How does the RERA Act protect the rights of home buyers?
Curious about RERA Act
The Real Estate (Regulation and Development) Act (RERA) aims to protect the rights and interests of home buyers in several ways. Here are some key provisions of the RERA Act that safeguard the rights of home buyers:
1. Mandatory Registration: RERA mandates that developers must register their real estate projects with the respective state's Real Estate Regulatory Authority (RERA) before advertising, marketing, or selling them. This registration ensures that the project meets certain standards, including necessary approvals and financial soundness, providing assurance to home buyers.
2. Transparency and Disclosures: RERA promotes transparency by requiring developers to provide comprehensive information about their projects. This includes details about the project, land status, layout plans, approvals, timeline for completion, and other relevant information. Such disclosures enable buyers to make informed decisions and protect them from misleading or false representations.
3. Carpet Area Definition: RERA mandates that the sale of real estate properties should be based on the carpet area, which is the usable area within the walls of a unit. This ensures transparency in property measurement and helps buyers accurately assess the size and value of the property they are purchasing.
4. Consent of Home Buyers: RERA mandates that developers cannot make any changes to the project plans, design, and specifications without obtaining the prior consent of the majority of home buyers. This provision protects buyers from arbitrary changes to the project that may negatively impact their interests.
5. Timely Project Completion: RERA emphasizes timely completion of real estate projects. Developers are required to adhere to the declared timeline for project completion, and any delays beyond the specified grace period can result in penalties and compensation to the buyers. This provision protects buyers from prolonged project delays and ensures timely possession of their properties.
6. Escrow Account and Fund Management: RERA requires developers to deposit a specified percentage of funds collected from buyers into a separate escrow account. This provision prevents diversion of funds to other projects and ensures that the funds are utilized only for the specific project for which they were collected. It protects the financial interests of home buyers and minimizes the risk of fund mismanagement.
7. Structural Defect Liability: Developers are responsible for addressing any structural defects in the project for a specified period after possession. RERA ensures that developers rectify such defects at no additional cost to the buyers, thereby safeguarding their rights and interests.
8. Grievance Redressal: RERA establishes a mechanism for the resolution of disputes between buyers and developers. It mandates the creation of a Real Estate Appellate Tribunal and provides for the timely resolution of grievances. This provision empowers home buyers to seek redressal for any issues or disputes they may face during the transaction or possession of the property.
By enforcing these provisions, the RERA Act ensures transparency, accountability, and fairness in real estate transactions, thereby protecting the rights of home buyers and promoting a more balanced and equitable relationship between buyers and developers.