What is RERA Approved Property, and Why Is It Required?

With time, the real estate industry has become a more competitive industry in India. A major reason behind this can be various developers offering people an opportunity to own their dream home. However, it has also been seen that some developers have started taking advantage of this situation, and there is also a major gap between delivery and promise. So, to regulate this market and eliminate such issues, the Government of India in 2016, introduced the RERA or Real Estate Regulator Act. If you are thinking of buying a house, always ensure that the property is RERA-approved to avoid any issues in the future. Keep reading to explore more about this and understand why RERA-approved properties are a wise choice.

What Do You Mean by the RERA Act?

The RERA Act was introduced to ensure property protection, transparency as well as accountability for every home buyer. It has played a crucial role in protecting home buyers' rights and maintains 100 percent transparent processes during your buying journey. It has created a unified legal framework for buying apartments, flats, and other types of properties.

It may be noted that The RERA Act may be different from one state to another to effectively address the construction requirements in different states. However, the primary objectives are the same. Every property developer or builder should register themselves and adhere to the guidelines mentioned in this act to create and promote their projects.  

Some Crucial Points of The RERA Act

Transparency

Before starting to work on any projects, builders need to submit the required documents. Besides, they are now allowed to change the plans or design without proper approval from buyers.

Maximum Level of Security

As per the RERA Act, around 70 percent of investors' or buyers' money will be kept aside in a separate account called an Escrow Account. The money will be given to developers for the construction of the project. They can't use that amount for other purposes. Furthermore, developers are now allowed to ask for above 10 percent of the cost of the property in advance. This helps in eliminating the risk of diversion of money. Besides, it helps you ensure on-time completion of the project.

Better Fairness

As per the Act, builders can only consider the carpet area size while selling apartments or other properties. They can't consider the super built-up area. This helps prevent home buyers from paying charges for common areas and balconies. So, you can buy profitable properties as per your needs. What's more? If there is a delay in the project, you can ask for a refund of your investment money.

Project's Structural Fault Liability

If any property develops structural damages, developers will be held accountable for that. RERA has the right to carefully observe proprieties for a certain time period after their completion. It can also order developers to fix structural damages as soon as possible to protect buyers from spending on such repairs. As per the rules, property developers should resolve issues within five years of purchase.

Strict Authorization Rules

A builder can't build, sell, advertise, or invest in properties without getting themselves registered with the RERA. Upon registration, developers will get a unique registration number for their advertisements. Besides, they should mention all the important facts and information in the advertisement to help buyers make informed decisions.

Conclusion

RERA-approved properties are the safest real estate investment option for homebuyers. This approval ensures the highest quality, better protection, and transparency. Buying RERA-approved properties means you are getting homes that meet the required standards. So, are you ready to make your first real estate investment? Find the best RERA-approved properties in Bhubaneswar with Real Estate Odisha.