RERA in Home Loan
Each one of us dreams of becoming a home owner. But the fact is that not everyone can afford a home owing to the ever escalating prices of real estate. To make matters worse, almost all realtors or builders had their own norms, practices and regulations when it came to structuring the builder-buyer agreement, essentially in a manner that best favoured the builder. This left the hard-working common man with very limited means or rights to protect his interest, especially while he was making such a large investment with his life’s savings. Keeping the interest of the home buyer in mind, the Government of India introduced the RERA Act. Let’s understand what is RERA and what it entails.
What is RERA in real estate?
The Real Estate Regulations Act or RERA was introduced in 2016 by the Government of India in order to protect the interests of home buyers. The act was launched so as to provide some much need relief to buyers form the unfair, illegal and unethical practices of real estate builders, which had become common place. Under the RERA Act, the Government has laid down certain norms and regulations for the development of real estate. The norms are also meant to provide home buyers with a sense of transparency when it comes to projects and transactions done in the real estate sector. There are several RERA benefits, with the most prominent one being that that home buyers now have several rights related to property purchase, while property builders and developers are expected to follow certain, mandatory rules and regulations.
Also, there is a specification for the creation of a designated Real Estate Authority and Appellate Tribunal for every state in the country under this Act. Moreover, if a home buyer finds a developer indulging in any wrong doing, there is a provision for home buyers to file a formal complaint with the state’s RERA authority.
Things to know about RERA
Having learnt RERA meaning is not enough. As a buyer, you must ensure you learn about it in detail when you purchase your property. Remember, RERA provisions are applicable to both residential as well as commercial properties. The aim of the act is to bring in accountability and transparency in the real estate sector and minimise the rampant delays in projects as well as misconduct by builders.