RERA Guidelines: Top Points First-Time Home Buyers Should Keep in Mind

The Real Estate (Regulation and Development) Act, 2016 (RERA) has brought about significant changes in the Indian real estate industry. As a first-time home buyer, it is essential to understand the RERA guidelines to make an informed decision.

Here are the top points that first-time home buyers should keep in mind according to RERA:

• Check for Project Registration: Before making any payments, make sure that the project has been registered with the RERA authority. The registration number should be displayed on all project advertisements and brochures.

• Verify the Carpet Area: Ask the builder for the carpet area of the flat, which is the actual usable area inside the walls. The RERA guidelines mandate that the price should be based on the carpet area and not the super built-up area.

• Get All Information Disclosed: Ensure that the builder has disclosed all relevant information about the project, including the layout plan, specifications, and amenities. This information should be provided in writing and should be signed by both parties.

• Clear Pricing: Check that the price quoted by the builder is final and cannot be changed later. The price should be based on the carpet area and should include all charges such as parking, maintenance, and electricity.

• Escrow Account: Verify that the builder has created a separate escrow account for the project, where they need to deposit 70% of the funds collected from buyers. This money can only be used for construction and land cost.

• Completion Date: Ensure that the builder has provided a specific timeline for the completion of the project. The RERA guidelines mandate that the project should be completed within the specified timeframe, failing which the builder may have to pay a penalty.

• Quality Standards: Check that the builder is following the approved plan and using good quality building materials. The construction site should also adhere to the safety standards prescribed by the RERA guidelines.

• Grievance Redressal: If you face any issues with the builder or the project, you can file a complaint with the RERA authority. The authority has established a grievance redressal mechanism for buyers, which will investigate and resolve the issue within a specified timeframe.

The RERA guidelines aim to promote transparency, accountability, and efficiency in the real estate industry. First-time home buyers should keep the above points in mind while making a decision to purchase a property, as it will help them make an informed decision and protect their interests.