The Real Estate (Regulation and Development) Act (RERA) was implemented by the Government of India nationally on 1st May, 2017. The act covers all commercial as well as residential projects in each state. For Punjab, this act is thus implemented as RERA Punjab and was put in place for the state by August 2017. Below given are a few highlights about this act.
A brief take on RERA (PUNJAB)
- Total projects registered in India under the RERA Act – 34,000+
- Total projects registered in Punjab under this act – 752
- Number of Real Estate agents registered in Punjab – 1714
- Projects pending to be completed in Punjab under this act – 142
In line with the objectives of this act, RERA in Punjab also aims to bring transparency to the real estate sector operating in the state. Individuals looking forward to buying a house property in Punjab must, therefore, have a clear understanding of what this RERA Act comprises. It will help them make an informed decision regarding house purchase in the state.
Once they have chosen a suitable house to buy, they can proceed to look for appropriate external funding. Today, various financial institutions bring home loans, tailor-made to suit the financial requirements of home buyers. Lenders also offer attractive interest rates along with a long repayment tenor to increase the affordability of loan repayment.
They also bring pre-approved offers that make financing hassle-free and convenient while saving considerable time. You can avail these offers on multiple advances like home loans, business loans, personal loans, along with several other financial products. All you are required to do to check your pre-approved offer is provide a few essential details like your name and contact number.
Now, take a better look at what this act comprises and how homebuyers can benefit from it.
Objectives of registration requirement under the RERA Punjab Act
Any construction project being carried out in Punjab must be registered under the RERA Act. RERA aims to alter the real estate market.
- Ensuring that promoters follow all disclosure requirements for a real estate project.
- Providing guidance and support to the concerned body regarding the real estate sector’s promotion and development.
- Ensuring transparency of all real estate registrations to RERA.
- Facilitating quick redressal of grievances related to registered real estate projects.
- Overseeing the sale of apartments and flats to help maintain a fair market price.
Benefits of Punjab RERA for home buyers
As the RERA full form suggests, the concerned authority focuses on regulating all aspects related to real estate purchase and sale. These regulations aim to ensure fair benefits to all stakeholders and participants in the sector. The benefits of RERA Punjab thus extend to the following.
- As per the act, a home buyer is required to pay the cost of the existing carpet area of the property to be purchased. A builder thus can’t charge the buyer for the super-built up space like stairs, lobby, balcony, etc.
- Under the act, builders are also required to keep the buyer updated with the progress in construction. In case of delay in handing over the booked house or apartment, it’s builder pays the buyer interest on house property’s value at the rates specified by RERA Punjab.
- The act also brings provisions for reporting any defects. The builder thus has to rectify these defects within 5 years from the date of handing over the completed house to a buyer.
- Developers are also required to provide resolution for any disputes raised by the home buyer within 120 days of complaint filing.
- If any alterations to approved construction plans are required, at least two-thirds of home buyers allotted the flats or apartments in the property must consent to the change.
- RERA in Punjab also prohibits developers from taking over 10% of the property’s market value as an advance for house allotment.
Also, first time home buyers can experience benefits with RERA in action.
Know the fees and charges involved in Punjab RERA
Homebuyers can log in to the official website of RERA Punjab through the creation of a virtual account. However, builders, developers, agency or real estate agents have to register with RERA along with stipulated fees and the required documents. The fees for this registration with RERA in Punjab start Rs. 5,000 onwards.
However, homebuyers have to pay a fee of Rs. 1,000 to register a complaint with RERA regarding the property allocated to them or purchased.
With this comprehensive guide on RERA Punjab, you must have understood how it can benefit an individual purchasing a house property in Punjab. Make sure you keep in mind your rights as a home buyer to make the most of this act. Once you are through with the house selection process, proceed to apply for a home loan to secure funding for house purchase.
