“Ignorance is not an excuse in any country.” – Thomas Jefferson.

Finding the perfect home in a desirable neighborhood can take months or even years. It’s ironic, however, that they don’t even consider the legal aspects of their property ownership. It is easy to get so excited about buying a house that you forget other essential elements. This is a mistake that even the most well-educated can make.

Your house can cost millions to decorate and buy. It is crucial to take care of your investment. To avoid regretting later, you should carefully examine every detail. You are investing your hard-earned cash in property, so it is essential to be proactive when buying. What can home buyers do to empower and protect themselves? Continue reading to find out.

Prerequisites before the Legalities:

Before and after the sale, the buyer should make regular site visits. This will allow you to see the progress of the project firsthand. The date that the flat will be handed to the buyer is specified in the sale agreement. Typically, payments are linked to the construction progress. You can inspect the progress of the project by visiting the site. You can also check the quality of the materials used to build your apartment. You can immediately contact the builder or regulatory authorities if there is any delay, deviation, default, or concern.

RERA can be a gamechanger:

India’s real estate industry is vast, but it could be more organized. A single regulator did not control this sector’s rapid growth. There needed to be uniform standards across the country. Many property developers were unable to meet the standards and faced significant delays. Many home buyers ended up paying rent and EMI. They had taken out bank loans but could not take possession of their homes for 8-10 years. This caused many financial and legal problems for individuals and the real-estate sector.

The Real Estate (Regulation & Development) Act 2016 has been passed by parliament. The Real Estate Regulatory Authority (RERA) was created to protect home buyer interests and regulate real estate. This act imposes several legal obligations on builders to ensure greater accountability in property transactions. Under ambiguous clauses in the sale agreement, a builder cannot take customers on a ride.

The RERA is in effect, and every issue a home buyer may have, from construction to delivery, can be addressed quickly by an authority. To protect your interests, you don’t have to run from one pillar to the next. Every state is required by the RERA act to create a regulatory authority and an appellate tribunal to resolve grievances from home buyers. A greater level of accountability, transparency, and efficiency will lead to the holistic development of the real estate sector.

The RERA Act’s Most Important Features:

• In every state, a regulatory body is established to settle all disputes relating to the real-estate sector.
• Registering real estate projects with RERA is mandatory to give legal jurisdiction to the authority. Only after RERA registration can project sales be initiated.
• With the written consent of at minimum 2/3 of the project’s buyers and RERA, the builder can transfer buyers’ rights to the project to another party.
• In default, the buyer and builder must pay equal interest rates and disciplinary charges.
• The builder must compensate for any loss caused by the defect in the title.

Home Buyers Get the Best of Both Worlds:

These are some of the critical benefits that new homebuyers can get from this landmark legislation.

1. Definitions of Carpet Area: The law clearly defines the area used to calculate an apartment’s price. Builders can’t charge for super-built-up areas (SBA), and the price must be determined based on the carpet area.
2. Interest charges on default: Before RERA was enacted, buyers paid interest for late payments higher than the amount the builder would pay in the event of late delivery. Both parties now pay the same interest rate.
3. Separate bank account: Earlier, money collected by a builder for a project could be used to fund other projects. RERA requires that at least 70% be kept in a separate account.
4. Maximum Advance Payment: A maximum of 10% can be paid before the sale agreement is signed.
5. Construction Quality The builder must correct any defect in the apartment’s construction within five years after it was sold. This includes defects that occurred within the first 30 days.
6. Grievance Resolution: In every state, regulatory bodies and appellate courts are required to resolve disputes. The tribunal will resolve any matter within 120 days if the victim is not satisfied with the order of the authority.

A nominal fee can be paid to file a complaint at the state’s RERA website. The state governments have clearly defined the procedures for filing complaints.

Conclusion:

Many people make the once-in-a-lifetime decision to buy a property. It is impossible to relax about the legal aspects. You can save time, money, and energy by taking a few precautions before purchasing a house. The RERA act has given home buyers unprecedented power. Although the government has done its part by passing a solid law, it is equally important that people are aware of their rights before exercising them. In today’s world of overwhelming information, ignorance is no longer a problem. It’s an option!