Vinayak Realtech

Real estate is not just an industry but a factory of building dreams. It turns dreams into reality and deals with clients’ hard-earned money. Thus, the industry has a significant impact on people and society. Previously, due to numerous companies and red tape, transparency in this industry was lacking. Naturally, it was harming the buyers. To prevent this, the government introduced the Real Estate Regulatory Authority (RERA) Act on the 1st of May 2017. The act aimed to protect buyers’ interests in the real estate sector and establish an arbitrating mechanism for speedy dispute redressal. Now, if you are still not clear about why you should go only for Rera-registered projects, read this blog diligently.

Let’s start!

1. Rera registered projects: Increased Transparency

For a long time, transparency was an issue in the real estate sector. Upstart builders avoided submitting their plans, which caused an unnatural delay in project handover. It was causing huge distress to the buyers. However, Rera registered projects have made it a past.

Currently, they must disclose details like project plans, layout, timeline, and all legal permissions. All this data further empowers buyers while building trust in the project.

Additionally, they abide by the law to provide timely, accurate, and comprehensive information about the project so the buyers can make an informed decision while purchasing any property.

We are proud to inform you that every project of Vinayak Realtech is RERA-approved. Additionally, we don’t refuse to a single question of our buyers or potential buyers. It helps our buyers to make more informed decisions and contribute to a transparent business.

2. Rera registered projects: Carpet Area Calculation

The carpet area is the area inside your apartment. It means the core area you live in. It doesn’t include areas like parking, elevator, etc.

Before Rera registered projects, many dishonest builders included the common spaces in the carpet area to increase the price. To escape buyers’ questions, they used loops of the law.

To stop this, RERA has standardized a nationwide measurement of carpet area on which real estate developers can sell properties. It denotes the actual usable area within walls rather than the space before finalizing the whole layout. Additionally, due to this law, now the builder can’t charge for balconies separately. It comes within the in-built carpet area.

The RERA has ensured that the measurement of carpet area remains the same throughout the country. It has helped the buyers across the regions.

3. Rera registered projects: Delivery Timing

One of the biggest impacts RERA has had on the real estate industry is strictly enforcing the project delivery timeline for developers to help buyers set realistic expectations for the possession of the property.

Previously, some dishonest builders were making intentional delays in delivering projects and it was causing a huge distress among the buyers. They were forced to pay extra rent (those who don’t have extra homes) and faced mental stress, too.

However, it is a past now. Currently, the builders need to clearly inform their expected delivery date and need to follow that seriously. If they make any delay in this, they must pay compensation to the buyers so that they don’t face any burnout. It is forcing the realtors to follow their deadlines.

4. No False Adverts and Mandatory Consent

Before Rera registered projects, one of the biggest issues was fake adverts or promises. For example, many builders kept promising to provide a certain type of elevator or a specific amenity (swimming pool, jacuzzi, etc) and lastly, they would deny all the claims. The buyer was forced to accept this because they had already paid the price and wanted the position as early as possible.

However, currently, it is impossible. Now, all the information included in the promotional material must be accurate and recorded with RERA to prevent customers from being victims of misleading advertisements.

Be it the actual living space in the property or other amenities; the builder must provide things they have promised. It ensures that the buyers are getting the exact things they have paid for.

While ensuring the ideal deliverables, the RERA law also ensures that the buyers get their deserved freedom and respect. Under RERA, developers cannot make any changes, alterations, or modifications to the property plan on a whim. They must have consent from the buyers.

It helps the buyers to know about the changes the builder is making to layout or other things. It is because these changes control the functionality and life conveniences.

5. Enhanced Accountability and Money Security

As stated, making a home can’t be a regular type of business. It deals with the dreams of buyers, their hard-earned money, lifetime savings, and their life safety. Therefore, accountability is one of the most important things in the industry.

Rera registered projects has ensured that the builders take responsibility for any structural defect that takes place on the property for up to five years from the date of handing over possession. Additionally, it will have to be repaired by the developer. It shall be the duty of the promoter to rectify such defects within 30 days without further charge.

To ensure the future of the buyer’s money, the RERA ensured that the realtor can’t use the funds of a project in different projects. According to the law, the developer will be required to transfer 70% of the money received from buyers to an escrow account. After that, the fund will be withdrawn as per the stage of the construction. Also, the withdrawal must be approved by engineers and chartered accountants of builders.

The main reason for adding this clause is to avoid project handover delay. Data have shown that almost all projects launched between 2010 and 2013 had defaulted their delivery time primarily because funds were diverted to new projects by the builders. However, the new clauses have banned this successfully and ensured the highest money safety, ever.

FAQs: Rera registered projects

How can I know that a project is a Rera-registered project?

You can ask the builder directly about their RERA registration, number, and all the documents related to it. If the builder fails to show all these documents or answer the queries; do not buy the property.

How do Rera registered projects empower me as a buyer?

Rera registered projects provide you the legal validation. If you face any dispute in a RERA-approved project, you will be able to get legal help without fighting a lengthy battle.

Are the Rera registered projects expensive?

Sadly, yes, Rera-registered projects can be expensive. This is because the RERA has increased the construction cost. It has introduced strict laws and escrow accounts. Thus, the builder might charge extra for this kind of project.

Wrapping Up

RERA is a boon for the home buyers. With enhanced security, accountability, and perfect delivery timing, it is contributing transparent real estate industry. Well, it is true that the RERA-approved projects might charge you extra, however, do not try to avoid these charges.

If you are looking for RERA-approved top-notch property, connect with us at any time.