The recent Real Estate (Regulation and Development) Act (RERA) 2016, which was finally implemented on the 1st of May 2017, has been the source of much speculation and curiosity. The greatest question throughout the entire situation has been how it will affect home buyers, considering it is an act passed to benefit the common people. Two things that have been clearly understood from the implementation of the act is that we will be seeing a great decrease in the number of delayed projects and an increase in quality projects.
While these are things that are certain to be expected from any law being passed for the betterment of home buyers or investors, there are a number of other important factors that have been addressed through RERA that are bound to be beneficial to the home buyers throughout the country. So, whether you intend to buy a 2BHK in Mulund or a duplex in some other part of the city, having your interests safeguarded through this act will go a long way in increasing the demand for real estate investment. Here are some of these aspects:
Builders can only charge for carpet area
According to RERA, the builders cannot charge buyers for an additional area not including the carpet area. For example, if you invest in a 1500 sq.ft. property that has a carpet area of 1200, you are required to pay only for the 1200 sq.ft and not the entire property. While this is applicable only to certain areas, it is one of the best advantages that have been introduced with the act.
No delays by builders on projects
The number of delayed and incomplete projects have seen no end in recent years due to various reasons. The newly implemented act has made a provision wherein the builder can cause no delays in the project by providing transparency to the investors from the start.
No compromise in quality of construction
The quality of construction is another aspect that this act wished to combat. With failing quality leading to many mishaps, the quality of the good used has become a priority for the regulators.
The funds to be used solely on that particular project
A huge reason for delays has been the distribution of funds in the current for a particular project to complete another. The act specifies that the investment made by an individual will, in no way, be used to build another’s home.
The above factors are sure to benefit home buyers in Mumbai by letting them get the quality homes for the hard-earned investment they make into any project.