5 Benefits of RERA Act: Buyer’s Perspective

If you are looking to buy a property in India but have been dreading doing so because of the horror stories you have heard about delayed property deliveries and skyrocketing costs, then breathe easy, as RERA is here for your aid. 

A landmark legislation was enacted by the Indian government in 2016 to regulate the real estate sector in India. The Act aims to protect the interests of homebuyers, enhance transparency and accountability in the real estate industry, and promote investment in the sector.

With the introduction of the RERA Act, the Indian real estate sector has undergone a significant transformation. The Act has brought much-needed transparency and accountability in the real estate sector, which has benefited homebuyers, developers, and investors alike. It has enhanced the confidence of homebuyers and investors in the sector, resulting in increased investments and growth.

In this context, it is important to understand the various aspects of the RERA Act, including its objectives, provisions, and implications for the real estate sector. This legislation is a crucial step towards regulating the Indian real estate sector, and its impact will continue to shape the future of the industry.

In this blog, we aim to uncover all the major benefits of the RERA act. So read on to learn all about it.

5 Major Benefits of the RERA Act

1. Protection for your investment

One of the biggest benefits of RERA is that it provides protection for your investment. Developers are now required to register their projects with RERA and provide detailed information about the project, including the cost breakdown and the status of construction.
This information helps you make informed decisions and avoid any hidden costs. Additionally, RERA requires developers to submit regular progress reports to the authority, ensuring that they are meeting the required standards. This helps to ensure that your investment is being handled responsibly and that the project is being developed to the highest standards.

2. Strict timeline for completion

RERA requires developers to stick to a strict timeline for completion, reducing the risk of endless wait times for homebuyers. No longer will you have to wait for years on end for your dream home to be built.

With RERA, you can have peace of mind knowing that your property will be delivered within a reasonable time frame. Moreover, RERA also requires developers to submit a completion certificate, which is issued by a registered architect or engineer.

3. Dispute resolution mechanisms

If any issues arise during the course of a project, you can now seek help from the RERA authority. RERA provides a dispute resolution mechanism, saving you time, money and stress that would have otherwise gone into resolving disputes in court.

With RERA, you have a support system in place to help resolve any issues that may arise during the construction process.

4. Safety net in case of default or financial trouble

RERA also provides a safety net for buyers in case a developer defaults or runs into financial trouble. RERA requires developers to create a separate escrow account for each project, which ensures that the funds collected from buyers are used solely for that project.

In the unlikely event of a default, RERA provides a mechanism for buyers to seek compensation. With RERA, you can have peace of mind knowing that your investment is protected.

5. Increased investments 

RERA Act has increased investor confidence in the real estate sector by bringing in transparency and accountability. This has led to an increase in investments in the sector, which has in turn boosted the growth of the real estate industry.

6. Increased transparency and accountability

RERA has helped to increase transparency and accountability in the real estate sector. With all projects registered with RERA, it is easier for buyers to access information about the developers and their track record.

This information helps create a more level playing field, reducing the risk of fraud and ensuring that everyone has access to the information they need to make informed decisions. With RERA, you can be confident that you are making a smart investment.

The RERA Act has brought much-needed relief to home buyers in India. With the introduction of this act, the buyers now have greater protection and security when it comes to investing in a property. It has ensured that the builders adhere to stringent regulations, resulting in better quality of construction, timely delivery, and transparent transactions.
The benefits discussed above are just some of the advantages that home buyers have reaped from the implementation of the RERA Act. It is safe to say that the real estate sector in India has undergone a significant transformation since the advent of the RERA Act and it has certainly made investing in a property a more secure and fulfilling experience for the buyers.