Top 10 Rera Benefits for Home Buyers
Top 10 Rera Benefits for Home Buyers
The Real Estate Regulatory Authority (RERA) Act has had a game-changing impact on Chennai’s real estate scene. The implementation of RERA has really helped increase the confidence of a consumer. We shall look in to the top 10 RERA benefits for home buyers. It has made the system more transparent and accountable for real estate buyers.
Let’s Understand How Rera Benefits Home Buyers
It’s now easier than ever to invest in a property such as luxury apartments in Chennai, thanks to Understanding RERA advantages.
Standardized Carpet Area
With RERA, gone are the days when best builders in Chennai could manipulate the area definitions. The provision of standardized carpet area calculation puts an end to the ambiguity by providing uniformity in the method of calculating the carpet area. Whether one opts for a 2 bhk apartments in Chennai or a bigger segment, they can be assured that they’re getting what they paid for.
Additionally, RERA compliance for property buyers ensures that all builders and developers in Chennai follow the same rules and regulations when it comes to calculating the carpet area, making the real estate sector significantly more transparent.
Rate of Interest on Default
One of the biggest RERA benefits for home investments is the introduction of a fair interest rate for both, the buyer and the seller. This allows both parties to be on an equal footing, adding a layer of financial safety for the home buyers.
Reduces the Risk of Builder Insolvency or Bankruptcy
RERA reduces the risk of builder bankruptcy or insolvency by mandating developers to deposit 70% of the collections from customers in a separate trust account which is used for that particular project.
Advance Payment
Gone are the days when builders in Chennai could demand large advance payments from buyers. Homebuyer protections under RERA now limit the amount of advance payment to 10% of the cost of the apartment, flat or building. This is a notable benefit that greatly reduces the financial risk for home buyers.
Right of the Buyer in Case of False Promises
If any of the top residential builders in Chennai fail to adhere to their sales agreement, RERA ensures that the buyer is compensated. This brings more trust into the property transactions and further boosts buyer confidence.
If you are curious about learning more about Real Estate Investment, please take a moment to read this blog. – ‘’What is Undivided Share and How to Calculate UDS?’’
Right of the Buyer in Case of Defect After Possession
Another major RERA and homebuyer right is the provision of a defect liability period of five years. If the buyer finds any structural or workmanship defects within five years of taking possession, the builder is liable to fix the defects without the buyer incurring any additional charges.
Rights of the Buyer Delay in Possession
RERA also guarantees compensation to the buyer in case of any delays in property handover. This ensures that the builders and developers complete their real estate projects on time, significantly benefitting the real estate market in Chennai.
Rights of the Buyer in Case of Defect in Title
RERA offers clear and secure property titles. In case of any defect in the title of the property, real estate builders in Chennai are held liable to compensate the buyer.
Right to Information
Under RERA, builders in Chennai have to provide accurate and timely information about their projects. Home buyers have the benefit of receiving regular updates about the project’s progress, including plans layout, completion status, etc.
Establishment of Authority for Grievance Redressal
RERA has established a fast-tracked dispute resolution mechanism through an Appellate Tribunal. This offers speedy and effective redressal of buyer grievances.
Undeniably, RERA has brought a breath of fresh air to the real estate industry, particularly in favor of the buyer’s rights. Real estate in Chennai, with its diverse offerings from 2 BHK apartment to luxury apartments, is now more secure, transparent, and inviting for property buyers. As prospective home buyers, it is importantto be aware of the changes and benefit from them.
FAQs:
RERA significantly enhances transparency in the sector, standardizes business practices, and empowers home buyers. This includes a standardized carpet area, reduced risk of builder insolvency, and a mechanism for speedy dispute resolution amongst others.
Yes, one of the many RERA protections for home buyers is that if the project is delayed, the home buyer is entitled to compensation.
Yes, RERA ensures that the developers use at least 70% of the sales proceed into the project they earned it from, thus safeguarding the buyers’ money.
Potential buyers can visit the official RERA website of their respective states to verify if a project is registered.
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