The Mumbai property scenario has always been booming, but due to some unscrupulous brokers and developers, those looking for homes have faced hassles for a long time. They used to take advantage of loopholes in housing laws to harass home buyers, who had no choice but to accept the situation.
But now, thanks to the Real Estate Regulations Act (RERA), the entire process of purchasing a home has been streamlined for customers. At the same time, an organized, accountable structure has been set in place for real estate consultants and buyers. At the forefront of this is Edelweiss Home Search, an initiative by the reputed finance and banking MNC giant, making the real estate buying and selling procedure simpler for customers and brokers, while making it accountable through a dedicated RERA number, removing all chances of exploitation and misguidance that can discourage and dissuade the home buyer. So, let us now look at the advantages the RERA act holds for customers:
1) Standardized carpet area: Earlier the carpet area was defined on the builder’s whims and had their own method of calculation, which left the customer to the builder’s mercy. But now, thanks to the RERA Act, this is standardized for all developers and builders, and the carpet area cannot be inflated and manipulated by builders any longer.
2) Equal rates of interest on defaulting: The RERA Act has made interest on defaulting in payment equal for both buyer and builder now, be it delay in completion of the project or delay in payment of instalment by the buyer.
3) Reduces risk of builder bankruptcy: This clause of the act protects the builder from insolvency/bankruptcy, as a developer usually has several projects being constructed simultaneously, and they used funds from one project for the construction of another. However, this is no longer possible, as the builder is required to deposit 70% of the money raised from a project into a separate bank account, which can be withdrawn only for the completion of the project, and which requires certification by a civil engineer, architect and chartered accountant. This will prevent builders who misuse the funds for another project from becoming bankrupt, and will ensure timely and assured completion of the project.
4) Prevention of false promises: If a buyer finds any discrepancy between the commitments made by the builder and the actual project, he can withdraw from the project and is entitled to a full refund of the amount paid as advance, or with interest and claim compensation.
5) Limited Advance Payment: Not more than 10% of the cost of the bought project etc., can be taken as advance or application fees by the builder, before entering into an agreement of sale.
6) Claim of defect post possession: If the buyer discovers any structural defect or defect in workmanship quality, within 5 years of possessing the apartment, said defect has to be rectified by the builder within 30 days at no cost to the buyer. If the builder fails to keep up this commitment, the buyer is entitled to claim full compensation for it.
7) Rights of the buyer in case of delay: If the builder fails to complete the project on the due date, he can either withdraw from the project and be entitled to full refund, or can continue with the project and receive compensation with interest payable from the due date of completion.
8) Compensation in case of defect in title: If the buyer finds any defect in the title of the property, then compensation can be claimed from the builder, and there is no time limit set on this clause.
9) Right to information: The buyer at any time has the right to know any information related to the project, be it the plan layout, execution plan, completion status etc.
10) Grievance Redressal Committee: In case of any grievance against the builder, it can be taken to the state authority set up under RERA, which has the power to address any grievance. If you are not in acceptance of the redressal, you can file an appeal with the Appellate Tribunal, who will hear your case in 60 days, and in case of failure, it shall record the reasons of failure. The builder will have to deposit minimum 30% of the penalty, if they want to appeal to the Appellate Tribunal against the committee, or total amount to be paid as compensation to the home buyer with interest.
These factors have given more rights to the home buyer, and helped them ease the home buying process, which is being implemented by real estate consultants like Edelweiss Home Search, which have also helped the builder against bankruptcy and spurious brokers.
But now, thanks to the Real Estate Regulations Act (RERA), the entire process of purchasing a home has been streamlined for customers. At the same time, an organized, accountable structure has been set in place for real estate consultants and buyers. At the forefront of this is Edelweiss Home Search, an initiative by the reputed finance and banking MNC giant, making the real estate buying and selling procedure simpler for customers and brokers, while making it accountable through a dedicated RERA number, removing all chances of exploitation and misguidance that can discourage and dissuade the home buyer. So, let us now look at the advantages the RERA act holds for customers:
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| Real Estate Regulations Act |
1) Standardized carpet area: Earlier the carpet area was defined on the builder’s whims and had their own method of calculation, which left the customer to the builder’s mercy. But now, thanks to the RERA Act, this is standardized for all developers and builders, and the carpet area cannot be inflated and manipulated by builders any longer.
2) Equal rates of interest on defaulting: The RERA Act has made interest on defaulting in payment equal for both buyer and builder now, be it delay in completion of the project or delay in payment of instalment by the buyer.
3) Reduces risk of builder bankruptcy: This clause of the act protects the builder from insolvency/bankruptcy, as a developer usually has several projects being constructed simultaneously, and they used funds from one project for the construction of another. However, this is no longer possible, as the builder is required to deposit 70% of the money raised from a project into a separate bank account, which can be withdrawn only for the completion of the project, and which requires certification by a civil engineer, architect and chartered accountant. This will prevent builders who misuse the funds for another project from becoming bankrupt, and will ensure timely and assured completion of the project.
4) Prevention of false promises: If a buyer finds any discrepancy between the commitments made by the builder and the actual project, he can withdraw from the project and is entitled to a full refund of the amount paid as advance, or with interest and claim compensation.
5) Limited Advance Payment: Not more than 10% of the cost of the bought project etc., can be taken as advance or application fees by the builder, before entering into an agreement of sale.
6) Claim of defect post possession: If the buyer discovers any structural defect or defect in workmanship quality, within 5 years of possessing the apartment, said defect has to be rectified by the builder within 30 days at no cost to the buyer. If the builder fails to keep up this commitment, the buyer is entitled to claim full compensation for it.
7) Rights of the buyer in case of delay: If the builder fails to complete the project on the due date, he can either withdraw from the project and be entitled to full refund, or can continue with the project and receive compensation with interest payable from the due date of completion.
8) Compensation in case of defect in title: If the buyer finds any defect in the title of the property, then compensation can be claimed from the builder, and there is no time limit set on this clause.
9) Right to information: The buyer at any time has the right to know any information related to the project, be it the plan layout, execution plan, completion status etc.
10) Grievance Redressal Committee: In case of any grievance against the builder, it can be taken to the state authority set up under RERA, which has the power to address any grievance. If you are not in acceptance of the redressal, you can file an appeal with the Appellate Tribunal, who will hear your case in 60 days, and in case of failure, it shall record the reasons of failure. The builder will have to deposit minimum 30% of the penalty, if they want to appeal to the Appellate Tribunal against the committee, or total amount to be paid as compensation to the home buyer with interest.
These factors have given more rights to the home buyer, and helped them ease the home buying process, which is being implemented by real estate consultants like Edelweiss Home Search, which have also helped the builder against bankruptcy and spurious brokers.
