The Real Estate (Regulation and Development) Act, 2016 (RERA) has been a game-changer in the Indian real estate sector. Enacted to bring transparency, accountability, and efficiency into the real estate market, RERA has redefined the way real estate transactions take place in the country. in this blog Let’s look into the top 10 benefits of RERA registration that shed light on its significance.

RERA _ Real Estate Regulatory Authority

What Is the Meaning of RERA?

The Real Estate Regulatory Authority, known as RERA, was established as per the Real Estate (Regulation and Development) Act, 2016, aiming to bring transparency to the real estate industry and address the existing discrepancies and issues within it. Buyers are empowered by RERA with the right to access every crucial detail of the real estate project they intend to invest in.

10 Benefits of RERA Registration

 10 Benefits of Rera Registration

Enhanced Transparency

Benefits of RERA Registration: One of the most significant advantages of RERA registration is the heightened transparency it brings to the real estate market. Developers must dish out the full scoop on their digs—like legit layouts and timelines stamped by RERA—to keep buyers in the know before they drop some serious cash.

Standardized Carpet Area Calculation

Under Benefits of RERA Registration, developers must adhere to a standardized method for calculating the carpet area, ensuring consistency across projects. With RERA’s strict rules, you only pay for the space you’re actually getting – no more guesswork or unfair charges.
The standardized carpet area calculation under RERA involves determining the net usable floor area within the walls of an apartment, excluding the thickness of the walls. It’s computed by multiplying the length and breadth of each room and then summing up these individual areas.

For instance, consider a rectangular room with a length of 10 feet and a width of 8 feet:
Area of the room = Length × Width = 10 feet × 8 feet = 80 square feet

If there are multiple rooms in an apartment, the carpet area is calculated by adding up the areas of all individual rooms.

Promptness in Project Delivery

Benefits of RERA Registration sets strict guidelines for project completion timelines. Developers are obligated to adhere to these timelines and deliver projects within the stipulated timeframe, reducing delays and providing buyers with the assurance of timely possession of their properties, a key aspect of RERA-registered projects.
Benefits of RERA Registration in Promptness in Project Delivery are:
1. Strict Timelines

Rera enforces stringent deadlines for project completion, ensuring developers adhere to predefined schedules.

2. Penalties for Delays
Developers face consequences for project delays, fostering a sense of urgency to meet deadlines.
3. Buyer Assurance
Buyers are assured of timely possession, minimizing uncertainties and instilling confidence in project delivery timelines.
4. Enhanced Market Credibility
Adherence to project timelines elevates the reputation of developers and projects in the market, attracting more buyers and investments.

Establishing Escrow Account

Another significant benefit of RERA registration is the requirement for developers to deposit a percentage of project funds into an escrow account. By requiring developers to bank a chunk of the project’s cash in an escrow account, the Benefits of RERA Registration makes sure that money is spent right where it should be: on building what buyers have paid for, and this really boosts the system’s financial honesty.

Eliminating False Advertising

Benefits of RERA Registration mandates developers to provide accurate and truthful information about their projects, prohibiting misleading advertisements. RERA’s requirements for truthful advertising build trust between developers and homebuyers.
Tips to eliminate false advertising is one of the Benefits of RERA Registration that includes:
  • Displaying the RERA number in all promotional materials
  • Providing clear and accurate information about the project’s status
  • Avoiding exaggerated claims about amenities or project features

Expediting Grievance Redressal

The RERA Act facilitates a streamlined mechanism for addressing buyer grievances. With the establishment of RERA complaint cells and authorities, buyers can seek quick and effective resolutions to their concerns, promoting a fair and transparent dispute resolution process.

Structural Defect Liability

Developers are held accountable for any structural defects or deficiencies in construction for a specified period under RERA regulations. With this provision in place, buyers can breathe easy knowing they’re shielded from serious structural flaws in any RERA-backed property.
Here are the benefits of rera registration in the Structural Defect Liability under RERA:
1. Defined Period
Developers hold liability for structural defects within the property for a specified period after the possession date.
2. Coverage of Defects
The liability encompasses any significant flaws or deficiencies in the structure, workmanship, quality, or materials used in construction.
3. Developer's Responsibility
It is the developer’s responsibility to rectify such defects within a stipulated time frame, without imposing any additional cost on the homebuyer.
4. Protection for Buyers
This clause shields buyers from bearing the financial burden of fixing structural flaws post-handover, ensuring quality assurance in RERA-approved projects.

Mandatory Consent for Any Changes

Under RERA regulations, it is mandated that explicit consent from homebuyers must be sought before any modifications, alterations, or changes in the original project plan are implemented by developers.
The interests of buyers are safeguarded and transparency is ensured by this pivotal provision, granting them a say in any modifications that might impact the property in which they have invested.
The emphasis on the significance of obtaining RERA approval for plots and developments is aimed at maintaining fairness and transparency throughout the real estate transaction process

Clarity of Carpet Area Pricing:

With standardized RERA-approved methods for calculating carpet areas, buyers can make informed decisions based on accurate pricing. Clear pricing levels the playing field, letting buyers know exactly what they’re getting for their money.

Right to Information

Buyers have the RERA-endorsed right to access comprehensive project details, including RERA project details and certifications. Armed with this info, buyers can confidently navigate their investment choices in the RERA-sanctioned property landscape. This empowerment through Rera license cost information fosters informed decision-making.

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1. How Long Does It Take To Get RERA Approval ?

The time taken for RERA approval can vary based on the project’s specifics, but typically, it ranges from 30-60 days, depending on compliance and documentation.

2. Should I Buy a Property if It Is Not Registered in RERA ?

It’s advisable to avoid purchasing a property that isn’t registered under RERA, as registration ensures transparency, legal protection, and adherence to norms.

3. What Projects Can Be Exempted From the Under RERA ?

Certain smaller projects with an area of less than 500 square meters or those with less than eight apartments may be exempted from RERA registration in some states.

4. What Are the Advantages of RERA Registration

The time taken for RERA approval can vary based on the project’s specifics, but typically, it ranges from 30-60 days, depending on compliance and documentation.

5. Is RERA Mandatory in India ?

Yes, RERA is mandatory for real estate projects that meet the specified criteria in terms of size and number of units, ensuring regulatory compliance and buyer protection

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