1. Carpet Area Standardized:
Due to lack of uniformity in the calculation of carpet area, this act has firstly defined the formula for calculation of carpet area to be adopted by all builders and developers. This is a major factor for buyers as the cost of a property is calculated based on this.
Cost of Property = Carpet Area x Rate per Sq. ft.
Earlier it was seen that a lot of developers would portray the carpet area falsely in order to hike the price of the flat which is not possible now.
2. On Defaulting, the rate of interest to be paid the same for both parties
In the case of defaulting on payments & possession by the buyer and the seller, the rate of interest shall be the same for both. The developers who used to charge more interest to buyers on defaulting payments would now be charged with the same rate of interest in case of defaulting on possession date by them.
3. Reduces Risk of Builder Insolvency/ Bankruptcy
Especially in the case of big developers who are involved in multiple projects at the same time, it is now mandatory to deposit 70% of the amount realized in construction costs in a separate bank account which can be used for that project only and can be withdrawn only on completion after being certified by concerned authorities.
4. Rights of Buyer in case of False promises
When the commitments given by a builder are not met, then the buyer is eligible for a full refund of the advance amount or any amount that was paid along with interest. Also, they will be allowed to claim compensation for their grievances.
5. Advance Payment
An advance amount or any applicable fees that are collected towards a property must not be more than 10% of the cost of the house and must be collected only after an agreement of sale has been executed between the buyer and the seller.
6. Rights of Buyer in case of defects found after possession
After a buyer has possessed property in case any defects have been found within 5 years of their possession, the builder is liable to bear all the expenses for repair of it and do so within 30 days.
7. Rights of Buyer in case of Delay in possession
In case of delay in completion or possession, the buyer can either withdraw from the project in which case he is entitled to a full refund or continue with the project till completion and collect the interest for the period of delay by the developer
8. Rights of Buyer in case of Defect in Title
Once a buyer has possessed the property and in case defects in the title have been discovered the buyer is eligible to claim compensation with no time limit on the discovery.
9. Right to Information
Gone are the times when the buyer would have limited info on the house, with this reform coming in the Buyer is entitled to know all information on the project right from title deeds to the time of completion.
10. Grievance Redressal
If the buyer, the promoter, or the agent has any complaints with respect to the project, they can file a complaint with RERA. If they aren’t pleased with RERA’s decision, a complaint can also be filed with the Appellate Tribunal.
The RERA act which has already been encouraging speedy, transparent and smooth developments in Real estate for the past 2 years, has been the biggest boon to the Home buyers in India.
We Adinath Buildwell are of the opinion that when the government and authorities have implemented such an important initiative to cleanse the real estate market, buyers must take full advantage of this as there has never been a better time to invest in Indian Real estate than now.
