In the year 2016, the Indian government came up with the Real Estate (Regulation and Development) Act (RERA). Now, it wouldn’t be wrong to say the introduction of RERA has impacted and brought in some revolutionary changes in the Indian real estate, making it safer and more convenient for home buyers to buy a home in India.
However, before talking about the impact of RERA, let's talk about the major challenges faced by the customers.
Bottom line: Even though the market situation is not in favor of the builders and property, you, as a customer, can leverage from this golden opportunity and own a property in Bangalore. Another thing which can make the process of buying a flat in Bangalore is a home loan. There are various financial institutions who offer home loan of up to Rs. 3.5 crores which can be paid back in a tenor of up to 20 years. The home loan interest rates terms and conditions, however, vary from one lender to the other. It is thus ideal to check what each lender has to offer thoroughly before choosing a lender.
Additional Read: The launch of RERA Act and How it Impacted the Real Estate Sector- Delay in giving possession to the buyer by the property dealer.
- Increasing cases of malpractices such as demanding additional money, reduced carpet area compared to the promised size, changing the society plans without informing etc.
- Property is sold to buyers based on carpet area and not on the super built-up area.
- Developers diverting the buyer’s money to start a new project instead of focusing on the promised property.
- Shortcomings in the project.
- As per the regulations of RERA, "No developer or builder shall advertise, market, book, sell or offer for sale, or invite persons to purchase any plot, apartment or building, in any real estate project or part of it, in any planning area, without registering Real Estate Project (REP) with RERA.”
- RERA also makes it mandatory for the builders to disclose the details about the project on the website set up by the authorities.
- Also, RERA has issued an ordinance making it mandatory for the real-estate developers to deposit 70% of the amount realized for real estate project from allottees, in a separate account to be maintained in a scheduled bank to cover the cost of construction and land cost. In addition, the money so maintained should be used only for the afore shared reasons.
Bottom line: Even though the market situation is not in favor of the builders and property, you, as a customer, can leverage from this golden opportunity and own a property in Bangalore. Another thing which can make the process of buying a flat in Bangalore is a home loan. There are various financial institutions who offer home loan of up to Rs. 3.5 crores which can be paid back in a tenor of up to 20 years. The home loan interest rates terms and conditions, however, vary from one lender to the other. It is thus ideal to check what each lender has to offer thoroughly before choosing a lender.
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