Let us understand what is RERA approved? RERA is an acronym for Real Estate Regulatory Authority. The Rajya Sabha passed a bill of Parliament of India Act on 10 March, 2016. This act came into effect on May 1st, 2016. Out of the total sections, the sections that were notified were only 59 while the remaining sections out of 92 came into effect from May 1st,2017.
RERA revolves around its central aim which consists of the creation of transactions that are impartial and fair. These transactions are performed between the buyers and sellers of properties that are usually a part of the primary market. Also, two of the main objectives of enforcing this act was the protection of home shoppers and the booming of the investments in the real estate sector.
What is meant by RERA-Approved?
RERA-Approved simply means that you have registered the particular entity with the Real Estate Regulatory Authority. There are a few guidelines like approvals, insurance, land titles, etc. that needs to be followed by every builder in order to gain the title RERA-Approved.
The main features that are monitored by the RERA before assigning the title RERA Approved are as follows:
The above listed points are like the foundation stones of RERA and will help you become RERA- Approved.
Some Benefits of being RERA Approved
- Carpet Area Standardisation: Once you are RERA Approved, you get to experience a standard formula in order to calculate the carpet area. This is an ease factor and avoids any sort of clashing situation where promoters may avail you inflated carpet areas and expect to charge higher prices.
- Reducing the Insolvency Risk of the Builder: With the enforcement of RERA and the need for an entity to be RERA Approved, the promoters can make use of the amount that they get from one of their projects and invest it in some other project. Since, most of the funds that are raised through the projects are deposited in different bank accounts, the withdrawal from these accounts needs the certification of some professional.
- Advance Payments: Under the regulations specified by the RERA Act, any builder can not charge an advance application fee of more than 10% of the total cost of a project. This helps the buyers by reducing their burden of having to pay the whole amount in a single transaction.
- In case of any defects allowing rights to the buyer: With the effect of the RERA Act, the buyers get to enjoy certain rights. If there are any structural defects within 5 years of possession, then the builder will have to amend those errors within 30 days and without any charges.
- Right to compensation: If there are any errors or defects in the property's title during the possession period, the buyer can ask for compensation. This compensation amount has no limit.
- Right to Information: The buyer gets the right to attain complete information about the property that he is going to buy or the project.
- Right to Redressal: If there is any sort of dissatisfaction relative to the property faced by either the agent or the promoter or the buyer, then they are free to file a complaint. This complaint is first filed with RERA and if the decision of RERA isn’t satisfactory, then they can file a complaint in the Appellate tribunal.
- Interest paid in case of Default: If there seems to be some sort of delay from the promoter’s side, then under the regulations of RERA, both the promoter and the buyer will have to pay an equal amount of interest.
How to know if a property is RERA Approved or not?
Always be sure to buy a RERA Approved property or home. If any property is spread in more than 500 sq. metres of area, then it needs to be RERA Approved under the RERA Act before it is being launched or advertised. Builders are also supposed to consent that is required before going further with any sort of advertisements. Let’s dive into understanding the RERA Project in detail:
- Go to the RERA(state-wise) official website to check the details.
- Select the registered projects and input the project name.
- Then you will be provided with all the application and project details along with the certificate.
How to access the projects that are RERA-Approved?
To check RERA-Approved projects, you need to visit the official website of RERA. On this site, you will get all the details about RERA-Approved Projects. Then, select the ‘View Details’ option present on the project page. Once you scroll down to the section ’uploaded documents’, you will find all the documents that you need to see.
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