RERA, Real Estate (Regulation and Development) Act 2016, was passed by the parliament of India to bring about transparency and fair trade practices in the real estate industry. It seeks to protect the interests of the home buyers, bring a platform to redress their grievances, collect data at a repository and to encourage investment in the real estate sector. It came into effect on May 1, 2017.
Due to escalating complaints and dissatisfaction among the home buyers regarding the poor quality of houses and transactions highly favouring the real estate builders in Bangalore alone, the authorities had been urged to bring this act into existence. Also, due to non-disclosure of timely information about the progress of the projects, there was a growing frustration among them. This act was brought into effect to regain the lost faith of the home buyers who had a distasteful experience with the real estate industry. It was also meant to bring about standardized practices in the industry.
According to the rules and regulations of RERA, a builder cannot advertise or sell unless registered under RERA. Once registered, the builder will have to lay bare the complete details of the project to the buyers. The type, number, and carpet area should be made known. If the builder has any plans to include any additions or modify the project, prior consent must be taken from the allottees. Quality of the project should be thoroughly maintained. Any addition or alteration must be made known to the stakeholders and permission to undertake those changes should be done with the consent of 2/3 of the allotees.
With the effect of RERA into the picture, it has benefited the home buyers in numerous ways. Firstly, the potential home owners will have detailed information about the project such as the project plan, land title status, layouts and government approvals, thereby taking an informed decision when investing in a flat. Home buyers can be assured to get quality homes which are timely delivered. There will be clear transparency regarding the carpet area, so that the buyers would have a fair idea of much of their money is worth for how much of space.
Buying RERA approved flats protects the interests of the home buyers. There are many developers who get registered under this act and comply to its rules. One such real estate developer in Bangaloreis Chartered Housing known to develop villas, apartments and plots. All their projects are RERA approved, so one can expect transparency and fair trade practices when transacting with them.
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