Home buying is one of the crucial decisions in one’s life as it involves a huge amount of money which comprises of years of savings and a home loan. For a common man who is spending his hard-earned money in a residential project, it is important that he makes a sound investment. In order to ensure the same, the government has introduced Real Estate Regulatory Authority (RERA) Act.
Let’s take a glance at the major benefits of RERA for homebuyers as well as investors:
RERA standardized the carpet area
Before RERA, every builder had their own methods and formulas for calculating carpet area and they used to fix prices on the basis of the same. However, after RERA is introduced, every builder is given a standardized formula to calculate the carpet area. RERA defines the carpet area as the net usable area of the apartment or the commercial property, excluding the area of the verandah, balcony, elevator, lobby, and terrace.
Right to Information
RERA entitles the buyer or investor to get all the relevant information related to the property or project they are buying or investing in. They can ask the builder about the execution of the project, plan layout, etc.
Same rate of interest for both the parties in case of default
If the homebuyer or investor delays the payment or the builder delays the possession of the house or property, the rate of interest shall be same for both. Before RERA, the interest rate for the buyer or investor was higher as compared to the builder. However, RERA clearly specifies that the rate of interest for the defaulter will be same.
Benefit to the buyer in case of late possession
RERA gives rights to the buyer or the investor of withdrawing completely from the property or project in the case of late possession of the same by the builder. In this situation, the buyer or investor shall be entitled to a full refund with interest. However, the buyer or investor continues with the property or project, they will be entitled to compensation in addition to the interest until the project is completed.
With the visible benefits of RERA, you are advised to buy only RERA approved projects in Ghaziabad, Meerut, or wherever you are planning to buy a residential or commercial property as RERA protects the interest of the homebuyers and investors.