Real Estate Act (RERA) stands for Real Estate Regulatory Authority which came into effect in the year 2016. real estate act(rera) was introduced by the government of India to provide relief to the buyers from the malpractices of unfair builders.
The real estate act(rera) empowered the buyers and shapes the total regulation of the activities of the builders. The head office of rera Karnataka is in Bangalore.
Salient features of real estate act(rera):
- Provides special rights to property buyers and lays down rules and guidelines to builders
- A platform for buyers to report any wrongdoings by the builder
- Secure investment and safeguarding the interest of first time home buyers
- Digitization of records and verification online
- Dispute settlement of buyers and builders
- Transparency in project executions
Benefits of buying a property in rera approved project:
Exact carpet area: The builder should specifically mention and inform buyers about the actual carpet area in their brochures and other marketing materials which should not contradict later
- Reduced Risk: Builders cannot withdraw the revenue generated against the particular project unless it is 70% completed Hence, builders can’t divert the funds for other purposes, which ensures reduced risk for the buyers and timely completion.
- No false promise: In cases where the builder has made a false commitment and mismatch in the specifications, the buyer can withdraw from the project and is entitled to get a full refund of the amount paid as advance.
- No high booking amount: According to the act the builders are supposed to take only 10% as the booking amount against the cost of the property or application fees before agreeing with the buyer.
- No defects after procession: In the case where there is any defect in build quality within 5 years then the builder should rectify it within 30 days
- No delay in procession: In case if the builder fails to complete the project on due time then the buyer can either withdraw whatever he has paid along with due interest or else if the buyer wants to wait then he is entitled to get compensated until the actual procession
What do RERA-approved projects mean in Karnataka?
The builders across Karnataka have to submit their project credentials to real estate act(rera) and upon verification, a number will be allocated to the builders which will look like PRM/KA/RERA/xx/xx/xxx. The builders are authorized to construct and solicit their projects only after they get this number from RERA. Hence the projects developed after getting this number and necessary approvals are called RERA-approved projects. No developer can start marketing their project until they get approval.
How to check RERA-approved projects in Mysore?
All builders and promoters will be given a unique number which will look like PRM/KA/RERA/xx/xx/xxx by RERA authority after they are found fit to proceed, buyers can check online by visiting here and type the RERA number to check the details of the project or can personally visit the zonal offices of RERA for collecting more information.
What are RERA-approved real estate agents or channel sales promoters?
RERA has regularized not only the builders but also the real estate agents who work under the same domain. All agents who facilitate the sale of a property have to get a certificate from RERA which will be valid for 5 years. Whether it is a company or an individual who acts as an agent or channel sales partner needs to get this certificate. The agents who have this certificate are known as RERA-approved agents. The companies who promote projects on an e-commerce platform are excluded from this regulation. The real estate act(rera) on agents is mainly focused to safeguard the interest of buyers and eliminate any kind of false promises and soliciting unapproved projects by the real estate agents. Real Estate Act (RERA) should be considered while buying properties.
For more information visit the Real Estate Regulatory Authority of Karnataka