The Government of India passed the RERA or the Real Estate Regulatory Authority Act in 2016 and made RERA registration compulsory for real estate developers and agents. The RERA benefits include improving transparency in the real estate transactions in India, simplifying and streamlining the buying process for homebuyers and tackling the major issues in the sector. Following the passing of the central Act, multiple states and union territories brought in the state-level Act, such as the MahaRERA
What is MahaRERA Act?
The Government of Maharashtra set up the Maharashtra Real Estate Regulatory Authority or the MahaRERA in 2017 under the central Real Estate (Regulation and Development) Act of 2016
Benefits of the MahaRERA Act for Homebuyers
- One of the most important RERA benefits is the standardisation of the definition and calculation of the carpet area. This brings in uniformity and eliminates any fraudulent manipulation by the builders.
- The MahaRERA Act applies a uniform interest rate for both homebuyers and builders in case of default of payment by the former or delay in completion/possession by the latter.
- Another RERA benefit is the mandatory deposit of 70% of the amount raised for a project in a separate, dedicated bank account which can only be withdrawn for project completion. This ensures that the money raised is used only for project completion and reduces the risk of builder insolvency and bankruptcy.
- The advance payment cannot exceed 10% of the total cost of the property before the signing of the Sale Agreement.
- If within 5 years from the possession, the homebuyer detects any structural damage or defects in the service, the builder has to rectify the defect within 30 days or pay compensation to the buyer.
- In case of delays in completion/possession of the property, the homebuyer has two options:
- Withdraw from the project and receive a complete refund of any paid amount.
- Wait for the completion and get compensation in the form of interest charged from the predecided due date to the actual project completion date.
- If the homebuyer detects any issues with the title of the property at any time after possession, they can claim compensation from the builder.
- Under the RERA benefits, the homebuyer has a right to any information about the property at any stage of the construction.
- The homebuyer is entitled to file a complaint against the builder with the established authority for grievance redressal under the MahaRERA .
Thus, the RERA in general and the MahaRERA , in particular, offer several benefits to homebuyers. To avail of the RERA benefits, it is mandatory that builders, developers, promoters and agents promote and sell only MahaRERA registered projects. Buyers are encouraged to buy a property only after checking and verifying the MahaRERA project details on the state’s RERA website.
What is the RERA Act?
The Real Estate (Regulation and Development) Act or the RERA of 2016 is a central Act that aims to regularise the real estate market in India and encourage and establish an efficient, healthy, transparent and competitive real estate sector that protects the rights of homebuyers and developers, agents and promoters.
What is RERA approved?
Under the Act, all builders and project developers are legally bound to upload the relevant approvals on their respective state’s RERA website for registration of the project. If all the guidelines are satisfied, a registration number allotted to the project makes it RERA approved.
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