RERA - Major Benefits of New RERA act for Home buyers

The purpose of RERA act is to protect the home-buyers and to boost the investments in the real estate sector. These Regulations will apply to all ongoing projects and future projects where the area of land exceeds five hundred square meters and the number of apartments proposed to be developed exceed eight inclusive of all phases. What is RERA ? RERA was enacted by the Indian government to regulate the real estate sector and address issues like delays in project delivery, unfair practices, and lack of transparency. RERA represents Real Estate Regulatory Authority, all its provision came into existence from 1 May 2016. The act was passed by the Indian parliament upper house (Rajya Sabha) in March 10, 2016 and came into force on May 2017 to make the home buying process smooth and straightforward. The primary objectives of RERA are: Protecting Home Buyers: Ensuring that the interests of home buyers are protected. Promoting Transparency: Mandating clear information on projects and builders. Ensuring Timely Completion: Enforcing deadlines for project completion to avoid delays. Creating a Grievance Redressal System: Establishing a mechanism for home buyers to address their complaints. Know About RERA Key Terms The terms like carpet area, built up area and super built up can be confusing and may sound similar. As we know the cost of the property depends on the total square foot measurement and built in terms of RERA. What is RERA Carpet Area ? RERA Carpet area is an available area within the walls of a property. The carpet area is combination of area of bedroom, living room, balconies and toilets excluding balcony and terrace area but encompass the area covered by the internal partition walls. Understanding the carpet area is essential as it directly influence the property 's value. The only difference between carpet area and RERA carpet area is the thickness of the inner partition walls. RERA Carpet area is 5 % more than the general carpet area. How RERA carpet area is calculated for projects under RERA, RERA carpet area = Net area of the flat ( excluding external walls, terrace area, balcony area ) + Internal partition walls area. What is Built up area ? The total area of a building includes the combined measurements of the carpeted space, as well as the areas occupied by the exterior and interior walls, balcony, staircase, and livable area. The built-up area is usually 10 to 15 % more than carpet area. The built up area is calculated as follows, Built up area = Carpet area + Wall areas + Terrace and balcony + Corridor What is Super Built up area ? Based on RERA regulations, Super built-up areas are quoted as saleable areas and apartments are charged based on this value. The property features a private built-up space along with shared areas such as elevators, hallways, staircases, recreational facilities, and other common amenities. The super built up area is usually 25-30 % more than the built up area. The super built area does not include lofts, parks, driveaway, garden, play hub, roof terrace and water tank. The build up area and super build up area are not considered while determining the property value. The Super built up area is calculated as follows, Super Built up area = Carpet area ( 1 + loading factor) Super built up area = Built up area + Proportionate Common area Have you heard about loading factor ? According to the RERA, the difference between the super built-up area and the carpet area of the flat is known as the Loading Factor. The loading factor for the extravagance apartments are would be below 60%. The loading factor is calculated as follows, Loading factor = Super built up area - Carpet area FSI - Floor Space Index FSI, which is one of the most important aspects of Real estate. FSI is known as Floor Space Index. FSI and FAR are almost similar but denoted differently. It is maximum allowable area that a promoter or developer can construct on a particular plot of land. Floor Space Index is restrained based on city zone, type of building, and other amenities. Floor Area Ratio can vary in the same location based on the number of floors of the buildings. The formula for FSI - Floor Space index is given below, The computation of FSI - Floor Space Index can be done using two attributes plot area and total floor area of all floors of the building. Floor Space Index = Total Floor Area of all floors of the building/Plot Area *100 Floor Area Ratio = Total Floor Area of all Floors of the Building/Plot area Benefits of TNRERA Act 1. With the mandatory registration of every project with RERA, 70 % of the funds raised must be deposited in a separate bank account (Escrow Account). They can't move the same for another project or investment. 2. The Advance payments for any real estate project is around 10 % of the project's cost. This benefits the customer to source the funds on time. 3. RERA has regularized the measurement of carpet area, based on which real estate developers can sell their properties. The measurement of property space are standardized across the nation, allowing buyers to compare properties effortlessly. The properties having carpet area of more than 500 square meters, the builder / promoters has to register it under RERA. 4. Earlier, the promoters / developer used to charge for the built up and super built up area. under RERA Carpet area has been defined and selling the property based on super build up area has been forbidden and the cost of the project solely depends on the carpet area. 5. The one of the main benefit of RERA is that home buyers has all rights to the property information and project details. 6. Another important benefit is that, Real estate in the past has been known for defaulting on the project delivery dates with many home buyers waiting for more than two to three years than the promised time of possession. 7. Earlier in the real estate industry, The building handover has not been done as expected. After the RERA Act, the builder has to strictly adhere to the project delivery timeline. If not, the developer has to pay heavy compensation to home buyer. Understanding RERA and its provisions is essential when buying a new home. It empowers you as a buyer, ensuring transparency, timely delivery, and protection of your rights. Always verify that the project is RERA-registered, review all documentation carefully, and stay informed about your rights and the builder’s obligations. This knowledge will help you make a confident and secure investment in your new home. Home buyers can view all the RERA certified projects and agents by visiting the official RERA website. You can easily find comprehensive information state wise at https://rera.tn.gov.in/ Additionally, we take pride in ensuring that all our projects are RERA certified, providing you with the assurance of transparency, reliability, and adherence to regulatory standards. Our commitment to quality and compliance means you can trust us to deliver on our promises, giving you peace of mind when investing in your new home. FAQs - Frequently Asked Questions 1. What advantages does RERA offer to home buyers? RERA benefits home buyers by ensuring transparency, timely project delivery. It mandates financial protection through escrow accounts and promotes standardized practices, ensuring quality and accountability in real estate transactions. 2. Are all our real estate projects are registered under RERA? Yes, all Visvas Promoters real estate projects are registered under RERA, ensuring transparency and compliance with regulations. Discover our story, mission, and the people behind our success as the best builder in Madurai on our About Us page. Click here to explore what sets us apart. 3. How does RERA benefits first time Home Buyers? RERA benefits first-time home buyers by ensuring transparency, timely possession, value based pricing, high construction standards. It also gives them a way to solve problems if anything goes wrong, making them feel more confident and secure about buying property. 4. Can builder make changes to the project plan after RERA registration? Any drastic alteration in the project plan post registration require the consent of two third of the buyers and must be approved by the RERA authority. 5. How can I check if a project is RERA registered? To check, visit the official RERA website of your respective state and search for the project using its name, developer's name and registration number. This ensures transparency and helps verify the project's compliance with RERA regulations before making any commitments. 6. Can builders charge for carpet area or super built up area? Under RERA, builders are allowed to charge based only on the carpet area, which is the net usable floor area of an apartment. Charging for super built-up area is not permissible.