The Real Estate Regulatory Authority (RERA) was established by the central government to strengthen the real estate sector and protect the interest of buyers. The RERA Act, after approval from the Rajya Sabha, was promulgated on 01 May 2016. However, only 52 out of 92 sections were notified. The remaining sections came into existence with effect from 01 May 2017.
The act is intended to regulate the real estate activities and meticulous monitoring of the sector. The Kerala Real Estate Regulatory Authority (K-RERA), the state-level body to comply with the central government directives according to the act, has commenced functioning in early 2020. The client-oriented act empowers the customer/ homebuyer and ensures that every deal is transparent. Consequently, the property developers cannot formulate their own rules or amend the existing policies without the necessary approval from the authority.
What are the Main Objectives of RERA?
The 92 sections in RERA Act confirm comprehensive monitoring of the real estate sector. The main objectives of RERA are:
- Bring transparency in the property deals
- Making the real estate developers accountable for the assurance they made
- Enable quick and fruitful resolution of disputes arising between the developer and buyer
- Deriving a standardized format pan India, which will be useful for people to pursue purchases anywhere in the country
- Enhance the growth of the real estate field
- Cement confidence in the buyers, to promote more sales
- Creating awareness in the buyers regarding the rights
- The regulatory body can enforce an effective conclusion of the agreements
- Establishing a professional approach in the sector. Rather than an irresponsible attitude, which was the case earlier
What are the Benefits of the RERA Act?
RERA empowers the homebuyer phenomenally. He or she can go ahead with a home purchase without any concerns. Even though there are several advantages, we are enlisting the top 5 benefits of RERA for homebuyers.
1. Reliability of the Real Estate Developer
Any individual or firm could start real estate development without much official formality earlier. This had led to fraudulent agencies exploiting the homebuyers. The scenario has been changed with the establishment of RERA. Presently a builder or realtor has to submit the requisite documents including those indicating the financial capacity and details of the projects to RERA. Therefore, a RERA approved builder will be a reliable one.
2. Standardization in Pricing Aspects
RERA Act stipulates specific aspects regarding the pricing of a property. One of the prime factors that decide the price is the carpet area of the home. The cost of the property will be directly proportional to the measured carpet area according to the formulae derived by the authority.
3. Elaborate Documentation for Approval
RERA approval for a project will be issued only after a thorough examination of all the related documents. This will include building plan, approvals, the nature of the land, approved sketches, and schedule of the project and so on. It will obviate legal complications or the possibility of future disputes.
4. Lessening the Possibilities of Incomplete Project Due to any Financial Crisis with the Builder
Real estate developers will be handling several projects simultaneously. They may tend to roll money from one project to another to meet the financial requirements. Nevertheless, with the RERA Act, the builder has to keep at least 70% of the funds in a separate account. Only after prior certification by an approved engineer or CA, the developer can withdraw the money from the subject account.
5. Prevent False Claims
RERA approved property can claim only those specialities that are mentioned in the approved document. It saves the customer from falling prey to false claims.
6. Strictly NO Alterations or Amendments in Plan
The realtor is not authorized to change the plan or make any alterations. Including the fittings and accessories in the home. In case the buyer observes any such thing, he or she can file a complaint and get the resolution at the earliest.
These are some of the important advantages offered by RERA. Besides, the act ensures the buyer’s rights even after the purchase of the house, regulates the penalty in case of delays in the project, and provides a channel for grievance redressal and many more.
OMG Properties’ RERA Approved Projects
Given below are the different projects of OMG Properties approved by RERA:
You may reach out to us in case you require further guidance regarding the RERA Act. And to discuss buying our RERA approved projects at prime locations in Kerala.
Contact OMG Properties now.
