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Monday, July 15, 2024

Benefits of the new RERA Act for Property Buyers

Buying a home is every person’s dream. However, everyone is not able to afford a home as the real estate prices are still very high as compared to the income levels.To add to the misery, every developer/builder earlier had his own norms and there were no standard norms. Every builder followed different practices and structured the builder-buyer agreement in such a manner which is in favour of the builder.

RERA stands for Real Estate Regulations Act and was introduced in 2016 to protect the interests of the home buyers. The main aim of RERA is to provide relief to the buyers from the malpractices of unfair builders.RERA specifies certain norms for building and development of real estate which will enhance the transparency in transactions in the real estate sector.

Benefits of RERA Act

1,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 what used to happen was that in case the builder delays the possession of property – the interest paid by builder to the home buyer was less whereas in case the buyer defaulted – the interest to be paid by the buyer to builder was higher.

2.Advance Payment:
The builder can take not more than 10% of the cost of the apartment, villa etc. as advance or application fees as the case may be, before entering into an agreement of sale.

3.buyer in case of Defect after possession:
In case of any structural defect or any defect in workmanship, quality, provision or service is discovered within 5 years after the possession of the apartment, such defect will be rectified by the builder at no extra cost within 30 days.If the builder fails to do so, the buyer shall be entitled to claim compensation for the same.

4.Rights of the buyer Delay in possession:
If the builder fails to complete the project on the due date of completion then the buyer has the option-To withdraw from the project, wherein he shall be entitled to full refund along with interest payable from the due date of completion till the amount is refunded.

5. buyer in case of defect in Title:
If at any time after the possession of property you find that there is a defect in the title of property then you can claim compensation from the builder. It is not barred by limitation, which means there is no time limit within which you have to discover the defect

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