Are you someone thinking about buying a property? Then I am sure that you have come across terms like RERA, carpet area, possession date etc. RERA is one thing that you should be aware about before buying any kind of property. But what exactly does it mean, and why does it even matter?
The RERA full form in real estate is Real Estate Regulatory Authority. The RERA Act was introduced by the Indian government in 2016. This act helps make sure that the property buying process is transparent and clear. It also helps give the buyer access to important details related to the project.
RERA is an important thing to check before you invest in real estate. In this blog we are going to cover the RERA full form in real estate, the benefits it offers, and how you as a buyer can check a project’s RERA status. And also tell you what are the other things you need to verify except RERA.
What Is RERA in Real Estate?
RERA full form in real estate is Real Estate Regulatory Authority or Real Estate (Regulation and Development) Act. The purpose of RERA was protecting buyers against malpractices in real estate and creating transparency. Before RERA came into existence the real estate market had a lot of issues like delays, lack of transparency and false ads.
Being RERA approved means that projects need to be registered under the state authority. Developers are required to provide important project details, like approved plans, project timelines, property details etc. This information helps buyers make an informed choice.
RERA also sets certain responsibilities for developers and provides buyers with an official platform to raise complaints in case of any issues. It also regulates areas such as project advertisements, disclosures, and changes to sanctioned plans.
But all properties do not come under RERA, as it’s only mandatory for some commercial and residential real estate projects. So before you invest in any real estate project do check if it is registered under RERA or not.
Benefits of RERA for Homebuyers
RERA has completely changed the real estate buying and selling process. RERA project details include important information like better protection and transparency during the buying process.
Here are some key benefits of RERA:
1. Clear Carpet Area
RERA India follows a fixed way to calculate carpet area. This helps buyers understand the actual usable space in a property. Developers cannot add different areas to show a bigger carpet area. This makes it easier for buyers to know what they are actually paying for.
2. Less Advance Payment
A developer cannot take more than 10% of the property cost as an advance or application fee before entering into the required agreement for sale. This means buyers do not have to arrange a very large amount of money initially for buying.
3. Protection From Defects
If a structural defect or certain other covered defects are found within five years from possession, the builder must fix them without charging the buyer, as per RERA approval check.
4. Protection Against Delays
If a developer delays possession, buyers may have the right to claim interest under RERA real estate. At the same time, buyers may also have to pay interest if they delay their payments.
5. Protection From False Promises
RERA verification requires developers to provide correct information about their projects and follow the approved plans and commitments covered under the Act. If there is a mismatch, buyers can get a refund depending on the situation.
6. Protection Against Land Problems
If a buyer faces a loss because of a defect in the title of the property, RERA allows the buyer to claim compensation. This gives buyers protection if an ownership-related issue is found with the property.
7. Right to Know Project Details
Buyers can access important information about the project on the RERA website. This may include approved plans, project details, construction progress, and timelines. Buyers can use this information to check the project before investing.
8. Place to Raise Complaints
If a buyer has a complaint related to a project or promoter, they can approach the relevant RERA authority. RERA real estate provides a formal process for raising complaints.
How to Check RERA Status of a Project
Now that you know the RERA full form in real estate, checking the RERA status of a project is next. You just need to visit the official RERA website of the state where the project is located. Follow these simple steps:
1. Visit the State RERA Website
Open the official RERA website of the state where the property is located. For example, for a project in Punjab, visit the official RERA Punjab portal.
2. Find the Project Search Option
Look for options like Registered Projects, Project Registration, or Search Projects on the website.
3. Fill in the Project Details
Search using the RERA registration number, project name, or developer’s name. If you have the RERA number, it is usually the easiest way to find the exact project.
4. Check the Project Details
After you find the project, check the information available on the portal. This can include the registration status, developer details, project timeline, RERA approved plans, etc.
5. Match the Details
Compare the information on the RERA website with the details shared by the developer. If you notice any difference, ask the developer for clarification before moving ahead.
Things Buyers Should Check Apart From RERA
RERA registration is important, but it’s not the only thing you should check before buying a property. There are other documents also that matter instead of just RERA full form in real estate. Below is a list of what more you should check:
1. Title Deed
The title deed helps confirm who legally owns the property and whether the seller or developer has the right to sell it. You should make sure the ownership is clear and there are no issues.
2. Encumbrance Certificate
An Encumbrance Certificate (EC) helps show if there are registered loans, mortgages, or other legal claims on the property. It can tell you if the property has any known financial or legal liabilities apart from RERA details that you check.
3. Previous Ownership Records
Previous sale deeds and ownership documents show the history of the property. Make sure there is a clear ownership record of the property in the RERA Punjab portal.
4. Approved Building Plan
The approved building plan shows what has been officially allowed by the local authority. You should compare it with the actual project and make sure there are no major differences.
5. Occupancy & Completion Certificates
For a ready-to-move property, you should look for the Occupancy Certificate (OC) and Completion Certificate (CC), wherever applicable. These help confirm that the building has been completed as per the approvals.
6. Property Tax & Other Dues
Property tax receipts and other relevant payment records should be checked to make sure there are no unpaid dues linked to the property after checking RERA project status.
Final Thoughts
Now that you know the RERA full form in real estate, its importance and how to check RERA approval. By choosing RERA real estate properties you are saving yourself from frauds. If you are out to buy your first home or investing in a property, always verify the RERA project status.
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FAQs
What is RERA and its benefits?
RERA full form in real estate is Real Estate Regulatory Authority. RERA offers transparency and protects buyers against the frauds of real estate.
What is the rule of 70% and 30% in RERA?
This rule states that the developers of the project must deposit 70% of the money taken from buyers in a separate project account and leave the rest 30% for business expenses.
How much does it cost for RERA registration?
The RERA registration cost in India is different for different states.
What if a flat is not RERA approved?
Under the RERA act buyers get protection against scams and financial risks. So if a flat isn’t registered under RERA then buying it is not advised.
