The Real Estate (Regulation and Development) Act is one of the best things that has happened with the real estate sector. RERA act regulates the real estate market and help buyers who are often cheated by promoters by delaying projects or sometimes not delivering the project at all. It builds in the transparency, accountability, and efficiency in the real estate market.
Several realtors, such as Lodha builders are following the rules and regulations of RERA to avoid any wrongdoing with the buyer/developer. Moreover, the RERA act has served as a great confidence booster for prospective buyers. Around 45% of them are now looking to buy homes in the year 2018. In addition, RERA can be considered as a catalyst for REITs (Real Estate Investment Trust) as well. This REIT platform has already been approved by SEBI (Securities and Exchange Board of India) and just like mutual funds, it will pool the money from all investors across the country. The money collected from REIT funds will then be invested in commercial properties to generate income.
The RERA act came into force on May 2017, since then it has become difficult for the buyers to make a decision. So, if you are a confused buyer who wants to know whether your project is RERA compliant or not, check the following things before you invest your hard-earned money –
- Check the legal title: This is important for you to check that the developer has the legal title of the land on which the development is proposed. Also, ensure that it has legally valid documents of that land. RERA has completely shed away the old-age practice where someone without having a legal title would sell home to the buyers. Now, buyers need to be cautious and see whether the project they are buying is RERA compliant or not.
- Possession Date: As per RERA’s mandate, all projects have to be delivered as per the date mentioned by the developer. Thus, you must not forget to check the time period within which the developer promises to complete the project.
- Escrow account: For real-estate projects, around 70% of the amount from allottees shall be deposited in a separate account. This account has to be maintained by the banks in order to cover the cost of construction and other costs related to construction. If your developer deposits the money, this means he is willing to finish the project on time.
Over and all, keep these above mentioned points in mind as it will help you to check whether your property is a regulatory compliant or not.