RERA redefines the carpet areas for benefit of actual users
Despite the fact that RERA has come into force on 1st May 2016, people tend to get confused with the actual space that they get to use when they buy a house. Now the onus primarily lies on the builder to open up and declare the space available for the homebuyer to use. They should help a buyer to understand the new regulations. Realty sector in Bangalore has taken the rules seriously. Reputed real estate companies have already started to follow and give confidence to the buyers. However the buyer needs to get familiar with the space called the carpet area they will need to pay.
Get the load off your mind and read on to deal with credible builders and developers in Bangalore. They have set the pace to deliver homes with ethics and in accordance with the RERA regulations.
Potential homebuyer gains
- A builder is bound to sell an apartment or villa based on the ‘carpet area’. Just in case you are not familiar with this term- it means the space which encloses the walls, interiors, net floor which is usable by a resident. However, it does not include the exterior walls, shafts, balconies, verandahs or any open terrace.
- A project under construction will have 70% of the funds allocated in a dedicated account. The builder can use it only for costs of the land and construction on it. The funds cannot be used for any other project. As the project progresses, the funds can be withdrawn. CAs, Architects, and Engineers involved in the project will have to provide certificates to release the funds. Reputed builders and developers in Bangalore whose projects are already underway in several areas follow to this protocol strictly.
- Adherence to the RERA rules ensures that the project has a quality development and is not compromised with inferior materials. The funds are used in the most judicious manner and not diverted in other projects or pet schemes of the builder. To make sure that the developers do not get an opportunity to cheat they need to upload the progress of the construction on their website. Each developer has a RERA number and this number needs to be displayed on the website but all displays and advertising materials to attract home buyers.
- Any homebuyer who wishes to have better deal and not get cheated will have to check the RERA number of the developer on the website if the flat or villa is booked during under construction phase. Failure on their part will prove to be a loss to the buyers.
Buyers also will be relieved to know…
Developers are now on a tight leash.
After May 2016, the realty sector belongs more to the buyer than to the whims of the developers. There are many other liabilities that a developer will have to shoulder and take responsibility for every phase of the construction till the flats are handed over to the buyers. The following points add confidence to the buyer whose money is now safe when investing in any RERA registered project.
- A builder can no longer offer false promises or make statements to lure buyers. This includes bragging about the status of the project in the brochures, company literature or via advertising.
- The sample flat will showcase exactly what will be offered in other flats. Builders and developers in Bangalore now are very careful of their sales & marketing strategies.
- A developer can take only 10% advance during the booking. The sale will need a written document as proof. The interest which will be paid as fine by the developer or the buyer will also have to be mentioned in the written document. The interest rate will be in accordance to the SBI prime lending rates only.
- In case there are structural changes, it needs to be bought to the notice of 2/3rd buyers. A written consent from buyers is required for any changes being made. RERA authorities will have to be notified if the project changes hands or is given to the 3rd party for development.
- The developer needs to deliver the projects on time. Failure to do so will invite the wrath of RERA and adequate compensation to buyers. The buyers can get a refund or have the power to remove themselves from the project if numerous delays take place.
- The developer will have to fix any structural defects in the apartment complex if they occur within 5 years of construction. The residents need to bring the defects to the notice of the developer in writing. The repairs should begin within 30 days’ notices.
Does this take a big load off your head? Get going your investment is now safe.