Top 8 Benefits of the New RERA Act for Property Buyers
May 23, 2024Homes and People

Top 8 Benefits of the New RERA Act for Property Buyers

by Godrej Properties Limited

650

2

Buying a home is a long-cherished dream for many. However, the entire process of purchasing a home can be a tricky matter for many, especially first-time home buyers. Traditionally, real estate transactions have faced challenges related to uncertainty and mismanagement, making property purchases all the more difficult. The introduction of the Real Estate Regulatory Act (RERA Act) on 1 May 2016 simplified property transactions, putting homebuyers at ease.

Here are the top 8 advantages that the implementation of the RERA Act brings to the table: 

  1. Increased Transparency: Transparency is one of the top benefits for homebuyers. The Real Estate Regulation and Development Act mandates developers to register their projects with detailed information, providing buyers with transparency regarding project status, layout plans, approvals, and timelines. This gives the homebuyers a sense of security while buying any property.
  2. Enhanced Accountability: Developers are required to deposit a percentage of the project cost in a dedicated escrow account, which ensures funds are utilised for the specific project and prevents diversion to other ventures. This also ensures that a project is not terminated or the completion is delayed due to a shortage of funds.
  3. Timely Project Delivery: RERA imposes strict penalties for project delays, incentivising developers to adhere to promised timelines and deliver projects on schedule. Homebuyers can expect the delivery of their flats or houses on time, in the designated schedule.
  4. Quality Assurance: Only good-quality materials are to be used during the construction of any residential or commercial project. Developers must adhere to specified construction and quality standards, ensuring that properties meet prescribed quality benchmarks and are free from defects.
  5. Buyer Protection: Homebuyers can obtain project-related information, seek compensation for delays, defects, or misrepresentation, and cancel bookings with appropriate refunds. This boosts homebuyers' and investors' confidence to invest in real estate.
  6. Advance Disclosure: Just as homebuyers can obtain project-related information, developers must furnish all project-related information, including layout plans, land titles, carpet areas, and completion timelines, at the time of registration, helping buyers to make informed decisions.
  7. Standardised Sales Practices: RERA mandates fair and transparent sales practices, prohibiting misleading advertisements, unfair contract terms, and other unethical practices that exploit homebuyers and investors.
  8. Sustainable Development: RERA promotes sustainable development practices by encouraging developers to adhere to environmental norms, incorporate green building technologies, and prioritise eco-friendly construction methods.

The introduction and implementation of RERA rules not only empower homebuyers to purchase their dream home without any worry but also simplify the entire process. Do visit the official portal of RERA within your jurisdiction if you are planning to buy a property for a seamless property buying experience.


 

Frequently Asked Questions

Q: How does the RERA Act promote transparency in the real estate market?

A: Under RERA Law, the developers are required to furnish all the project-related details, timelines, etc., to the property buyers, which promotes transparency in real estate transactions.

Q: What are the key benefits of the RERA Act for property buyers?

A: Homebuyers and investors can enjoy multiple benefits of RERA, such as increased transparency in the entire property buying process, timely delivery of projects, being able to make an informed decision, and so much more.