When the Real Estate Regulatory Authority (RERA) Act was introduced in the year 2016, many home buyers who were speculative of investing in Real estate in Mumbai, heaved a sigh of relief. Now that this act is in place, there is no space for real estate builders to do any mistakes or dupe the customers. This act also helps best real estate developers in India to gain the trust of home buyers. The main objective of the RERA act is to safeguard the interest of home buyers as well as bring about standardization in the real estate sector. The introduction of the act has also led to the creation of a mechanism wherein issues such as project delays, quality of the projects, pricing of the property, etc can be dealt with transparency. The RERA act aims to promote transparency, accountability, and efficiency in the real estate sector.
Here we share the 5 major benefits of the RERA Act for home buyers.
1. Right to Information About the Property
This is one main advantage of the RERA act in favor of the home buyer. This information can help you on multiple fronts. The developer is entitled to share all the details regarding the project such as plan layout, plan of execution, completion stages, the status of competition, etc.
2. Standardized Carpet Area
Each builder had his own formula to calculate the carpet area of a property. But RERA has a standardized version of how to calculate the carpet area. RERA defines carpet area 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’.
With this definition, the builders need to clarify how much carpet area they are offering as the price of a property in real estate in India is dependent on the carpet area.
3. Builders Will Be Held Responsible for Any Defect/Fault in The Construction
Under the RERA act if there is any defect or fault in the construction of your apartment then the repairing has to be done by the real estate developer. This is for the structural defect in the property for up to 5 years from the date of possession. The repairing has to be done within 30 days once the fault is detected.
4. Grievances Will Be Addressed and Solved Quickly
In case you are dissatisfied with the construction or if there is any other issue with your commercial property or residential property in Mumbai, then you can approach the Appellate Tribunal. This tribunal will address your case within 60 days.
5. Builders Won’t Be Able to Delay the Projects
Under the RERA act, each real estate developer needs to give a delivery date for the handover of the possession of the apartments. If the builder is not able to complete the project until the delivery date, then they will have to face penalties.
Real estate investment in Mumbai has seen a rise after the introduction of the RERA act. Many new properties in Mumbai are now being built which are all RERA registered.