Buying Your First Home? Here’s why you should only go for RERA-registered projects.

Buying your perfect home is a heart and mind investing process. A million questions arise while choosing among the options, like the location or size of the house. One of the major issues that a buyer faces is dealing with the brokers and the builders. The lack of transparency and regulation had been a major concern among buyers. This was finally sorted out in 2016 when the RERA Act came into the picture. RERA or Real Estate (Regulation & Development) Act came into force on 1st May 2016. The purpose of this act was to regulate the Real Estate sector and create more transparency. Having this act into account is a huge plus point for a buyer since they have transparency and accountability for the property they are interested in. The act not only provides a number of rights for the property buyers but rules and regulations for the builders. 

The question is, what are the benefits of RERA for you as a buyer? How is the Act going to impact you? Let’s talk about the benefits of RERA for property buyers.

  1. Standardization of Carpet Area: The carpet area is the net area that can be used by the buyer, excluding the exterior walls, balcony, open terrace area, etc. Earlier there was no set rule for calculating the carpet area. Different builders used different formulas. Having a standardized formula results in calculating the right cost of the property.
  2. Reduction of Builder’s insolvency or bankruptcy risk: Earlier the builders used to transfer the funds received from one project for the construction of other projects. With the introduction of RERA, the builders are liable to deposit 70% of the proceeds from a project to a separate bank account, which can only be withdrawn during the completion of the project. This way, the home buyers' money stays safe. 
  3. Safety from false commitments: In the cases where the builders make false promises, the buyers are entitled by right to get a full refund for any advances that they have paid.
  4. Advance payments: The builders can take only up to 10 percent of the property’s cost as an advance payment or an application fee, during the time of creating the sale agreement. 
  5. Right to Information: The buyer is allowed to ask as many questions and queries as they wish for about the property. It can be questions about completion status, the material used or plan layout of the project. 

To get a clearer picture of what norms are set by the government for the builders and the buyers, you can visit RERA’s website Here you, as buyers, will understand deeply the guidelines that the government has set for you and the builders.

These were some of the many benefits you will receive if you go for a RERA registered property. With ORO, all your queries will be answered, no false promises might put you down, and most importantly, you will get your dream home hassle-free!