Buying a home is one?s lifetime event and it requires a great deal of effort, time, and money. From the years ago, buying an under construction apartment or flat was a risky choice.? But now the introduction of Real Estate Regulation and Development Act (RERA) has revolutionized the entire real estate industry and turned it as a productive platform for new buyers.
With the enactment of the RERA, buyers can now stop concerning fake practices that formerly were an essential segment of the real estate industry deals which comprises properties under construction. They are:
????????????? Fake agreements of sale
????????????? Delays in passing over properties
????????????? Unprepared changes in construction plans
????????????? Absconding builders
????????????? Acquired illegal permissions
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Real Estate Pacts in RERA
It is true that the before RERA, the real estate industry faced challenges. But now the real estate industry of Kerala has moved out over an extreme makeover when the implementation of the RERA occurred. It helped to generate more reasonable and fair transactions among the home buyers and developers of villas & apartments, making purchases more simple, clear and liable. RERA has formed a pool of buyers who can positively choose for any apartments or luxury flats which is under construction. So let?s check out how the RERA has transformed the earlier norms in the real estate sector.
- Compulsory Registration
Projects with a plot size of minimum 500 sq. meters or having more than eight apartments must be registered with the corresponding state?s RERA. Current projects where the occupancy certificate or completion certificate has not been delivered are also required to meet the terms with the registration requirements under the RERA. These aids guarantee that developers & their real estate projects are genuine and they follow every criteria of authority specified as per the Act. Thus when the construction of the apartment begins, the right of buyers are secured under a registered developer.
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Reserve Account
The prime reason for the delay of projects was due to the fund collected for a project, would consistently be diverted to new projects. To stop such diversion, promoters are now compulsory to submit 70% of all projects receivables into a distinct reserve account. The profits of such account can be used towards land & the construction expenditures and will be essential to be certified by an expert.
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Frequent Disclosures by Developers
After the RERA implementation, home buyers can be able to regularly monitor the work progress of their projects on the RERA website since developers will be needed to submit the periodic work progress submissions on the website.
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Penalty
Even if the best builders, made delay for handing over projects, they have to pay compensation. As the government can impose a stiff monetary penalty which may up to the 10 % of the project cost on the builders. There are also other punishments like imprisonments against violators who generate unnecessary massive delays or fraud in the projects.
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No Longer Exist Pre-Launches without Approvals
Based on the rule of RERA, no pre-launches of projects is permitted without getting the approvals from the development authority or local municipal & without acquiring registration from the controller. This allow buyers to confidently invest in the apartments or villas of their tastes which has recently been launched.
As of the arrival of RERA act, buyers can stop worrying about their project work progress. The buyer only need to choose apartment from the best builders at the right location. It is also significant to confirm that the possessions for sale have been registered under the RERA.
Head off, and never hesitate to purchase an under construction or upcoming apartment with the most trustworthy real estate builder like Varma Homes. ?All our projects are registered under RERA.? We have completed, ongoing and upcoming residential projects in Kochi, Thrissur and Trivandrum which are aimed to construct happiness.
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