Buying property is a high-value investment that requires a lot of caution and research before finally making the commitment to buy. And in the earlier days prior to the implementation of the RERA Act, it was the builders who had the power to frame the builder-homebuyer agreement of sale, as per the builder’s discretion. Ultimately, the homebuyer was at the complete mercy of the builder. This resulted in a lot of malpractice with the homebuyer suffering at the hands of the builder.
To give some measure of relief to the homebuyer, the government eventually intervened and introduced the RERA (Real Estate (Regulation and Development) Act, 2016. By this act, the homebuyer gets empowered to seek legal solutions, make empowered decisions and get compensated for any wrongdoing by the builder. It also makes the builder liable to follow all the rules laid out by RERA, including timely deliveries as per the agreement of sale. The RERA Act is applicable to both commercial and residential buildings in every state of the country. Here’s a look at some of the benefits of RERA:
As per the RERA Act, builders need to provide complete transparency in the information provided to the homebuyers. The builders need to keep the homebuyers informed about every aspect of the project’s stagewise completion and update the same on their websites. Builders are now obliged to take the consent of the homebuyers in case they are going to make any changes to the project design.
Another key improvement that has come in because of RERA is that builders can no longer charge homebuyers for the built-up and super built-up areas of the project. They are only allowed to charge for the carpet area – that is, the area that falls within the walls of the apartment. Unlike earlier, builders can now no longer charge the homebuyer for common areas such as that covered by external walls, common areas like lobby, lifts, stairs, staircase landings, balconies and other common areas.
As per RERA, the building should remain free of any construction defect for at least the first five years after the homebuyer moves in, otherwise, the builder is responsible for repairing the defect free of cost. The repair work also needs to be completed within 30 days of intimation.
Earlier, the homebuyers had to suffer through the inconvenience of delayed delivery of projects and were completely at the mercy of the builder’s whims. With the RERA Act coming in, it is now mandatory for builders to deliver within the stated time or face having to pay the homebuyer penalty at an interest rate of 2% or above the borrowing rate offered by SBI. There is also the possibility of a 3-year jail term.
The RERA Act also directs that the builder needs to deposit at least 70% of the funds received from the homebuyer into an escrow account. The money from this account can only be used for the said project and withdrawn according to the construction stage, and as approved by the builder’s engineers and chartered accountants. Additionally, the builder cannot demand more than 10% of the property value in advance before drafting a sales agreement.
A special appellate tribunal set up under a state-wise RERA further ensures that homebuyers do not get to face inefficient grievance redressal systems and long-pending court cases when a builder defaults. The RERA Act provides a mandate for fast-tracking all such cases within two months to retain homebuyers’ belief in the judiciary system intact.
Since the enactment of RERA, homebuyers have benefited immensely and malpractices by builders have gone down drastically. When buying a home, do ensure that the project has been registered under RERA to ensure a smooth buying experience. The luxurious ‘Anthem’ apartments in Trivandrum are one such project that will delight the homebuyers. Fully endowed with a multitude of lifestyle-enhancing amenities, these spacious 2, 3 & 4BHK apartments in Kowdiar are where luxury living in the city reaches new heights.
Located in close proximity to premium schools, shopping destinations and restaurants, the Anthem apartments are well-connected to all important parts of the city. They are built by the prestigious Prime Property Developers (PPD), builders who have been around for almost three decades and have numerous happy and satisfied customers to back them!
Come be a part of the PPD family today and invest in the Anthem!