How government is protecting the rights of Indian homebuyers?

Buying a home is often a once-in-a-lifetime investment. You will come across many such prospective buyers who spend their life's savings to buy their nest. As such, these individuals require protection against any fraudulent activities and con artists. Let us find out how the government protects the rights of potential homebuyers or the ones who have already bought a home or booked one.

What is RERA or Regulation and Development Act 2016?

This Act was introduced by the Indian Parliament. The main objective is to protect the rights as well as the interests of the homebuyers. The act is considered to be a landmark decision in the real estate sector that aims at protecting homebuyers.

What is RERA all about?

We will go through the same below in brief.

1. Right to Obtain Accurate Information

   One of the basic rights that homebuyers can enjoy under the Act is to get information that is transparent and accurate about the project lifecycle. Under this Act, homebuyers enjoy protection from advertisements that are misleading and misrepresented.

2. Right to Timely Possession

   As per the RERA Act, projects must be delivered by the developers within the timeframe that was mentioned in the agreement. In the event of any delay, the homebuyers will receive compensation or a refund along with the interest. Developers must adhere to project schedules.

3. Right to Transparent Sale Agreement

   The developers must provide a standardized sale agreement as per the RERA Act. The agreement must include clauses that entail stuff like carpet area, specifications related to construction, default penalties, pricing, and date of possession. Unfair terms and conditions are prohibited as per the Act.

4. Right to Quality Construction

   The homebuyers have the right to quality construction which is standardised in the property that has been purchased. In this context, to make the construction a quality one, standard raw materials must be used, aside from adhering to the approved building plans, and maintenance of structural construction integrity.

5. Right to Access Project Documents

   According to the RERA Act, homebuyers enjoy access to the documents as well as updates that are related to the project. The developers must show the documents to the homebuyers. The documents include the approvals, the plans, certificates, and any other document that will impact the investment of the homebuyer into the project.

6. Right to Redressal and Compensation

   According to the RERA Act, it sets up the RERAs or the Real Estate Regulatory Authorities at state levels for addressing disputes as well as grievances. The homebuyers are eligible to file complaints with the RERA authority for violating any norms. The authority has been given the power to mediate between the parties, carry out an investigation of the complaints filed, issue orders appropriately, resolve disputes, as well as protect the interest of the homebuyers.

   In a nutshell, the RERA Act that has been introduced by the government has safeguarded the rights and interests of homebuyers. This has facilitated essential aspects like transparency, minimizing fraudulent activities, and encouraging fair rules, practices, and regulations in the real estate sector in the country.