RERA - Real Estate Regulation and Development Act

When you are buying a property it is always good to be careful. Now, you need not be misled by fraudulent practices like false sale agreements, dubious delays in handing over properties changes not as per building plans and more. RERA(Real Estate Regulation and Development Act) has brought in a revolution in the real estate industry and made real estate deals simple.

Before buying your luxury apartment in Kochi, just check out how RERA has made this change come about!

1. Delay in Handing Over

Before RERA, long term delays were there in handing over units(nearly 3 to 5 years) completely against the terms of the sale agreement. Post RERA if a builder falls behind schedule for completing the project, customer should be compensated. The government can even impose a fine of up to 10% on the builders if there is a major delay.

2. Absconding Builders

Many cases were reported earlier when builders went absconding after collecting huge deposits and funds from home buyers for the apartment or villa under construction. Some builders absconded the projects while work was in progress causing great losses for the buyer. RERA stipulates to punish such errant builders with 3 years of imprisonment.

3. Non-adherence to the sale agreement

In the days before RERA act if buyers wished to withdraw or cancel the agreement they made with an apartment/villa builder due to the slow pace in construction or due to unsatisfactory services, many builders refused to adhere to the sale agreement and refused to refund the invested amount of the home buyer. But RERA has brought in a consumer redressal system where the customer's complaints are dealt with in a priority basis and ensures that the developers will have to risk losing their license if they do not toe the line. 

4. Deviations from the original plan

Now builders cannot violate the sanctioned project plans or deviate from the initial plan at the time of construction of the apartments in Kochi. As per RERA norms, every real estate project with a total developed area exceeding 500 Sq. mtrs.  or more than 8 apartments proposed, must be registered. Existing projects without the completion certificate(CC) or occupancy certificate(OC) also need to comply with the registration requirements under the Act.

5. Obtaining illegal permissions 

Today it has become difficult for builders to get illegal permissions from government-controlled bodies for power, water and other utilities by producing forged documents. Post RERA all this has changed for the better! There cannot be pre-launches without requisite approvals from the local municipal or development authority and registration with the regulator. 

6. Advance payment not more than 10%

RERA specifies that no builder shall accept an amount more than 10% of the cost as an advance payment or an application fee without first entering into a written agreement for sale and registration of the sale agreement.

With the launch of the RERA, homebuyers can let their worries go and venture into buying their luxury flats in Kochi with confidence. Buy your flats in Cochin from a trusted builder like Dreamflower housing projects registered with the RERA. Book now!!