RERA has been designed with an aim to be a blessing for buyers of residential properties. We underline the 10 outstanding benefits that RERA has in the offering:
- Carpet Area is the Benchmark
RERA makes it mandatory for every developer to use the same formula for calculating carpet area. Hence, any developer would not be able to exploit carpet area calculations to raise the price.
- Uniform Rate of Interest
If a buyer turns a payment defaulter or a developer does not deliver as scheduled, the interest applicable on both will be the same.
- Reduced Risk of Developer Insolvency
RERA makes it mandatory for the builder to have a dedicated account for one project and all funds from that account can only be used for that project. This will prevent diversion of funds.
- Buyer Empowerment
If the builder fails to meet commitments, the buyer is entitled to abandon the project with full refund in advance or along with interest and claim compensation.
- Advance Payment
The builder is not authorized to advance payment or application fees of more than 10% of the cost of apartment before signing a sale contract
- Defect After Possession
Any construction, quality or service defect noticed within 5 years of possession of a flat will have to be mended within 30 days by the builder, free of cost. In case the builder fails to do so, the buyer can claim compensation for it.
- Delayed Delivery of Project
If a builder fails to deliver a project on time, the buyer can:
Withdraw from the project with full refund and interest payable from the due date of completion till the amount is refunded.
- Defect in Title
A buyer can claim compensation for any defect discovered in the property title after possession. The highlight is that there is no time limit within which the defect is unearthed.
- Right to Information
The buyer has the right to know everything about the project he is part of such as, the plan layout, execution strategy, phased completion status and others.
- Authority for Grievance Redressal
RERA will set up a state authority to address a buyer’s grievance against his builder. If not satisfied with the order, the buyer can file an appeal with the Appellate Tribunal, which is bound to redress the case within 60 days or record reasons if unable to resolve the issue.