7 Effects Real Estate Buyers Should Know About
RERA Act 2017: The Real Estate Regulatory Act (RERA) will be implemented on May 1. It’s been a long wait since 2016. When it was passed, RERA promised to bring a huge change in the real estate industry. A few days from now, we’ll see the RERA effects as a mixed bag of advantages and disadvantages for real estate buyers. We’ve listed what you should look forward to, and what might bring your hopes down in this innovative Bill.
What you should look forward to:
- No lag in delivery of flats
The RERA Act 2017 will ensure that developers deliver flats at the promised date. Failing to do so will incur them with a heavy penalty. The developers will have to refund the buyers along with the interest. Developers will not be able to make false promises about the project completion and will have to keep the buyers informed about the progress.
- Furnishing incorrect details will be penalized
In a bid to attract customers, many builders end up mentioning amenities that are too unrealistic or costly to be promised. Furnishing correct details of the project is now mandatory for real estate developers. RERA act will penalize developers with 10% of the project’s cost or 3-year jail detention if they make fake promises.
- Carpet area specification
Builders will have to calculate the flat cost, based on the carpet area instead of built-in area. The built in are accounts 20-30 per cent more of the basic flat area. Real estate developers will have to mention the carpet area mandatorily.
- Post sales services
When your property exhibits structural problems, you can use the RERA act to make the builders fix the deficiency. However, this is only applicable within 1 year of the purchase.
Things that will lower your expectations:
- Incomplete projects not included in RERA
The RERA Act Bill includes only new projects. Ongoing projects that are under the hammer due to financial issues and irregularities are not covered under it. If you happen to buy such a property, tough luck!
- Inconsistent government bureaus
Red tape can cause a lot of delays to clear projects. RERA Act will create a lot of work traffic. Officials will be overwhelmed with various issues that will end up creating hindrances in passing projects.
- Brand new projects might be delayed
Brand new real estate projects will have to spend time to get the necessary clearances. This will automatically delay the new projects.
Want to add another point to this roster of RERA Act 2017? Let us know!
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