{"id":791,"date":"2020-01-16T10:28:49","date_gmt":"2020-01-16T10:28:49","guid":{"rendered":"https:\/\/www.propertypistol.com\/blog\/?p=791"},"modified":"2020-01-16T10:33:52","modified_gmt":"2020-01-16T10:33:52","slug":"some-important-things-you-need-to-know-about-rera-act","status":"publish","type":"post","link":"https:\/\/www.propertypistol.com\/blog\/some-important-things-you-need-to-know-about-rera-act\/","title":{"rendered":"Some Important things you need to know about RERA Act"},"content":{"rendered":"\n<p><em>Real Estate Regulatory Authority (RERA) was brought to action to wipe out the existing discrepancies and issues within the <a href=\"https:\/\/www.propertypistol.com\/\">real estate<\/a> sector.<\/em><\/p>\n\n\n\n<!--more-->\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/www.propertypistol.com\/blog\/wp-content\/uploads\/2020\/01\/RERA-ACT.jpg\" alt=\"\" class=\"wp-image-793\" width=\"307\" height=\"147\" srcset=\"https:\/\/www.propertypistol.com\/blog\/wp-content\/uploads\/2020\/01\/RERA-ACT.jpg 324w, https:\/\/www.propertypistol.com\/blog\/wp-content\/uploads\/2020\/01\/RERA-ACT-300x144.jpg 300w\" sizes=\"(max-width: 307px) 100vw, 307px\" \/><\/figure><\/div>\n\n\n\n<p>The Indian Government in May 2016 passed the RERA Act to facilitate transparency in the home buying process. The main aim of this act is to address concerns of homebuyers, <a href=\"https:\/\/www.propertypistol.com\/broker-service\">brokers<\/a>, builders, and stakeholders of the real estate industry. One must know that RERA has applied many transformations and more are on the anvil. That\u2019s why, as a home buyer or a builder, knowing <a href=\"https:\/\/www.propertypistol.com\/blog\/interview-house-of-hiranandani-impact-of-gst-rera-pmay-schemes\/\">RERA<\/a> rules and guidelines will help you easily navigate the real estate scenario.<\/p>\n\n\n\n<p><strong>What\nis RERA?<\/strong><\/p>\n\n\n\n<p>RERA stands for Real Estate Regulatory\nAuthority. The act is basically to keep transparency in the realty sector and\nhas come into force with all its 92 sections from 1st May 2017 across India.\nTill now 14 states and union territories like Gujarat, Uttar Pradesh, Madhya\nPradesh, Bihar, Andhra Pradesh, Odisha, and Maharashtra have notified their\nrules with RERA and others are expected to follow suit.<\/p>\n\n\n\n<p>The implementation of RERA is being very\nbeneficial to the homebuyers because builders now are accountable for the\ntimely delivery of the projects and to protect buyers from fraud sellers. The\ndevelopers would go gain from the increased confidence of the consumers in a\nregulated environment.<\/p>\n\n\n\n<p><strong>Why\nis RERA needed?<\/strong><\/p>\n\n\n\n<p>According to the RERA Act, RERA committees\nhave been set up across India to promote uniformity and transparency, and to\nregulate the real estate\nsector. With RERA in place, every builder or developer is required to inform\nhomebuyers regarding the progress of construction. It also includes providing\nkeys to their property by the mentioned date and abides by every rule outlined\nby RERA, to ensure accountability.&nbsp; <\/p>\n\n\n\n<p><strong>What\nare the key benefits offered by RERA?<\/strong><\/p>\n\n\n\n<p>We can see a positive change in every facet\nof the real estate sector due to RERA. Here\u2019s how&nbsp; <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>RERA aims to reduce project delays and mis-selling. To follow this, authorities have made it mandatory for all builders\/developers to carry out RERA registered before they start a project.<\/li><li>RERA has been sub-divided into smaller regulatory bodies, each of which looks after the real estate development in a single state or union territory in India.<\/li><li>The rules of RERA are applicable to both commercials as well as residential properties.<\/li><li>The standardization brought about by RERA aims to protect the interests of buyers and developers alike.<\/li><li>The RERA Act has brought about more accountability and transparency within the <a href=\"https:\/\/www.propertypistol.com\/blog\/shrinking-flats-is-the-new-trend-in-mumbai\/\">real estate industry<\/a>.<\/li><\/ul>\n\n\n\n<p><strong>How\nhas RERA positively impacted homebuyers?<\/strong><\/p>\n\n\n\n<p>With the implementation of RERA\u2019s rules,\nbuilders have to disclose every detail of the project they have undertaken on\nRERA\u2019s official website.&nbsp; More\nprominently, they have to update this information regularly. This assures\nbuyers of transparency regarding project timelines.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>As per RERA rules, you have to pay only for the carpet area or the area enclosed by walls. You are not liable to pay for the super built-up area that consists of stairs, lifts, balconies, and lobbies.&nbsp; <\/li><li>Developers have to put 70% of the money they collect from their customers into a separate bank account, which they can only use for construction purposes.<\/li><li>RERA lays importance on the timely completion of projects. If there\u2019s a delay, then the builders have to pay his homebuyers interest of 2% over SBI\u2019s MCLR for the period of delay.<\/li><li>After you get a handover, you can report construction defects for up to 5 years and have the developer rectify them.<\/li><li>Whatever the disputes may be, builders have to resolve them with homebuyers within 120 days of it being filed.<\/li><li>The <a href=\"https:\/\/www.propertypistol.com\/builder-service\">developer<\/a> cannot make any additions or alterations to the building plan without any prior information to the two-thirds of the owners regarding such a change. It can only proceed if a majority of homebuyers consent.<\/li><li>The Act forbids builders or developers from taking more than 10% as advance from homebuyers. If at the time of possession you discover a discrepancy in your title deed, you can immediately ask for compensation from the developer.&nbsp; <\/li><\/ul>\n\n\n\n<p><strong>Loans for projects under RERA<\/strong><\/p>\n\n\n\n<p>As a homebuyer, it is important for you to\nselect a RERA\nregistered project so that you make a safe investment and eliminate any possible\nlosses. In addition, apply for a profitable home loan to simplify and economize\nthe home-buying process. Apart from getting access to a hefty sanction on a\ncompetitive interest rate, you can also enjoy a flexible tenor and other\nbenefits. Furthermore, you can apply for the loan under PMAY and get CLSS\nbenefits for up to Rs.2.67 lakh. Best of all, easy eligibility criteria and\nminimal documentation requirements make this loan very easy to apply for.<\/p>\n\n\n\n<p><strong>RERA\nAct in different states of India:<\/strong><\/p>\n\n\n\n<p>Three years have passed since the RERA Act was passed and currently, more than 22 Indian states and 6 union territories follow it. Not only has RERA been implemented, but it has also actively worked towards solving complaints and disputes in each state.&nbsp; <\/p>\n\n\n\n<p>For example, MahaRERA or RERA Maharashtra\nhas received around 6,631 complaints (as of April 2019) and has resolved 64%\ndisputes. The following suite is other states including Manipur, West Bengal,\nand Assam that re gearing up to launch their RERA websites. <\/p>\n\n\n\n<p>For now, you must have got an idea about the RERA Act. So, buyers too have to abide by RERA. In case found guilty of non-compliance, then you will have to pay a daily penalty of up to 5% of the approximate cost of the project. Also, non-compliance with the Appellate Tribunal can lead to imprisonment for up to 1 year, or 10% of the project\u2019s probable cost, or both.<\/p>\n\n\n\n<p style=\"background-color:#e0b98f;font-size:12px\" class=\"has-background\"><em><strong>Disclaimer:&nbsp;<\/strong>The views expressed above are for informational purposes only based on industry reports and related news stories. Propertypistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Real Estate Regulatory Authority (RERA) was brought to action to wipe out the existing discrepancies and issues within the real estate sector.<\/p>\n","protected":false},"author":2,"featured_media":801,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_eb_attr":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[48],"tags":[50],"class_list":["post-791","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-know-your-real-estate","tag-rera","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is Real Estate Regulatory Authority (RERA)? - 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