Navigating RERA: A Homebuyer's Guide to India's Real Estate Regulation Act

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    Navigating RERA: A Homebuyer's Guide to India's Real Estate Regulation Act

    The Information mentioned here was last updated on:

    18/7/2024

    Navigating RERA: A Homebuyer's Guide to India's Real Estate Regulation Act

    If you are planning to buy a property in India, you would have definitely heard of the Real Estate Regulation Act (RERA). RERA aims to protect the interest of homebuyers and bring transparency to the real estate sector. However, with its complex regulations and procedures, navigating RERA can be a daunting task. In this article, we will guide you through the key provisions of RERA and how they impact homebuyers.

    Registration of Projects

    One of the most important provisions of RERA is that every real estate project must be registered with the local regulatory authority. The builder should provide all the project details, including land ownership, construction details, and completion timeline. This ensures that fraudulent builders cannot sell unapproved or non-existent projects.

    Compulsory Disclosure

    Under RERA, the builder is obligated to disclose all the details about the project, including land ownership, government approvals, project plan, completion timeline, and any other relevant information, to the homebuyer. This gives the homebuyer the opportunity to make an informed decision about the property purchase.

    Escrow Account

    RERA mandates that every builder should open a separate escrow account for each project, which is maintained by an independent bank. The builder cannot use the money from this account for any other purpose and must only withdraw money based on the percentage of completion of the project. This ensures that the builder does not divert funds meant for the project.

    Penalties for Delayed Possession

    Under RERA, the builder is held accountable for the timely delivery of the project. If the builder fails to meet the completion timeline, he has to pay penalties to the homebuyer, which is calculated based on the sale price of the property and the delay period. This ensures that the builder takes the necessary steps to complete the project on time.

    Complaint Redressal

    RERA has set up a separate authority to handle all the disputes related to real estate projects. Homebuyers can approach this authority if they have any grievances with the builder. The authority is obligated to resolve the dispute within 60 days. This gives the homebuyer the confidence to invest in real estate, knowing that there is a mechanism to address their grievances.

    Conclusion

    RERA is a step in the right direction to bring transparency and accountability to the Indian real estate market. As a homebuyer, you must be aware of your rights and the provisions of RERA to make an informed decision and ensure that your investment is protected. With the right guidance and understanding, navigating RERA can be a smooth and hassle-free process for every homebuyer.

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