BENEFITS OF RERA

1. RIGHT TO INFORMATION - This is the advantage of the RERA act in favor of the home buyer. To tell the information about the property. The buyer shall be entitled to all information related to the property, be it the plan layout, execution plan, stage-wise completion status, etc.
2. STANDARDIZED CARPET AREA – It has a formula, cost of property = Carpet Area × Rate per sq. ft. RERA defined carpet areas as this would introduce standardization in the calculation of carpet area. 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. For calculating, the Carpet area method varies for every builder/developer. For example - for the same flat, the builder calculates the carpet area 1600 sq. ft. And other developers will calculate the carpet area 1500 sq. ft.

3. RIGHT OF THE BUYER IN CASE OF DEFECT AFTER POSSESSION – In case of any structural defect or any defect in workmanship, quality, provision, or services which is discovered within 5 years from the date of possession. Such a defect of an apartment will be ratified by the builder at no extra cost within 30 days.

           If the buyer failed to do so, the buyer entitled to claim compensation for the same.

4. RIGHT OF THE BUYER IN CASE OF DELAY IN POSSESSION – If the builder fails to complete the project on the due date of competition then the buyer has the option:

• To WITHDRAW from the project, wherein he shall be entitled to full REFUND along with interest payable from the due date of competition till the amount is refunded.
• To continue with the project till the competition, wherein he will be entitled to get compensation along with interest payable from the due date of competition of the project. Till the project is completed.

5. RIGHT OF INTEREST ON DEFAULT – in the case of default in payment by the buyer or default in the competition of the project by the builder. The rate of interest to be paid shall be the same for both parties.
6. REDUCES THE RISK OF BUILDER INSOLVENCY/ BANKRUPTCY – Unlike earlier, the builder is liable to deposit 70% of the amount realized for the project in a separate bank account. He can withdraw from such account only based on competition of project, which shall be certified by a civil engineer, charted accountant, and architect in practice.
7. RIGHT OF THE BUYER IN CASE OF FALSE PROMISES – In case there is a mismatch in the commitments made by the builder and the actual project. The buyer has the option to withdraw from the project. Wherein he is entitled to a full refund of the amount paid as advance or otherwise along with interest and claim compensation.
8. RIGHT OF THE BUYER IN CASE OF DEFECT IN TITLE – If at any time after the possession of the property you find that there is a defect in the title of the property. Then you can claim compensation from the builder. If not barred by limitation, which means there is no time limit within which you must discover the defect.
9. ADVANCE PAYMENTS – The builder can take not more than 10% of the cost of the apartments, villa, etc. as advance or application fees, before entering into an agreement of sale.
10. Establishment of authority for grievance redressed – Any grievances against the builder can be taken to the state authority set up under RERA. It shall have the power to redress all grievances. An appeal can be made to the appellate tribunal.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts that have been made to ensure the accuracy and correctness of the information published, White Code Legal and Tax shall not be responsible for any errors caused due to human error or otherwise.