7 benefits of RERA Act

The Real Estate (Regulation and Development) Act (RERA) was established in 2016 with an intent to safeguard the interests of home buyers, developers and agents. Under RERA, each real estate transaction made is accounted for and hence this leads to safe, secure and transparent real estate activity. This guide outlines seven advantages of the RERA Act.

Transparent

All the developers have to provide correct information about their project on the RERA website. These will include project blueprint, timeline, permissions, finances etc. This helps home buyers decide on their investments and people who have already invested know about the project status.

Adhering to advertising rules

According to the RERA Act, projects cannot be advertised without RERA registration number and website clearly displayed in big fonts. Also, a QR code of the project has to be necessarily used on all projects.  All information used as part of RERA advertising and marketing activities cannot carry any false promises or information. If done, the developer will be sent notice by RERA.

Standard RERA carpet area

Developers nationwide can sell properties based on the carpet area that has been standardised by RERA. This is the space that is within walls and can be usable by the homebuyer. This way the homebuyer doesn’t have to pay for unnecessary charges.

Homebuyer consent required for any changes to be made

In between the project, if the developer wants to make any changes to the blueprint, under the RERA Act, he has to get consent for all home buyers before proceeding with the change.

Escrow account

RERA directs the setting up of an escrow account that will have funds parked for development of that single project that is RERA registered. In this way, accountability can be kept and these funds can’t be diverted.  This adds to the security of homebuyers as any misdealing on behalf of the developer such as not following RERA regulations will lead to actions such as freezing of the bank account.

Strict project delivery

Real estate in the past has been known for defaulting on the project delivery dates with many home buyers waiting for more than two to three years than the promised time of possession. After the RERA Act was implemented, the project delivery timeline has to be strictly adhered to. Developers while taking the project booking have to communicate the project delivery date and follow the same. In case of any lapse, developers will be held accountable and would be made to pay heavy compensation to the home buyers. This is a very pro home buyer initiative that the RERA Act ensures.

Grievance redressal

The RERA portal has established a grievance redressal system under which any homebuyer can file an official RERA complaint against the developer, agent. Also, developers can file any complaint against homebuyers. These complaints are heard and disposed off at a very fast pace.