Real Estate Industry And Role Of Rera

Real Estate Industry And Role Of Rera

Real estate has always been an emerging and growing industry. Real estate is an area which deals in real property that includes land and improvements, buildings, fixtures and so on.

Is Real estate and construction line is same :- 

No, Real estate and construction line is not the same line in terms of profession both of them shares few differences which are as follows:-

  • Real estate firms are engaged in Real estate, land, buildings whereas construction firms are engaged in Land, buildings, renovation and replacement.
  • Real estate firms could be a part of construction firms but construction firms are broader in approach then the real estate firm.

Work in Real Estate:-

In real estate firms the task of the builder is buying or selling of a building and building the new buildings and complexes to sell.

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Real estate Business and profits:- 

Real estate business comes up with high risks and high profits as people working and investing in this industry put a lot of money as an investment in developing a building and further amounts are being spent on other factors too but surely it gives a higher rate of return on the amount invested.

Role of RERA in Real estate:-

RERA is Real Estate Regulatory Authority which came into existence in 2016. The main purpose of this act is to provide safeguard to the buyers of property from the unfair practices by the builders.

RERA further have specified norms for the Real estate industry which helps in providing a see through in the transactions related to Real estate industry.

RERA in its act specifies the rules and regulations for both the buyer and seller of the building and prepares an option for people to knock the door of this tribunal in case of any dispute with respect to property matters.

Benefits of RERA Act:-

RERA Act provides 10 major benefits which are as follows:-

  1. Standardized carpet area: Now builders have to follow the formula defined under RERA act for computing the carpet area of the property.
  2. Builder insolvency/ property: With this act the buyer gets stability and helps in reducing the risk with the 70% scheme deposit for the builder which reduces the risk of insolvency and bankruptcy for the builder.
  3. Right of buyer: If there is any false promise made by the builder to the buyer then by the virtue of this act the right of buyer in such case will be applicable as per the laws.
  4. Advance payment: Now the builder can not take more than 10% of the cost of the apartment from the buyer.
  5. Buyer right in case of delay in possession: Now buyer has the right to withdraw the money if the project gets delayed from the promised date.
  6. Rights of buyer in case of defect in title: Buyer have a right to claim compensation in such case.
  7. Right to Information: The buyer has the right to know all the information with respect to the project.
  8. Authority for grievance redressal: In case of any issue any authority has to be made for settlements.
  9. Rate of interest on default: In case of payment delays both the parties are liable to pay the interest on default.
  10. Right of buyer in case of defect after possession: In case of any structural defects the same have to be rectified by the builder within the specific time span.