Every individual dream to have his own home. The feeling of having a home of your own is unexplainable. Some people consider their home as a status symbol, while others find it as a safe investment choice. However, rising real estate costs can leave the dream of owning a home unfulfilled for many. In such crucial times, home loans can be of major help. But, at times you may get duped out of the delivery dates or amenities initially assured by the dealers. When in such hardships, the Real Estate Regulatory Authority (RERA) Act can bring transparency on the deals by wiping off the possible confusions. With the introduction of the act, even the home loan interest rates are getting increasingly competitive.
To augment the real estate investments, and to protect the buyers, RERA came into effect on 2017. The Real Estate Regulatory Authority Act is aimed at protecting the interest of buyers and ensuring the accountability on deals. As the Real Estate is open to frauds and deceits, RERA ‘s goal also includes reducing such malpractices. The goal of the act further includes curbing the ambiguities regarding the information between the builders and buyers.
Impact on Home loan customers
The introduction of the RERA has brought a sense of relief for the buyers who faced frauds in the real estate deals. The influence has created both long term and short-term impact on the buyers, especially on housing loan customers.
Boosts the confidence – RERA act boosts the confidence of the housing loan buyers. As all the new and existing real estate projects come under the act, the buyers are more confident about their investments on the property. The investors know that even if they avail a home loan, their most significant investment is covered against all the possible human-made harms.
Assures Security – The RERA act also safeguards the interest of buyers. A minimum of 70 per cent of the buyer’s funds is kept in a dedicated project account. The withdrawals are allotted based on the covering construction and land costs. Further, an engineer, architect or a chartered accountant must certify the estimate of such costs.
Creates Transparency – The builders are required to present only the original documents to the buyers. Without the consent of the buyer, they are not allowed to make any changes to the already written agreement. Besides, the builders must ensure a positive warranty on their interests. Buyers can use this information in the wake of any discrepancies.
Ensures Proper Authorization – RERA act requires all the builders to login and furnish their details on its website. If their application is successful, the builders will be provided with a registration number, login identity and password. Not only the builders, but the real estate agents are also required to register on the site. They must show their registration number during the deals. No builder can advertise, sell, or construct a new project without completing the registration.