Real Estate Regulations Act (RERA) is the biggest boon for real estate buyers have received. The Government of India is going all guns blazing to emphasize this Act pan India, as early as possible. This will no doubt safeguard a buyer’s interest to a big extent. A buyer in the nearby future will definitely gain confidence before investing in a property.
So what are the stand-out points of RERA?
Let’s take a look at some of the significant rules which will benefit as a buyer.
1. The Bill provides for mandatory registration of all projects with the Real Estate Regulatory Authority (RERA) in each State. Real estate agents who intend to sell any plot, apartments or building should also register themselves with this authority.
2. It makes it mandatory the disclosure of all information for registered projects like details of promoters, layout plan, land status, schedule of execution and status of various approvals. Every project measuring more than 500 square meters or more than eight apartments will have to be registered with the RERA
3. The current practice of selling on the basis of the ambiguous super built-up area for a real estate project will cease as this law makes it illegal. Carpet area has been clearly defined in the law.
4. Fifty percent of the buyers’ investment has to be deposited into an escrow account that would be used only for the construction of that project.
5. The Bill prohibits a developer from changing the plan in a project unless two-thirds of the allottees have agreed to change.
For instance, a fantastic residential society by Provident Developers, Viva City coming up on the Kanakpura Road will ensure all the RERA regulations are kept in mind. Provident Viva City’s specifications are world class and now since they are RERA registered, the developers cannot offer false promises under any circumstances.