Benefits of Buying RERA Registered Apartments
The Government of India surpassed out the Real Estate (Regulation and Development) Act (RERA) in 2016 to set up an authority for the Real estate sector. And all sections of the Act shall come into force with effect from May 1, 2017. Under RERA Act, the Government of Kerala established Kerala Real Estate Regulatory Authority (K RERA) for the smooth regulation and promotion of real estate sector in the State of Kerala. The act will help to bring more transparency and credibility to the entire purchase procedures and It will also help to redefine the promoter-buyer relationship in the real estate sector.
RERA is applicable to all Builders and Developers except the following real estate projects
- Where the area of the land does not exceed 500 square meters or number of apartments does not exceed 8 (eight)
- Where the Promoter has received completion certificate for a real estate project prior to commencement of RERA and
- Where the work involved is limited only to renovation or repair or re-development and does not involve marketing, advertising, selling or new allotment of any apartment, plot or building.
RERA Registration shall be valid for the period required to complete the project or phase, as declared by the builder / developer. It may extend the validity of registration in the event of a natural calamity like flood, drought, fire etc and also in case of a war. Basically only force mature events are the ones where real estate developer can have some leeway of not delivering on time.
BENEFITS OF RERA ACT
- A standard method for the calculation of Carpet Area has clearly defined by the RERA Act and the same formula would be applied by all builders/developers for calculation of the carpet area.
- RERA Act has now clearly specified that the interest paid by both builder and home buyer shall be the same.
- This act will reduces the risk of builder Insolvency/ Bankruptcy by ensuring that the funds raised will be used for the purpose only for which they are raised and not for other purposes.
- The buyer has the right to withdraw from the project with a full refund of the amount paid along with interest and claim compensation if the builder backs out of the deals or any commitments made by the builder and the actual project.
- The builder has no rights to take more than 10% of the cost of the apartment, villa or any property as advance or application fees before completing the sales agreement.
- Builders will have to give 5-year warranty against structural flaws as per RERA. The buyer shall be entitled to claim compensation if builders fail to rectify the damages of properties.
- A buyer can file a case and send legal notice to the builder and claim your refund along with the interest or damages, when a builder delays the possession of property.
- Buyer has the right to claim a compensation from the builder for the defects you find in title of property you find. There is no time limit within which you have to discover the defect.
- Buyer has the Right to Information (RTI) query with the Government-run authorities is simple and hassle-free under RERA. To know the information about the functionality of regulatory authorities or status update on registered projects an applicant can file an RTI query online.
- There is a separate system under RERA which named as RERA grievance redressal to address the complaints of home buyers. Depending upon the grievance or the issue, a RERA complaint can be filed in every state before three authorities: RERA Authority, RERA Tribunal and RERA
The execution of RERA has eased out the process of purchase registration of properties and complaint registration in case of a delayed project. Home buyers are also confident of faster and fair resolutions under the RERA law. However, it is imperative to do due diligence. One must only invest in a project by a credible builder with an excellent past record and market reputation and stay abreast of the latest changes in the rules and regulations of the real estate sector.
Galaxy Builders one of the pioneer builders in calicut has always maintained loyal relations with its customers. To take ahead this loyal relationship with its customers along with RERA mandates, Galaxy Builders have their projects Eleve Maison, Magnum Opus and Meridian Verde registered with RERA in Calicut.