What is RERA?
Buying a home is every person’s dream. Real Estate Regulations Act (RERA) introduced in 2016 was meant to facilitate that dream of every Indian.Real estate is an investment of a lifetime and not everybody can afford a home for themselves in the metros, tier I and tier II cities like Guwahati in Assam. To add to the misery, every developer / builder earlier had his own norms and standards. They followed different practices and structured the builder-buyer agreement in a manner that favored the builder. The common buyer had very limited rights.
RERA-Benefits
*Carpet Area Standardization:
The carpet area is the actual useable area that will be covered by a carpet, or the apartment area, omitting the thickness of the inner walls. Builders had their own method or calculation for calculating the carpet area of a flat/property prior to the Rera Act.
*Rate of interest on default:
In case of default in payment by the buyer or default in completion of the project by the builder, the
rate of interest to be paid shall be the same for both parties. Earlier, the interest burden on the home buyer was higher than the interest that the builder agrees to pay in case of construction delays. There was no parity in the interest to be paid by both the parties.
*Advance Payments:
Before engaging in a sales agreement, a Builder cannot take more than 10% of the cost of the Flat as an advance or application fee. This is one of Rera’s most significant advantages.
*Right to information:
The buyer is entitled to all the information related to the project. The right to information clause gives him that privilege. He can ask details about the plan layout, execution plan, stage wise completion status etc.
*Lower Real Estate Prices:
When the RERA Act took effect in 2016, it will have a direct influence on the price of a home, land, and the interest rate on your home loan.The RERA statute has enhanced trust and transparency in the real estate business. The real estate sector has also seen an uptick in investment.All of these elements contribute to the sector’s growth, and rising demand is lowering prices and, as a result, home loan interest rates.
