The real estate sector is notorious for being unregulated and tipped in favor of property developers and builders, leaving hapless customers to fend for them to avoid being cheated. The passing of the Real Estate Regulatory Act, 2016 (RERA) ensures there is transparency and accountability and customers do not get a raw deal. If you are thinking of buying flats in Vile Parle East Mumbai, you should know the following:
- The Project Should Be RERA Registered:
All commercial and residential projects involving land of over 500 sq. m. or eight apartments have to be registered with the Real Estate Regulatory Authority. The developer is required to get all the clearances before they can sell. The rera property developer also needs to provide all project details, including the sanctioned plan, layouts, project location besides the carpet area, the number of apartments, parking areas, etc.
- Escrow Account:
The developer has to set up an escrow account where 70% of the money received from customers will have to be deposited. Rera registered developers are allowed to withdraw the money only for the development of the specific project after approval from chartered accountants and engineers appointed to prevent unauthorized use.
- Advance Payment Limited to 10% of Cost:
No promoter of rera registered properties is allowed to demand more than 10% of the project cost from any customer as an application fee or advance payment before entering into a written agreement for sale and registering it. The registration of agreement under rera is now mandatory of 1 BHK in Vile Parle East.
- Mandatory Defect Liability of Five Years:
Many customers have been cheated by unscrupulous builders who have delivered properties of poor construction quality. To put a stop to this, RERA has made it mandatory for developers to rectify structural defects in the property for five years after the sale. In case, you discover any structural defects, you can ask the builder of new projects in Vile Parle East to rectify them or compensate you.
- Carpet Area Is the Sole Basis of Calculation of Apartment Size:
In the past, most builders used super built-up area or built-up area to depict a larger area. The customers would invariably be disappointed because the apartments would be far smaller than what they had anticipated. RERA has made it compulsory for builders to use only the carpet area as the basis for disclosing the apartment size.
- Failure to Complete Possession on Tim:
One of the biggest concerns of customers was builders not only failed to deliver the apartments on time but also were not accountable. RERA seeks to put an end to this by empowering customers for a refund of the entire amount if they want to terminate the agreement. If the customer wants to continue, the builder will have to pay interest for the period of the delay.
Being aware of the provisions under rera for home buyer will help you considerably to exercise your rights as a customer when you are buying an apartment. The process of standardization and penalties will make the comparison between properties easier and prevent you from getting ripped off.