On May 1 2017, RERA (Real Estate Regulation & Development (RERA) was brought into the act turning to be a major game changer in Real Estate. The chief reason behind bringing this act is to streamline the process of home buying and bring complete transparency, which has plagued the real estate industry. From an industry perspective, the act would bring a big relief for long term and increase in FDI. Since the act has come to the role, builders working on current projects will have to apply with the regulatory authority designated in every city within 3 months.
Once the project is registered with RERA, all the details about the project should be uploaded on the respective site along with other certificates required before the project begins.
“Developers could now begin tweaking projects or changing construction plans to get all approvals in place,” says Siddhart Goel, senior director for research services at realty consultancy Cushman & Wakefield India.
For a home buyer, RERA brings a big relief since there were many cases of non-possession of flats, delay in completing the project, and other negative things, which will now change dramatically. However, educating self before buying the flat is important to invest in the right project.
Let us check 10 important things to clear before investing on a flat post-RERA:
Is the Project Registered under RERA?
Before paying the half amount for the purchase of the flat, do check if the project falls under the regulator’s ambit. Registration is mandatory for all commercial and residential projects. Failure to do so, the developer will be liable for a penalty which can go up to 10% of project cost.
Developer with an Established Track Record:
As a buyer, you need to focus on reputed builders having established track record and the project that can feed you a good return in future. Go ahead with investing on a reputed builder for your dream home. A well-known builder will ensure that the project complies with all the guidelines falling under RERA and other real estate guidelines.
Obtaining the Registration of the Project:
Generally, buyers who invest on the apartment before the launch of the project fall under the trap of getting cheated by the developer. Under this act, the promoter has to get the registration of the project for every phase separately.
Financially Stable Developer:
A developer backed with good finance will certainly complete the project on time. However, if the developer doesn’t sound financially good, then the overall execution of the project will be delayed. So do check if the developer is financially well-equipped.
No Super Built-Up Cost:
Check with your builder whether he has included the super built-up area cost in the selling price, if yes, this is against the law. Under RERA, carpet area has been defined in the law.
No Advertisement without Registration:
You need to look if the developer has advertised the project before getting it registered under RERA. If this is the case, then avoid getting deals with the respective developer. Moreover, the advertisement after registering should contain RERA registration number.
Approvals and License:
You must ensure that whether the developer has all the approvals and license to carry out the project. A licensed project is certainly a right project to invest on.
Know the Difference between Super Built-Up and Carpet Area:
While buying the apartment, educate self about the difference between super built-up area and carpet area under RERA. The super built up area includes- lobby, stair case and outer area of the home, whereas the carpet area is the one that falls within the wall. The developer has to charge you for the carpet area, but not for the super built up area.
No Changes in Plan without Written Consent:
The developer should not make any changes in the plan sold without having any written consent. This is generally a popular practice done by developers which has to be put into the picture under RERA.
Check if the Land is under no Dispute:
While finalizing the deal, make sure the land is not under a dispute and the developer has complete control and registration of the residential project. A disputed land can delay the project which would ultimately hurt your finance.