so the developers cannot manipulate the prices. Reputed builders like Godrej, M3M, Emaar, AIPL, IREO have always maintained standard even before RERA came into picture, so they have always kept the clients in a safe position.

9  Rate Of Interest In Case Of Default

Before RERA the builder was in an advantageous position relating to the rate of interest. The buyer paid much higher rate of interest than the builder in case of default. This was highlighted in many court cases as well. After RERA came into effect it states that the rate of interest chargeable from the allottee by the promoter in case of default will be equal to the interest payable by the builder to the allottee.

Myshopdeal being an official channel partner of A category builders is proud to announce that they have always followed ethics. Due to which existing and old customer keep coming back. Myshopdeal is RERA certified and are dedicated to serving their clients in an ethical way, so that they do not face any issues.