The Real Estate (Regulatory and Development) Act makes it obligatory for real estate builders and agents to register with Authorities. The process filters out fraud practices and deceitful agents from the industry. These benefits are not just limited to home seekers but extend to real estate developer and agents too by making it a more professional, transparent and secure market.
Let’s know the benefits of the implementation of RERA Act:
- It has formed a State-level regulatory body to redress complaints from home buyers. Even RERA approved promoters and brokers are empowered to complain to the Authority regarding any fraudulent practices.
- The Act mandates that promoters deposit up to 70% of the money collected from home buyers towards paying for their purchase. It must be deposited in a separate bank account with a scheduled bank. The funds in this account must then be used only to cover the expenses for land acquisition or construction of the property.
- It fosters authenticity as only RERA registered projects are allowed to sell. These projects can be registered only after meeting the eligibility criteria of RERA. This discourages out-of-law practices and creates more future buyers.
- RERA has addressed one of the biggest concerns of home buyers which is a timely construction of the property. Its guidelines ensure that builders complete the project within the stipulated time frame. Where failure to comply with the completion deadline can make them liable to heavy monetary penalty and imprisonment up to three years. Moreover, homebuyers not satisfied with the property can claim a refund of the paid amount within 15 days of buying it.