Introduced in 2016, the RERA act specifies certain norms that bring in transparency in transactions that take place in the real estate sector. The act came into being to protect the rights of homebuyers and provide relief to the buyers from unfair malpractices of several small and numerous such builders and developers. The act has specified certain rules and regulations to be followed by the builders and even provided several rights and benefits to the homebuyers.
- Standardized carpet area – Earlier every builder and developer used to calculate the carpet area as per their whims and fancies. This often led to an increase in the price of the property. Furthermore, one builder would calculate the price differently and so would the other. There was no clarity. The RERA act now states a formula be applied to calculate the carpet area along with a definition of carpet area which is “the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.”
- Easy availability of information – This is one of the main advantages of the RERA act. Homebuyers can now not be bullied by builders and developers. They have every right to know the facts about the project and the developer is entitled to share details regarding the plan of the project, completion status etc.
- No delays – Under the RERA act, builders now have to stick to the completion due date and the possession of the apartments to the homebuyers. If they are unable to complete the project or handover the apartment on the said date, they’ll have to face penalties.
- Quick grievance solving – In case any homebuyer is dissatisfied with the construction or has any issue with any commercial or housing projects in Mumbai, the homebuyer can approach the Appellate Tribunal. The Tribunal typically addresses the concerns within 60 days.
Moreover, the builder can not take more than 10% of the cost of the apartment as advance before entering into an agreement of sale. Also, if there is a structural defect discovered within 5 years after the possession, the defect has to be rectified by the builder at no extra cost. If the builder fails to do so, the buyer can claim compensation.
With the introduction of RERA act, many builders and developers in Mumbai are very cautious and focuses on delivering good service to homebuyers.