Due to the complaints of homebuyers over the improper transactions that favoured the developers, a programme like RERA (Real Estate Regulatory Act) had been long overdue. But, it finally came into effect on 1st May 2016, in order to safeguard the interests of homebuyers, and encourage investment in the real estate market.
What is RERA?
RERA aims to promote transparency and responsibility in the real estate sector to ensure that only legitimate builders are in the market, keeping buyers of real estate at ease by confirming that they only acquire lawful land, free of illegal building, title frauds, purposeful delays, misleading promises, and other issues. As per the Act, before starting any building project that is larger than 500 square metres, or eight flats, every builder, broker, real estate agent, and promoter must formally register themselves and their projects with RERA. Complete information regarding the project should be provided, including the project’s name, type, and location as well as the carpet area, floor plans, completion date, and all other crucial elements. Additionally, every developer must submit an application for the completion certificate within the specified window of time.
RERA’s effect on Bangalore’s villa seekers
By requiring that each state and union territory create their own regulator and set up the regulations to govern the authority’s operation, the RERA has provided the Indian real estate industry with its first regulator. As per RERA, the revenues from the reserve account, which will hold 70% of the project fund, can only be used for land and construction costs, and must be certified by a professional. Since project promoters will be forced to submit regular updates to the regulator detailing the project’s status, home buyers are now able to follow the development’s progress on the RERA website.
Furthermore, in order to be utilized later against him by the home buyer in the event that a title fault is discovered, promoters are needed to provide a positive warranty of their right title and interest in the land. It is mandatory to have insurance against the projects’ title and construction, and its revenues must be given to the allottee after the sale agreement has been executed. Penalties of up to 10% of the project cost and jail are applied to violators.
With all of the above, you should now be free of any worries when you’re thinking to invest in real estate, even if it is an investment as expensive as a villa. Both continuous real estate developments and policy reforms have improved investment options. You have an unrivalled opportunity to invest in India’s sound economy and exceptional properties from genuine real estate developers. One such developer is MJR Builders who has been offering a number of apartments and residential villas in Bangalore, in prime locations of Electronic City, Whitefield, Kudlu Gate, and Sarjapur. There are also many other ongoing and upcoming properties across the city, all of which are genuine and legitimate, meaning no worries of getting yourself involved into any fraud in the future.