RERA has numerous advantages for the consumer, the promoter, and the real estate representative. These include:
- Uniformity of carpet area: Before RERA how a developer estimated the price of a project wasn’t defined. However, with RERA there is now a regular formula that is used to determine carpet area. This way, builders cannot present extended carpet areas to increase the cost of the property.
- Reducing the risk of insolvency of the builder: Most middlemen and developers manage to have varied projects being contracted at the same period. Earlier, builders were obliged to move supplies rose from one project to that of another. This is not possible with RERA since 70% of the funds raised need to be deposited in a separate bank account. These funds can be withdrawn only after certification by an engineer, a chartered accountant, and an architect.
- Advance payment: As per the rules, a builder cannot take more than 10% of the cost of the project from the buyer as advance or application fees. This saves the buyer from having to source funds fast and having to pay a large amount.
- Rights to the buyer in case of any defects: Within 5 years of possession, if there are any structural defects or problems in quality, the builder has to rectify these damages within 30 days at no cost to the buyer.
- Interest to be refunded in case of negligence: Before RERA, if the promoter deferred possession of the property, the interest paid to the buyer was much cheaper than if the buyer withheld amounts to the promoter. This has changed with RERA and both parties have to pay the same amount of interest.
- Buyer’s rights in case of false commitments: If there is a mismatch in terms of what was promised by the builder and what has been delivered, the buyer is entitled to a full reimbursement of the cost that was paid in accommodation. At times, the constructor may have to provide interest on the price as well.
- If the defect in the title: If at the time of possession, the buyer discovers that there is a defect in the title of the property, the customer can demand reimbursement from the promoter. There is no limit to this amount.
- Right to information: The buyer has the right to know everything about the project he has brought a property in. This involves projects compared with plan, achievement, and fulfillment state.
- Complaint Redressal: If the client, the promoter, or the broker has any grievances concerning the outline, they can file a complaint under the RERA Act. If they aren’t gratified with RERA’s ruling, a complaint can also be registered with the Appellate Tribunal.
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