If you have been planning to buy a new home, now is the right time. We say this not just because the real estate market is bright now but also because Builders in Bangalore RERA (Real Estate Regulation Act) is here.

If you do not already know what RERA is-

The Builders in Bangalore Real Estate Regulation Act was in the paper for over a year. And finally, the Act has been passed. This was framed mainly keeping the real estate investments in mind. With the growth of the real estate market, we have witnessed buyers quoting unreasonable prices. This is one of the major threats to the home buyers. With skyrocketing prices, this Act comes as a relief for the home buyers.

Though there have been common rules laid down for the Builders in Bangalore, states can sometimes flex the rules to an extent. But no matter what, the truth still remains that according to RERA of Builders in Bangalore, “The Buyer is the king”. Does that mean bad news then for the builders? For those who have been following fair practices, this would not make much of a change. But for those builders that have been quoting unjustified prices and unacceptable delays will now have to rethink their practices.

Here are a few key takeaways from the Builders in Bangalore Real Estate Regulation Act benefiting the home buyers:

1. With respect to the construction:

The quality of the construction is of prime importance but it is also the one often neglected by builders. After all, buyers only get the real picture few years after the house is constructed and sold. RERA covers this aspect. According to the new rules, for 5 years after the handover of the flat, the builder still remains responsible for the construction-related maintenance. Any defects that occur in the building due to poor quality construction would have to be rectified by the builder within 30 days. And this should be done free of cost.

2. No more delays:

Talking about buying, a flat’s possession dates are pivotal. But there are hardly few builders that keep up the possession date promise. According to the Real Estate Regulation Act, the builder should handover the house exactly within the stipulated time. If there are going to be any delays, the builder would have to return to the buyer the entire amount paid for the flat plus the interest mentioned in the agreement.

3. There will be an escrow account:

There are instances where builders take money from the buyer and use it on another project or a house. To avoid this, once the buyer deposits the amount, 70% of it would be deposited in an escrow account. As and how there are expenses for the concerned project the money is withdrawn from the respective escrow account.

4. Promotion, booking, and registration:

Starting with advertising the projects builders now have stringent norms to follow. Only those projects that have been registered under RERA would be permitted to start their marketing. You would also be able to get the Real Estate Regulation Act registration number from the ad itself. This is simply to make sure that you are investing in a RERA approved project. This would ensure that there is a check on the booking amount that has been requested. Builders would no longer have to ask for a booking amount which is more than 10% of the cost of the property. So you would not be asked to pay more than that before the official registration of the property. Every detail of the project including the approvals and plans would have to be registered by the builder with the regulatory body.

5. Right to information:

To set aside all ambiguities and to ensure the buyers the right to information, RERA now makes it mandatory for the builder to lay out every detail of the project to the buyers. The buyer can get to know all about the plans approved, registration details, the overall plan of the entire layout, and other specifications. Other minor details including the electricity, water and sanitation management of the building or the layout, on the whole, would have to be provided to the buyer. And finally, a buyer would also be promised a date of possession and the scheduled date of completion of the project.

Besides the above-mentioned points, there are also others that prevent builders from exercising discrimination in any form. Though property prices as such would not be influenced by Real Estate Regulation Act, there would be a significant change in the overall process. There is now a standard that is slowly forming. This would prevent rogue builders from bullying any buyers whatsoever. Buyers can also be ensured of better quality construction of their future homes and thus a better value for their money on the whole.