What is RERA?:
The full form of RERA is the Real Estate Regulatory Authority and it aims toward protecting the home buyers and also boosts the amount of real estate investments. The bill of the Parliament of India Act was passed on the 10th of March 2016 by the Upper House, Rajya Sabha.
RERA also helps buyers gain trust in their builders as their money is not as risk on a RERA approved property. RERA aims at providing transparency and has a structure on how to deal with any untoward issues with the project like, project delays, pricing, quality of materials etc.
Below are few of the benefits of RERA:
- Standardized Carpet Area: Before RERA was introduced, the method by which a builder calculated the price of a project wasn’t defined in any way. However, with RERA there is now a standard formula that is used to calculate carpet area of an apartment. This way, builders cannot provide high carpet areas to increase prices.
- No delay in Projects: Under the RERA act, each real estate developer/ builder needs to give a delivery date for the handover of the possession of the flats. If the builder is not able to complete the project until the delivery date which was promised, then they will have to face defined penalties.
- Right to information: The developer is entitled to share all the details regarding the project such as plan layout, plan of execution, completion stages, the status of competition, etc. This ensures transparency of the project.
- Grievance issues: When and if the buyer/ purchaser, the promoter/ developer, or the agent has any issues with respect to the project, they can file an official complaint with the RERA department. If they aren’t pleased with the RERA’s decision, an official complaint can also be filed with the Appellate Tribunal.
- Advance payment: A builder cannot take more than 10% of the cost of the project from the purchaser as advance or booking fees. This saves the buyer from having to source funds fast and having to pay a large amount all at once.
Real estate investment in Hyderabad has seen a rise after the introduction of the RERA act. Many new properties in Hyderabad are now being built which are all RERA registered.