The
Real Estate Regulation and Development Act (RERA), 2016, has been in
effect in India for the last couple of years, and it has been one of
the most instrumental changes in recent times to bring about
transparency and efficiency into the Indian real estate sector, and
to protect the rights and interests of homebuyers. Whenever you look
to purchase a home, it is important that you look for the builder’s
RERA compliance as indicated by the project’s RERA registration
number. RERA stands to benefit homebuyers in numerous ways, and every
state in the country has its own variant of RERA that is tailored to
the realty market of that region.
Here are some ways in which RERA benefits homebuyers in India:
- Quality construction: To ensure quality construction, builders are mandated to register their projects under RERA, and hence meet the prescribed standards for construction. They are required to be transparent about the entire process—from construction materials used to the technology employed. RERA has also imposed on builders across the country a defect liability period of five years, assuring homebuyers of transparent and quality construction.
- Timely completion: The timely completion of construction projects has been greatly emphasized by RERA. Builders are required to state the possession date of the project, and in the event that they fail to meet the target of completion, they are required to adequately compensate the allottees for the delay.
- Trustworthy developers: RERA mandates builders to register their projects under the Act, and to make the RERA registration number of each project available to the public. This ensures that the unreliable developers are ousted from the market, and only the trustworthy ones are sustained in the market. In the case of minor addition/alteration to the property, builders are required to inform the homebuyer. For larger additions or alterations, the builder must have the consent of at least two-thirds of the allottees/investors. To transfer the majority rights of a project to a third party, the builder must have the consent of at least two-thirds of the allottees/investors. Formation of Residents’ Welfare Association is also mandated by the Act.
- Fair advertising: A project cannot be announced, advertised or launched by a builder, until and unless it has been registered under RERA. Additionally, the project plan, details of layout, land title status, government approvals and sub-contractors, must be shared with the allottees. Moreover, RERA has brought in a great level of transparency by strictly defining the term carpet area and by enforcing builders to cite only this figure of a housing unit when advertising it. Carpet area has now been redefined as ‘the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment’.
- Prompt grievance redressal: This is another great advantage offered by RERA. If you have been looking to invest in properties in Pune, it is advisable that you acquaint yourself with the Maharashtra Real Estate Regulatory Authority (MahaRERA), which has been in effect since May 1, 2017. Maharashtra is the first state in India to initiate the conciliation mechanism under Section 32 (g) of RERA. Owing to this, aggrieved homebuyers can look forward to an early and amicable resolution of their disputes with their developers.
RERA approved projects by Mahindra Lifespaces are an excellent choice for investment or residence. So if you are looking to invest in properties in and around Pune, try exploring 2 BHK and 3 BHK ready-to-move-in apartments at Antheia by Mahindra Lifespaces in Pimpri.
