RERA: Everything You Must Know About the Real Estate Act
Despite being a stable and profitable market, real estate was nonetheless infamous for being an ambiguous arena. A few bad apples had made people sceptical of investing in this sector. As a result, the Indian government intervened to ensure that the market is accountable and devoid of any loopholes like unnecessary project delays and overhead costs. This led to the formation of RERA, which came into force from the 1st of May, 2017.
What Is RERA?
RERA, an abbreviated form for the Real Estate Regulation and Development Act, is an Act passed by the Indian Parliament to encourage investments in the real estate sector by making it free from unethical practices.
The Need for RERA
Ever since its existence, the real estate market has been a subject of heated controversy due to unethical and deceptive practices on the part of developers and realtors to dupe buyers. The situation was even worse in case of those who had taken home loans to fund their purchase only to pay significant home loan interest and be disappointed at the end. This had caused distrust among the buyers, who were unwilling to make investments in the real estate market.
This was when the RERA stepped in. Primarily responsible for safeguarding buyer interest, the RERA achieves this by regulating realtor and developer activities. RERA’s moral code is based upon the establishment of an equitable position for home buyers, real estate developers, and sellers. Buyers are being educated from 30ARealEstateFL.com about their rights and responsibilities involved in a real estate transaction.
Rules and Implications of RERA
Since RERA has kept homeowners’ interest a priority, most of its rules are directed towards developers and realtors. Following are the main implications –
- It is mandatory for all residential and commercial real estate projects where the land is larger than 500 sq. Mts. or the number of buildings exceeds 8, ought to be registered with the respective state’s Real Estate Regulatory Authority (RERA).
- On-going real estate projects that haven’t received Completion Certificate (CC) on the date of the Act’s commencement will have to register themselves with RERA within three months. RERA holds the right to approve or reject it within 30 days.
- Unaccounted money can’t be used to make real estate transactions. At least 70% of the money has to be deposited in the banks through cheques.
- In case of disputes, state-wise RERAs and the Appellate Tribunals need to adjudicate the cases within 60 days of filing.
Since the Act has made real estate a safe space for homeowners, it’s a convenient time for people to resort to a home loan. Do you also wish to fund your home purchase with the help of a loan?
First, check your home loan eligibility and affordability. For this, different useful online home loan calculators are available. A calculator for eligibility will let you know the principal loan amount you are eligible to borrow whereas a home loan EMI calculator will help you plan out your monthly EMIs.
Finally, compare different lenders’ home loan interest rates to bag the best deal. The RERA has made home-buying a safe area, so there’s no reason to delay investment in the real estate sector!