RERA language is now widely used in the real estate industry. In truth, builders advertise with their RERA registration number. What is RERA, and why is it so effective? Let's verify.
Real estate regulatory and development act, or RERA, is a law that was adopted by the federal government in 2016 and went into effect in May 2017. RERA was enacted to control the fraud that was becoming more prevalent every day in the real estate industry. It aims to promote real estate purchase accountability and transparency.
RERA is thus having an effect on builders in the real estate industry.
In accordance with RERA guidelines:
Any proposed developments with an area larger than 500 square feet or eight apartments must register with their individual state's RERA.
Builders are required to deposit 70% of the funds received from the buyer by check in the bank.
On the RERA website, the builder is required to provide updates on the project's status.
If a builder is not registered with RERA, they cannot showcase or advertise their project.
How does RERA actually benefit homebuyers?
RERA assures homebuyers of the following:
Buyers may leave the project and receive full compensation from the builder if the builder does not deliver the house by the specified deadline. If you decide not to back out, the builder must be paid with interest each month until possession.
RERA gives buyers the authority to inquire about the actions taken and project development from the developers.
All agreements between the builder and the homebuyer will be based on the model sale agreement that has been approved by RERA to prevent fraud.
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