RERA will Help You in Buying Your Dream Home – FAQs

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RERA Act has become effective from May 1, 2017 after a long and tiring struggle. Everywhere people are talking about it but what exactly is this Act all about? How is this going to be beneficial for you? Well, RERA would bring a bunch of advantages for home loan borrowers. So, here are some of the basic queries related to this Act.

Frequently Asked Questions (FAQs) on RERA Act

What is RERA?

RERA is Real Estate (Regulation and Development) Act, 2016 that has become effective from May 1, 2017. This Act has brought in the long-pending transparency in the real-estate sector after which the builders will have to complete the project within the set limit.

Who can be benefited with RERA?

After the implementation of this Act, builders will have to complete the project within the set time limit or have to pay the concession. The customers can now be confident about the date of possession and accordingly apply for loans without any hassle.

What was the need for setting RERA Act?

In order to maintain transparency between the real estate developers and the consumers, RERA Act came into existence. With the implementation of this Act, consumers will get the timely and satisfactory completion of projects. The real estate sector has grown in the recent years but has largely been unregulated from the perspective of consumer protection. Though, consumer protection laws are available, the recourse available therein are only curative, but not preventive. This has affected the overall potential growth of the sector due to absence of professionalism and standardization.

In which states is RERA fully implemented?

Well, RERA is applicable in Delhi, Gurugram, Noida, Ghaziabad, Patna, Bhubaneswar, Pune, Mumbai, Indore, Jaipur, Hyderabad, Ahmedabad, Agra, and Lucknow.

What is the time limit for grant of registration by RERA?

The registration shall be granted within the 30 days from the day of application. Post the registration, RERA would also provide the registration number, Login ID and password. With the help of these details, you can access the website of Authority and to create his/her webpage and fill in the details of the proposed project.

What are the key terms that have been defined in the Act?

Some of the key terms defined in this Act are as follows:
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Advertisement , Agreement for Sale, Allottee, Apartment, Architect, Building, Carpet Area, Commencement Certificate, Common Areas, Completion Certificate, Development, Development Works, Engineer, Estimated Cost of Real Estate Project, External Development Works, Family, Garage, Immovable Property, Interest, Internal Development Works, Local Authority, Occupancy Certificate, Person, Planning area, Project, Promoter, Prospectus, Real Estate Agent, Real Estate Project, Sanctioned Plan

What are the objectives and reasons for which the Act has been framed?

The Real Estate Act is intended to achieve the following objectives - a) Ensure accountability towards allottees and protect their interest. b) Infuse transparency, ensure fair-play and reduce frauds & delays. c) Introduce professionalism and pan India standardization. d) Establish symmetry of information between the promoter and allottee. e) Imposing certain responsibilities on both promoter and allottees. f) Establish regulatory oversight mechanism to enforce contracts. g) Establish fast- track dispute resolution mechanism. h) Promote good governance in the sector which in turn would create investor confidence.

Does the Act cover both residential and commercial real estate?

Yes, RERA Act covers both residential and commercial real estate.

Does the Act cover ongoing / incomplete projects?

Yes, both ongoing/incomplete project and a future project are covered under the Act.

Does the Act cover all projects in urban areas and in rural areas?

All projects within a ‘planning area’ registered with the Authority will be covered under the Act.

What if the possession is delayed?

The delayed possession is no longer the problem of the property owners as post the RERA, builders will have to complete the project within the set time limit or they have to pay an interest rate of 2 percentage points above State Bank of India's lending rate if the project is not delivered on time. So, it is a win-win situation for home buyers. Isn’t it great?

What about the land purchase loans?

RERA will change the functioning of Indian real estate for sure. Unlike the past, the lenders have got the option to trust the developers and the home buyers. Since there will be a proper legal documentation of the property, the lenders will obviously find it less reluctant to provide loans. So, if you have been finding it difficult to get a loan for the land purchase, RERA Act has definitely brought in a good news for you.

What is the best thing about RERA Act?

The lending rates are now down to 8.30% per annum across major banks. With RERA coming in, home loan customers have got the official rights to take charge of their property in the form of documents. This Act has brought in relief for the borrowers and has definitely affected the fraud business going on in the real estate market from quite a long time now. Now, you can be confident that once you have bought a home, it is going to be yours within the set time. From now onwards, one property will be sold to a single person only.
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As you can see that RERA would bring transparency in the real estate deals which will definitely help you buy your dream home without any hassle. So, smile now because now is the time for you to enjoy this privilege given to you by the government.