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5 ways that RERA will help you succeed with real estate investments.

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5 ways that RERA will help you succeed with real estate investments.

  • 29 Jun 2023

The desire to possess a home has always been a pipe dream for many people, and this has led to an overpriced real estate market in India. Real estate costs have been increasing faster than total income levels. There were additional difficulties for the select few who took the risk and invested substantial profits. These difficulties included issues including delayed delivery of ownership, arbitrary alterations to the property's layout, illegal construction, the builder misusing funds, project abandonment, and many others. RERA, on the other hand, is committed to making things right.

1. Your money is used only to build your home

RERA mandates that every builder and developer place at least 70% of the project's cash in an escrow account, which would only be released after the project is finished. This is a smart approach to make sure that a project's funding isn't split among several different ventures that can delay or interrupt the completion of your project.

2. Financial penalties are now bilateral

RERA would oblige the builders to pay the buyer interest for the time that the project was delayed in order to complete it, significantly tightening the deadline adherence. This would discourage the builders from purposefully delaying the project's completion and the transfer of possession.

3. You get what you pay for

RERA requires that all project plans, layouts, and proposals be submitted to the RERA authority, and it forbids the builder from altering the project without the express written approval of all the concerned customers. This makes sure that no portion of your land is altered to the benefit of the builders and that you get the project you requested.

4. No more misrepresentation

It is suggested to outlaw the use of ambiguous phrases like "built-up area" and "super built-up area" to depict an area as being larger than it actually is. According to the RERA, the only criterion used to determine the total space given is "carpet area". This makes the process of learning easier and guarantees that the customer is aware of the actual real estate that is usable.

5. You will now know about the land ownership

Land title digitization is anticipated to be implemented as part of RERA, which would necessitate collecting the history of the land title and turning it into a registration number. This will guarantee that all land titles are accurately recorded and can be confirmed via a quick register search. The owner receives a land title certificate after the land title is digitalized and linked to an ID. Less land disputes will result from this, and you can easily verify to see if the project you're funding is legitimate.

We anticipate that the Government's robust approach will encourage investor sentiment and purge the market of questionable developers. We see RERA as a catalyst for the transition from a dubious and opaque sector to a disciplined and effective industry. The price of real estate is anticipated to continue rising despite the fact that investors can now safely seek to develop their homes as the act is anticipated to spur confidence-driven demand.

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