Buying a home in a metropolitan city like Hyderabad is a dream for many. However, since real estate values are still very high compared to income levels, not everybody can afford a home. The commoner who puts his life savings into buying a home, say a residential flats in Hyderabad, is confined by the developer to adhere to a particular set of rules and regulations that tend to exploit him. The government enacted the RERA Act to protect and safeguard the rights of home buyers and ensure that they are not manipulated or influenced by real estate developers or builders. The Real Estate Regulatory Act of 2016 was enacted to ensure accountability to property allottees, increase compliance, minimize delays and frauds, expedite dispute resolution, create knowledge symmetry, and improve governance in the real estate market. Read below to know the major highlights of the RERA act.
Standardized carpet area
Carpet area refers to the entire space of a building that a carpet would enclose, minus the thickness of the walls. Unfortunately, there was no standard method for measuring carpet area before the RERA Act, and each contractor used a different formula to calculate the size. Since the overall land price is equal to the carpet area multiplied by the cost per square foot, builders inflate the carpet area in their equations to pump up the property’s price. This resulted in confusion, miscommunications, and even misleading facts until the carpet measurement process was standardized under the RERA Act in 2016. Today, every builder must use the same basic rules for measuring carpet space, thus, protecting home buyers from potential builder coercion during the purchase process.
Zero delays in project completion
The most common challenge faced by home buyers is project delays, and the RERA Act makes necessary amendments to address this issue. According to the Act, the land developer must notify the buyer of the due date for property ownership and adhere to the date. Developers who miss their deadlines are penalized by paying an interest rate of over 2% on the regular SBI loan rate to the affected home buyers and the risk of being imprisoned for up to three years in extreme circumstances.
Builders will now be held liable for construction flaws
Even though the price is reasonable and the project is delivered on schedule, the possibility of construction flaws has always been a thorn in the side that lingers until you pay from your pocket to repair it. With the enactment of the RERA Act, the contractor is now responsible for repairing any structural flaw in the property construction for up to 5 years from the date of occupancy. The repairs specified by the customer must be completed within 30 days of the defect being identified.
Quick solving of grievances
Any concerns or complaints of home buyers against the builder can now be easily addressed to the central tribunal formed under the RERA Act. In addition, homebuyers who are dissatisfied with their purchase can now file an appeal with the tribunal, which will respond in less than 60 days.
Complete details should be provided to the customer
The root cause of all conflicts and problems between the buyer and seller in any industry, particularly in the real estate business, occurs due to the provision of insufficient and inaccurate information about the land. RERA Act makes sure that even the smallest of developers must share all the details, including complete information about the plan layout, specifications, features, amenities stages of execution, and completion stage to the buyers.
We at Ramky Estates provide a complete set of details about our properties, including luxury 2BHK/3BHK independent villas and residential flats in Hyderabad. As one of the most trusted real estate developers in Hyderabad, Ramky Estates holds a remarkable track record in the construction and development of an array of notable projects like Ramky One Harmony, Ramky One Galaxia, The Huddle, Golden Circle, and many more across the south of the country. To know about our ongoing and upcoming projects, check out the project finder available on the website.