Importance of RERA – Implementation & Advantages

January 23, 2021

Importance of RERA:

Are you planning to buy plots or sites in Mysore to invest in Mysore real estate? Regardless of when you are planning to buy plots or sites in Mysore, you need to know about the Real Estate Regulatory Authority (RERA), the standard authority (since 2016) for real estate investments throughout India.

There is a dedicated RERA for almost every state and union territory in India. The set of rules for Mysuru real estate are specified under RERA Karnataka.

The Real Estate Regulatory Authority (RERA) Act was passed by the Government of India (Parliament of India) in 2016, while the Government of Karnataka implemented the RERA Act in 2017. In the world of real estate, RERA approved plots in Mysore have a high value. The main aim of this act is to ensure transparency in project execution and other related transactions and thus avoid any disputes; the same also provides protection to the buyer throughout the construction of the project. Any builder must register under the RERA Act if the property’s area is more than 500 square meters.

RERA keeps a tab on delays, construction quality, transparency, advertising offers, property or plot bookings, changes (if any) in project documentation, advanced booking amount (a maximum of 10% of the total project cost) and much more, and is fair to all parties. If the set rules are not followed, RERA imposes penalties on builders, promoters, agents and even buyers. Any complaints regarding the project can be filed against promoters, agents or buyers with RERA.

RERA advantages:

Investors or buyers need not worry about the build quality of any property. The builder will maintain it in order to avoid any legal issues in the future, as the buyer can raise any issues within 5 years of possession of the property.
Builders must keep the money invested in any project in a separate account (at least 70% of the amount), whether residential or commercial. This way, the amount cannot be misused for other purposes or clubbed with any other project’s account.
With RERA implementation, there is transparency in all transactions; the buyer is safeguarded and the builder is given a chance to prove their genuineness.
All properties must be sold only based on the carpet area – this needs to be calculated only by following RERA-imposed rules, i.e., the carpet area is standardized.

RERA disadvantages:

As in any other project, there may be unforeseen delays in the approval of registered projects or plots under RERA. Although, once it is approved, the builder cannot delay in starting the construction.
The importance of RERA implementation is so strict that until approval, projects cannot be started or even advertised. Plus, it is hard for ongoing projects that might have been stopped due to various reasons as the RERA Act does not apply to such projects.

Keep these things in mind before investing in RERA approved plots in Mysore. GSS Projects is an expert in Mysore real estate that would happily assist you in any way. Contact GSS Projects for more details.