How RERA is protecting your investment?
For a long period of time, the real estate sector was unregulated and working maximum in favor of builders and developers. From getting delayed possession to breaching contracts to bearing a huge loss of project cancellation, all have to be borne by home buyers. Homebuyers were facing these malpractices, if a home buyer files a complaint, it used to take years to get a verdict. To eliminate these issues and establish transparent transactions between buyers and builders, the government brought the Real Estate Regulatory Act (RERA) into force.
To protect the interests of the home buyers, RERA came into force. The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which has been drafted with an objective to protect home-buyers’ rights as well as help boost investments in the real estate industry. The Act came into force from 1 May 2016.
The main objective of the act is to create a more equitable and fair transaction between sellers and buyers of properties. This Real Estate Act is anticipated to ensure that consumers will not be cheated or taken for a ride by the developers.
As per the RERA guidelines, in case of a mismatch in the commitments made by the builder and the actual project, the buyer has all the right 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.
Also, in case of any structural damage or any defect in craftsmanship, quality, provision, or service discovered within 5 years after the possession of the property, RERA instructs the builder to rectify the same at no extra cost within 30 days. If the builder fails to do so, the buyer shall be entitled to claim compensation for the same.
RERA safeguards the interests of homebuyers and is a huge step forward against ill developers. But after RERA also, it is always your responsibility to be alert and get into any contract after making proper research.