Complete Guide for Real Estate Regularity Authority (RERA)
What is (RERA)
RERA stands for Real Estate Regularity Authority came alive as per the real estate Act, 2016 which helps to defend the home buyers and boost the real estate investments. Parliament bill was passed on 10th March 2016 by Rajya Sabha. The RERA Act was applicable on 1 May 2016. At the same time out of 92 sections, only 52 were notified. And rest are applicable on 1 May 2017.
The Haryana Real Estate Regularity gives new guidelines for the sale of apartments or buildings in any real estate project. According to the new Guidelines of the Real Estate an agent or the promoter can sell the projects on a carpet area basis only regulations.
Benefits of RERA
RERA has many benefits for the buyers or the promoter and also a real estate agent. Some Benefits are below:
Standardization of Carpet Area: Before RERA the way a developer determined the cost of a project wasn't defined. However, with RERA there is currently a standard equation that is utilized in the carpet area. Thusly, promoters can't give carpet areas to increase prices.
Advance Payment: According to the rules, a developer can't take over 10% of the cost of the project from the buyer as advance or application charges. This saves the buyer from sourcing reserves quickly and paying a large amount.
Right to Information: The buyer has the right to know all the information about the project. This includes plans identified with design, execution, and completion status.
Impacts of RERA
- Fewer projects will be launched as the promoters and Developers will invest time to understand the effect of the Real Estate (Regulation and Development) Act, 2016. However, the genuine promoters/builders/developers will profit from this situation as they will face lesser competition.
- The 32 sections that have been added to the Real Estate (Regulation and Development) Act, 2016 will support a financial discipline in this area.
- Dishonest builders will disappear as they will lose sustain in the market after the RERA Act is carried out.
All the rules of the RERA Act are also applicable to the Union Territories like Chandigarh, Dadra & Nagar Haveli, Lakshadweep, Daman & Diu, and Andaman & Nicobar.