Quite often, home buyers, these days are wary of booking a home. The pandemic is just one aspect of the problem, but customers feel they are being swindled by complicated terms and conditions. Here’s the truth – the real estate developers are as accountable as they can be, thanks to the Real Estate Regulatory Authority (RERA)! Almost all real estate developers are associated with this regulatory authority to keep the business transactions fair and square. This blog will speak in length about the kind of benefits homebuyers get from RERA.
Builders will be held accountable for project defects
When it comes to the quality of the construction, it is always first on the priority list of the homebuyers. No customer would want to live in a home constructed by using substandard construction materials. It is not just about the amount they invest in; it is a question of certain life and death, that too, while you are living with your family.
Under RERA, any structural defect that happens to the property for up to five years from the date of handing over possession will have to be repaired by the developer. It shall be the duty of the promoter to rectify such defects within 30 days without asking for an extra penny.
Customers’ grievances will be addressed immediately
A number of regulatory bodies and appellate tribunals will be set up under RERA in every state to address the builder-buyer disputes. The aggrieved parties can expect a resolution from the appellate within 120 days.
What you see is what you get
With RERA keeping an eye on every move that builder is making to promote themselves, the real estate developers cannot make any false claims or promotions in the guise of advertisements. However, every advertisement will carry the RERA registration number and the builder has to be completely honest about what they are offering to the customers.
Your money will be used only for building your home
During 2010 to 2013, when some of the builders diverted the funds to construct new projects, the delays in possession occurred quite frequently. Customers had a tough time fighting this bane as the real estate developers didn’t quite comprehend the gravitas of the situation. Now, under RERA, these developers are required to transfer 70% of the money received from the buyers to an escrow account. Money can be withdrawn based on the completion stage of the project which will be approved by the engineers and Chartered Accountants of the real estate developers. Not just this, the builders would require all sorts of clearances before even selling the project.
Even after all this, if the real estate developer fails to meet the possession date, they will be required to pay an interest rate of 2% above State Bank of India’s lending rate to the home buyers. This is aside from a possibility of imprisonment of up to three years.
The excess area cannot be charged by the builders
The real estate developers used to charge extra for the built-up and super built-up area. For instance, if the buyer paid for 1,500 sq.ft., they were able to use only 900-1,000 sq.ft of carpet area. However, under RERA, selling of property under a super built-up area is prohibited and can only be sold on the basis of ‘carpet area’ which has to be specifically defined. Also, the developer would need the consent of two-thirds of the buyers, if the project undergoes any design or structural changes.
At Pyramid Lifestyle, we believe that customer satisfaction is the key to our success. We have been consistently delivering projects on-time and the trust of our growing family is witness to our transparency and commitment in every endevaour. Rest assured, all our projects are RERA approved and we ensure to continue our tradition of timely delivery by exceeding your expectations every single time.