The Government of India introduced the Real Estate Regulatory Authority Act in 2016 to safeguard home buyers’ interests and promote investment in the real estate sector. This Act was passed on March 10 and came into effect on May 1 2016.
Here is a detailed overview of the RERA Act to help you have a clear idea about its features, benefits and other crucial aspects.
RERA was inducted with the motive to enhance transparency and accountability in the housing sector. These are some of its significant features:
Make sure to provide all necessary documents and information about a project with the buyers. Any misrepresentation or fraud will lead to the cancellation of registration.
Also Read: Home loan insurance
To register any project under RERA, you have to furnish these documents:
RERA provides a host of benefits for home buyers, real estate agents, builders and promoters. These include:
With the RERA Act, it is now mandatory to obtain Occupancy certificates or Completion Certificates for registration of sales deeds of a particular project. However, there have been rampant registrations of units without proper Occupancy certificates.
These are some of the noted impacts of RERA:
Also Read: Home loan prepayment calculator
As a prospective homebuyer, you should look for projects that have been registered under RERA Act. This will help you eliminate any risk of loss and get compensation in case of fraud.
If you are looking for home loans, you can consider NAVI. Download the Navi app to get a loan with a premium of 8.39 % p.a. available up to 5 Crore.
Ans: Promoters can face the following penalties under RERA Act:
For providing false information: 5% fine of the estimated cost of a project
Non-registration of the project: 10% fine of the project cost
Violation of provisions: Either 3 years of jail or a 10% fine of the project cost or both
Ans: As per RERA, the carpet area is the total floor area enclosed within the walls of an apartment. This does not include areas such as balconies, terraces, shafts, or anything else. This standardised definition of carpet area will make sure that dishonest promoters do not misguide homebuyers.
Ans: The applicable penalties for certain offences under the RERA Act are as follows:
Violation of orders given by the appellate tribunal: Imprisonment of up to 1 year or 10% fine of the price of the unit sold
Violation of Section 9 and Section 10: Rs. 10,000 per day fine till the default continues up to a maximum of 5% of the sold unit
Obtaining registration through misrepresentation or breaching the terms of registration: Revoking of an agent’s registration number
Ans: The following types of projects can get approval under RERA:
Projects of more than 500 sq. metres
Residential and commercial projects that include plotted development
Projects that did not have a completion certificate before the beginning of this Act
Projects meant only for repair, renovation or improvement and do not involve allotment of new plots or marketing or advertising will not qualify for RERA approval
Ans: 23 Indian states and Union Territories have so far established either permanent or interim regulatory authorities as of July 2017. Each state and UTs will have its specific regulator under RERA. Only 4 states Gujarat, Madhya Pradesh, Maharashtra, and Punjab, have set permanent authorities.
Are you looking to buy that house you’ve been eyeing 🏠 and you need a loan of up to ₹5 crore. Install the Navi app now and get instant in-principle approval right away! Interest rates starting at 8.60% p.a.
Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
|Home Loan Interest Rate||Home Loan EMI Calculator||Home Loan Tax Benefits|
|Home Loan Prepayment Calculator||Minimum CIBIL Score For Home Loan||How to Apply for Home Loan|
|Home Loan Prepayment||NBFC Home Loans In India||Home Loan Stamp Duty|
|Home Loan Balance Transfer||Home Loan Types||Home Loan Process|
|NRI Home Loan||Home Loan Insurance||Benefits of Joint Home Loan|
|Documents Required For Home Loan||Top Banks And NBFCs for Home Loans||Home Loan For Women|
|Home Construction Loans||Home Loan Sanction Letter||Loan Against Property Interest Rates|
HSBC Bank Home Loan Interest Rate April 2023HSBC offers a variety of home loan products designed for Indian citizens and NRIs (Non-Resident Ind... Read More »
Axis Bank Home Loan Interest Rate April 2023Axis Bank home loan interest rate starts at 8.75% p.a. The bank offers home loans up to ₹5 crore ... Read More »
Karnataka Bank Home Loan Interest Rate April 2023Karnataka Bank home loan interest rate starts at 9.26% p.a. The bank offers an array of home loan s... Read More »
BBMP Property Tax – How to Calculate, Check Status and Pay Tax?The Karnataka State Government imposes this tax on the residents of the State who own properties in... Read More »
Union Bank of India Home Loan Interest Rate April 2023Union Bank of India offers up to 90% of the property value as home loan. Union Bank home loan inter... Read More »
Hartalika Teej in India 2023 – Muhurat and Rituals (18th Sept)Hartalika Teej is an auspicious festival for Hindu women. The day is mainly dedicated to Goddess Pa... Read More »
Bank of Baroda Home Loan Interest Rate April 2023Bank of Baroda (BoB) home loan interest rate starts at 9.15% p.a. For the salaried and 9.25% ... Read More »
Stamp Duty in Thane 2023 – Property Registration ChargesIn India, every State government levies a stamp duty on property transfers. The location, type of p... Read More »
Stamp Duty in Karnataka 2023 – Property Registration ChargesIf you have recently purchased a property in Karnataka, you are liable to pay stamp duty in Karnata... Read More »
Stamp Duty and Property Registration Charges in TelanganaThe state government in India is in charge of defining rules and standards and managing the collect... Read More »
Stamp Duty and Property Registration Charges in PuneStamp duty and registration charges need to be paid to the state government to register your proper... Read More »
Apply for EC Online in Karnataka 2023 – Fees and ChargesThe Government of Karnataka has introduced an online service portal (the Kaveri Online Services por... Read More »
Top 10 Chit Fund Schemes in India in 2023Chit funds are one of the most popular return-generating saving schemes in India. It is a financial... Read More »
10 Best Gold ETFs in India to Invest in April 2023Gold ETFs or Gold Exchange Traded Funds are passively managed funds that track the price of physica... Read More »
10 Best Demat Accounts in India for Beginners in 2023Creation of Demat accounts revolutionised the way trades were conducted at the stock exchanges. It... Read More »
20 Best Index Funds to Invest in India in April 2023What is an Index Fund? An index fund is a type of mutual fund or exchange-traded fund (ETF) that... Read More »
Best Arbitrage Mutual Funds to Invest in India in April 2023Arbitrage funds are hybrid mutual fund schemes that aim to make low-risk profits by buying and sell... Read More »
10 Best SIP Plans in India to Invest in April 2023What is SIP? SIP or Systematic Investment Plan is a method of investing a fixed amount in ... Read More »
10 Best Corporate Bond Funds in India to Invest in April 2023Corporate bond funds are debt funds that invest at least 80% of the investment corpus in companies ... Read More »
10 Best Bank for Savings Account in India [Highest Interest Rate 2023]Savings account is a type of financial instrument offered by several banks. It lets you safely depo... Read More »