What is RERA in Real Estate and what are its benefits?

Today, women are not only making a house into a home but also confidently stepping up and buying their own houses. However, buying a home is a huge decision involving your hard-earned money. That’s why it’s crucial to know the rules that protect your rights as a home buyer. One of the most important things you should know about while buying a home is RERA,  a law made just for homebuyers like you to make your home-buying journey safer and more transparent. 

So, in this blog, we’ll understand what is RERA and what are RERA benefits,

What is RERA?

RERA stands for Real Estate Regulatory Authority. The Government introduced it to bring transparency, efficiency, and accountability to the real estate sector. Before RERA, many homebuyers used to face delays, hidden charges, and even fraud by builders. Now, thanks to RERA, there are strict rules to ensure homebuyers get what they are promised.

What are RERA Benefits?

1. No Project Delays:

Builders must register their projects under RERA and provide a completion timeline. If they delay, they will have to compensate the buyers!

2. Transparency in Pricing:

With RERA, you only pay for the carpet area (the actual usable area inside your home), not the super-built-up area, which includes common spaces like stairs and lobbies.

3. Protection of Your Money:

Builders must keep 70% of the funds collected from buyers in a separate bank account. This prevents misuse of your money and ensures it’s only used for your project.

4. Lesser Risk of Builder Insolvency:

Since funds cannot be diverted to other projects, or can be misused the risk of builders going bankrupt is reduced, safeguarding your money/investment.

5. Advance Payment Limit:

Builders cannot demand more than 10% of the property cost as a booking advance, protecting from unfair demands and saving you from high upfront costs.

6. Buyer’s Right to Information:

You can access complete project information, including land status, contractors, approvals, and any changes made during construction. As a buyer, you have the right to know every detail about the project 

7. Legal Protection:

If a builder fails to deliver as promised, you can file a complaint with RERA authorities and get justice faster.

8. No More False Promises:

Builders cannot advertise or sell a project unless and until it’s RERA-registered. This means they must follow ethical marketing and not mislead buyers. Under RERA, every advertisement must mention the RERA registration number.

9. Interest and Compensation:

If there’s a delay, the builder is legally bound to pay interest. Moreover, if you find any defect in the property title during possession, you can claim compensation.

10. Defect Liability for 5 Years:

After possession, if any structural defects arise within 5 years, then the builder must fix them at no extra cost.

11. Boosts Real Estate Investment:

With clear rules and buyer protection, RERA builds trust and boosts real estate investments in India.

12. Mandatory Clearances Before Selling:

Builders can sell projects only after getting all necessary clearances and approvals. This protects buyers from legal or construction issues later.

Why Should You Check for RERA Registration?

Before booking your dream home, always check if the project is RERA-registered. You can do this online by visiting your state’s RERA website of your particular state. A registered project means you are protected under the law & you can enjoy all the above benefits.

Buying a home is a big decision, and RERA makes it safer and more transparent for homebuyers, especially for women who are taking charge of their financial future. Next time you look for a property, just check if it’s RERA-registered or not! If it’s not, then it’s not worth the risk!

If you are also planning to buy a home, then you can start saving and investing for the down payment of your dream home. You can check out the Lxme app– Investment for women and look out for expert-curated portfolios that are well-researched & diversified.

FAQs:

Further read:

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