Benefits of choosing RERA-approved projects for homebuyers

Established in 2016, the Real Estate Regulatory Authority (RERA), (RERA Act), was brought into effect in May 2017. RERA guidelines are defined to protect the homebuyer and increase investments in the real estate industry. The Real Estate Regulatory Act brought renewed vigour among homebuyers by infusing transparency and accountability in the industry.

Buying a home for most of us isn't just an investment, it's a life-changing decision. It involves most of our life's savings and thus, it's a highly important asset. However, any kind of conflict in the property or any delay in possession can cause emotional stress. In the past, homebuyers have often found themselves in legal battles because of a lack of regulation in the process of homeownership.

In other investments like mutual funds or equity, regulations by SEBI or the Government of India help streamline operations. However, this kind of regulatory board was missing in the real estate domain. With RERA, times are changing positively.

What is a RERA-approved project, and why does it matter?

A RERA approval signifies that a particular project adheres to all standards and regulations set by the Real Estate Regulatory Authority. As a result, it helps protect the interests of homebuyers and investors and promotes transparency, efficiency, and accountability in the sector.

For real estate developers, obtaining a RERA certificate is a comprehensive process. It involves submitting detailed plans, documents, financial estimates, and project timelines. The authority reviews the submissions, including legal compliances, land titles and permissions, before giving its approval. Before a developer markets or sells any units in a project, they must register it with RERA.

Similarly, financial transparency is highly rated in RERA-approved projects. Developers must disclose project costs, funding, fund utilisation, and more. RERA constantly monitors quality standards, safety protocols and construction norms, assuring that homebuyers get complete value for their money.

RERA guidelines also require developers to open an escrow account and deposit a portion of the project funds they can use only for construction purposes. Since RERA also mediates disputes, RERA-approved projects instil confidence in buyers and contribute to more accountability and trust.

Top 7 benefits of choosing RERA-approved projects:

1. Minimises risk - It offers peace of mind to homebuyers and investors since the project complies with legal requirements and regulatory guidelines. As a result, it reduces legal risks and uncertainties like unauthorised projects or delayed possession.
2. Protects the homebuyers - Since real estate is a significant investment, RERA's oversight mechanisms help protect the interests of investors and buyers. The dispute resolution forums and grievance redressal mechanisms promise enhanced consumer protection.
3. Boosts market credibility - A RERA approval increases the credibility and market reputation of a developer. Homebuyers are more inclined to opt for projects backed by trusted developers who have a track record of delivering projects successfully.
4. Improves return potential - RERA-approved projects tend to offer a higher resale value and better rentals as they adhere to quality standards and timely possession. Also, with buyers' confidence, there's a higher demand for such properties.
5. Promises fair pricing - Since developers provide a detailed breakdown of the project's costs - land, construction and others, buyers can expect fair pricing practices. The transparency prevents hidden costs and ensures that every consumer pays a fair price for the property.
6. Protects against false advertising - Developers with RERA-approved projects can only offer potential customers accurate and substantiated information. Thus, homebuyers feel confident about the purchase. Developers can be held responsible for any incorrect or inflated promises made during advertising or marketing the project across any media.
7. Offers structural defect liability- If developers have any structural flaws in the project that can put owners or tenants at risk or cause bodily or financial problems, they can be held liable by RERA. By monitoring projects after they are completed for a predetermined amount of time and ensuring that developers pay for any damages that arise, RERA prevents buyers from paying additional costs.

4 lesser-known facts about RERA-approved projects

Investing in RERA-approved projects offers numerous benefits, from transparency and accountability to quality assurance and legal protection. It ensures that the real estate investment is secure, providing peace of mind and long-term value. As a homebuyer, it's important to conduct thorough research, analyse all RERA documents carefully and invest in projects by credible and reputable developers. By being vigilant and proactive, homeowners can minimise risks and maximise returns in real estate.