By Surendra Hiranandani
The Real Estate Regulation & Development Act (RERA) is a defining moment in the Indian real estate sector. It will bring in a systematic approach and enhance transparency, which will aid growth of the sector. To the buyers, it safeguards their interests: brings transparency, ensures accountability and timely completion of projects. From an industry perspective, it will increase credibility in the long term, leading to higher domestic and foreign investments.
However, there are many factors that need to be carefully considered now prior to going ahead with the decision to buy property. In the current context where the buyer is king, it often becomes difficult to choose between projects since many offer similar benefits and amenities to the buyers. So, it is important to select the one that suits your requirement in terms of pricing, location, amenities and quality of construction.
The foremost question in buyers’ mind today is – should they wait until the RERA process is streamlined, or can they go in for home purchase now?
Things to keep in mind post-RERA
1. Under the Real Estate (Regulation and Development) Act all developers with ongoing projects must apply to the regulatory authority to register them, within a specified period. Once registered, they must upload project details on the RERA website and provide updates on construction progress as well as commencement, occupation and other certificates required before flats are handed over to buyers. Hence, if you are considering buying a home, ensure that the developer has applied for RERA registration.
2. Buyers should focus on projects by reputed builders with sound financial status and established track record who will have the capacity to comply with RERA as this is the most crucial aspect when you begin the search for your dream home. It is extremely important to only go ahead with reputed names in the business who have proven expertise in delivering quality products. Choosing an inexperienced developer can lead to multiple consequences such as amenities not as per agreement, rejection of loan by the bank due to bad reputation of developer, etc.
3, Enquire about the financial stability of the developer as it is important for the overall execution of the project.
4. Buyers should notice that a promoter cannot advertise or offer for sale any real estate project or part of it, without registering the real estate project with the RERA. Each advertisement has to carry the RERA registration number.
5. Ensure proper declaration by the promoter for stating the time period in which the project will be completed & provide legal valid documents of the land in which the construction will begin.
6. Ensure that the affidavit carry a date of possession and rate of interest in case of any default.
7. Approvals and Licenses: Once you have selected the builder of your choice, you must ensure due diligence and look into all the approvals concerning to your project.
8. The buyer must be aware of the difference between the super built up area and the carpet area now under the RERA clause. The super built up area in a property would include the lobby, the stair case etc, while the carpet area is the one enclosed within walls is the actual space you will get to live when you move into the property. So, it is important for buyers to understand their requirements in terms of carpet area that will help them make a sound purchase.
9. Know the total cost of the property. If you go through brokers or channel partners, they may only mention the basic cost and not other expenses such as parking, club house, preferential location charges etc. Ensure to ask for the complete total cost before booking your house.
10. There are numerous payment options offered by developers like special down-payment plan, flexi-payment plan, construction-linked plan and possession-linked plan. It is important for home buyers to understand the cost benefits of the plans being offered and see which suits them the best before choosing their option.
Most buyers tend to book projects that come closest to meeting their customized requirements at the lowest price possible. While this may seem as the right approach, buyers need to adopt a long-term perspective to property buying to accrue maximum benefits.
(The author is CMD, House of Hiranandani)