RERA and its Approval in Availing a Home Loan - Make Money Online

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RERA and its Approval in Availing a Home Loan

There are many factors to be considered before purchasing a home because it involves a large sum of money. Once you get into the spree, you will realize that buying a home does not come without perils. In view of this, an important factor to be considered is the credibility of the builder and that’s where RERA comes into play.

What is RERA?

RERA is the commonly used abbreviation of ‘Real Estate Regulatory Authority’ introduced in 2016 to safeguard the interests of home buyers. It is mandatory to register all Real Estate Projects with RERA. It aims at providing relief to the buyers by eliminating the possibilities of malpractices of unfair builders. Through certain norms for building and development of real estate, RERA brings in transparency in transactions. In the event of any wrong doing by the builder / developer, the home buyer can file a complaint to the Real Estate Authority and Appellate Tribunal created by RERA.

Once the project is approved by RERA, there are conditions that are required to be fulfilled by the builder.

Conditions vis-a-vis advantages of RERA approved property

The promoter should maintain a separate escrow account for each of its projects. A minimum amount of 70% from investors and buyers will have to be deposited in the account. It can be used by the builder for construction of the project and the cost of the land.

Developers upon registration have to keep buyers informed of their other ongoing projects

Builders cannot demand more than 10% of the property cost as an advanced payment booking amount before signing the registered sale agreement

Standardized carpet area has to be specified by the builder

If there has been a fake promise made by a builder to a buyer, the builder will have to refund the full amount

The builder is entitled to know all the information (Right to Information) related to the project.

If you are looking out for a new home, a housing loan takes care of the funding, upon assessing your home loan eligibility. Do ensure that the project is RERA registered. It should be the first step to take after you choose the locality along with other essentials and before you decide on the builder. While a home loan finances your dream, RERA attributes the security aspect that is of paramount importance to safeguard your interests. 
RERA and its Approval in Availing a Home Loan RERA and its Approval in Availing a Home Loan Reviewed by RAWAT on 1:18 AM Rating: 5