What do you know about RERA

1. What do you know about RERA ? RERA is defined as a real estate regulation law that represents the transparency of the real estate industry. Actions have been taken to provide relief to buyers from unfair builders. RERA was first introduced on May 1, 2016 and became fully effective on May 1, 2017. Importance of RERA RERA is very important to provide buyers with relief from the builder's negligence. RERA determines specific criteria for real estate construction and development that increase the transparency of transactions in the real estate sector. Benefits of RERA 1. Standardized carpet area: Previously, the area of carpet for which builders would calculate the price of a property was undefined. They had their own method of calculating carpet area. There was no standard formula for calculating the area of the carpet. However, this is clearly defined by the RERA method, and all builders / developers apply the same formula to the calculation of carpet area. Definition of carpet area

2. "Carpet area" means the net usable floor area of an apartment, excluding the area covered by exterior walls, the area under the service shaft, the private balcony or veranda area, and the private open terrace area. This has a direct impact on real estate prices, as most builders charge according to the area of the carpet. The builder calculates the price of the property as follows: Asset Cost = Carpet Area x Price per Square Foot 2. Default interest rate: According to RERA, both parties must pay the same interest rate for the default payment by the buyer or the default at the completion of the project by the builder. Previously, if the buyer delayed payment, the buyer would pay higher interest to the builder, and if the builder delayed ownership of the 2bhk & 3bhk Flats in Gurgaon, the builder would pay less interest to the home buyer. But now, the RERA Act clearly states that interest is the same for both parties. 3. Reduce the risk of builder bankruptcy / bankruptcy:- Builders / developers have several projects that are being built at the same time. Previous builders were allowed to redirect assets procured from Project A to support the development of Project B.

3. In any case, this is no longer imaginable, as after the RERA presentation, the developer is responsible for storing 70% of the total approved for the task in a separate financial balance. He can withdraw from such records based on the termination of a venture accredited by an architect, civil engineer, or certified accountant. It is no longer possible to redirect an asset to another task or use it for a variety of purposes, which guarantees that the asset will only be used for the reason it was procured and will not be used for many purposes. increase. In the past, there were certain cases where a builder raised assets from a home buyer to develop a home, but used the assets for a variety of purposes. They later went bankrupt and could not finish the real estate development. Since the asset must be used for the reason it was raised, this ensures that the asset is not redirected to another location and is used for the reason that cash was raised accordingly, ensuring a convenient finish on the asset. Will be done. 4. Delayed purchaser ownership: Buyers have an option if the builder fails to complete the project on the due date- To withdraw from the project, he is ready to receive a full refund with interest paid from the due date until the amount is refunded.

4. You are eligible to continue the project until the project is completed and to be compensated with interest paid from the completion date of the project until the actual completion of the project. For example, suppose a project was scheduled to be completed on March 31, 2017, but could not be completed that day. Therefore, you can choose to withdraw from the project on January 4, 2017. If you choose to withdraw from the project, you will be paid in installments from January 4, 2017 to 2017 and will be eligible for interest. 5. Buyer's rights in case of false promises: In the event of a discrepancy between the builder's commitment and the actual project, the buyer has the option to withdraw from the project and is eligible for a full refund of the amount paid in advance or otherwise, along with interest and claim compensation. 6. Prepaid: The builder can only pay 10% of the cost of the apartment, villa, etc., in some cases as a prepayment or application fee, before concluding the sales contract. 7. Buyer's rights in case of post-possession defects: If a quality or structural defect, manufacturing, provision or service defect is discovered within 5 years of owning the apartment / 2bhk & 3bhk Flats in Gurgaon , such defect will be fixed by the builder within 30 days at no additional cost.

5. If the builder does not, the buyer is eligible to claim compensation for the same.