Importance of RERA and How We Follow the Rules
In simple terms, RERA or The Real Estate (Regulation and Development) Act, 2016, is an act of the Parliament of India that seeks to protect home-buyers and help boost investments in the real estate industry.
The Real Estate (Regulation & Development) Act, 2016 has included, among its many regulations, a provision for the establishment of a state-level Real Estate Regulatory Authority (RERA). The founding objective of this body is to monitor the real estate sector and adjudicate disputes related to real-estate projects. Let us look at the role RERA plays in the real estate market and its important functions and duties in this blog.
Real Estate Projects’ Database
We require RERA authority to maintain information about registered real estate projects. It has all the details pertaining to the real estate project, including the information provided in the application form by the party in question for which the permission has been granted. All of this information must be available for public viewing at all times.
Real Estate Agents’ Database
RERA is required to maintain the details of the registered real estate agents on its website, also for public viewing at all times. It must have the name and photograph of the real estate agents who have applied and are registered under the act. It also has a list of all the applications which have been rejected.
RERA regulations are strict as per the jurisdiction under which the property is and standard fees are levied upon the allottees, promoters or the real estate agent, as per the situation demands.
RERA authorities supervise the obligations required by the promoters, allottees and the real estate agents under the RERA act and the rules and regulations they need to follow. And, RERA authority must also ensure the compliance of its regulations, orders or directions administered in the exercise of the powers under the RERA act.
RERA covers all residential and commercial projects, including shops, offices and buildings of any kind. It applies to the development of property and not to renting property.
We, at Ark Real Estate & Infra, make sure that we follow the rules and regulations set by the RERA.
Right to information
The buyer has the right to know about all the details pertaining to the project. The plan layout, the plan execution, the completion status, etc. are all provided to the buyer with complete transparency by Ark Real Estate & Infra.
Rate of interest on default
Earlier, the rate of interest in case the builder delays the possession of the property would be less and if the buyer delays the payment for the property, the interest would be higher.
Now, as per RERA, by following the rules and regulations, we, at Ark Real Estate & Infra, ensure that the interest paid is the same in both cases.
Under RERA we ensure not to take over 10% of the cost of an apartment or the property in question from the buyer.
Standardised Carpet Area
RERA has defined the method of calculation of carpet area of the property as- Cost of Property = Carpet Area x Rate per sq ft
We ensure that this method is followed and that the buyer pays exactly for what they are getting.
Reduces the Risk of Builder Insolvency/ Bankruptcy
Many builders have over one project under construction. As a result, they would divert the funds received by buyers to develop other projects unrelated to the property the buyer has paid for. But under RERA the developer cannot do that.
As Ark Real Estate & Infra has many projects under construction simultaneously, we make sure that the funds collected from the buyer go only to the project it’s intended to go to.