Every person’s dream about having their own place to live.  However, not everyone is able to afford a home as the real estate prices are still soaring high as compared to the income levels.

RERA represents Real Estate Regulations Act and was brought in 2016 to ensure the interests of the home purchasers. The RERA determines the standard which provides relief to the home buyers from the abuse of unfair developers.

RERA indicates certain norms for building and advancement of real estate which will strengthen the transparency in transactions in the real estate segment.

The real estate (guideline and advancement) Act, 2016 (RERA) came into effect across the nation from 1 May 2017.

Significant Benefits of RERA Act:

1. Regulated carpet area: Earlier the carpet area on which builder figures out the price of the property was not determined. Every developer had his own strategies for estimation of the Carpet Area. However, this has been clearly defined by the RERA Act and the similar equation would be applied by all the developers for count of the carpet area. Builders process the price of a property as follows: Property Cost= Carpet Area x Rate per sq. ft. This has a direct affect on the real estate costs.
2. Reduces The Hazard of Builder Bankruptcy: Prior, the developer usually had ventures which were being constructed together and tend to jump the funds from one venture to another. Hence, after the establishment of RERA, the developer is subject to deposit 70% of the amount acknowledged in for the project in a separate bank account. Withdrawal from such account only on the basis of finishing of the project, which shall be guaranteed by a civil engineer, architect and a chartered account in practice. This will guarantee that the assets are utilized for the project only, for which they are raised and not for other purposes.
3. Right of the Buyer in case of False promises: In case of a mismatch in the commitments made by the builder and the project, the homebuyer is entitled to the choice of the withdrawal of the project with the full reimbursement of the sum paid as advance or in any other case along with interest and guarantee pay.
4. Right of the Purchaser in case of Defect after possession: In case of any structural defect or any imperfection in workmanship, quality, provision or service is found within 5 years after the possession of the apartment, such deformity will be redressed by the developer at no additional expense inside 30 days.
5. Right to Information: The homebuyer shall be entitled to all the information related to the project, whether it’s the plan layout, execution or the stage wise completion of the project etc.
6. Foundation of Authority for Grievance Redressal: Any complaint against the builder can be taken to the state authority set up under RERA which shall have the ability to redress all the grievances, In case of dissatisfaction, purchaser ca file an appeal with the Appellate Tribunal who will review your case inside 60 days and in event of inability to do so, it shall record the reasons of such disappointment.

On off the chance that builder wants to appeal to the Appellate Tribunal against the order of the Authority, and then he shall have to deposit at least 30% of the penalty or a higher percentage determined by Appellate Tribunal.

RERA is applicable to all the builders and developers except the following:

1. Where the territory of land proposed to be built does not exceed 500 sq. meters or the no. of house’s proposed to be developed does not exceed 8.
2. If the promoter has attained completion certificate prior the introduction of RERA.
3. In case of Repair or Re-development of the home which does not include marketing, selling or new allotment of any building, plot or apartment.