How RERA Makes My Investments Safe!
Real Estate Regulation and Development Act is a real boon for the realty investments. There are multiple benefits for the buyers out of which the major ones are discussed below:
- Regulatory Authority: RERA proves to be a legal authority to handle investors’ grievances and help them get justice. This act will ensure transparency and efficiency in project dealings.
- Registration: Every developer has to mandatorily register their projects with RERA giving out detailed information before they can advertise about the project. This makes every builder legally liable for any misrepresentation or alteration with the project at a later stage.
- Funds: Developers are now obliged to keep 70% of the project funds in a separate reserve account dedicated to the projects instead of diverting them to other business ventures. This way the projects will not be delayed due to non-availability of funds.
- Disclosures: RERA ensures that developers update the progress of a project on a continuous basis so that buyers are aware. This enhances transparency and keeps an investor in the loop during all times.
- Sale Agreements: All agreements will now be following a standardised format to ensure perfect balance of terms and conditions between developers and buyers/investors.
- Penalties: RERA has provision for strict financial penalties and even prison terms for those violating norms. It would help the investors to make developers accountable for their commitments.
- Land Titles: This is yet another important aspect where developers have to make a positive warranty on their claim to ownership of land titles and interest on the land to avoid any future disputes.
RERA is formed for the benefit of the investors and one should study it to know their rights before making any investments.