We use our entire life’s worth of savings to purchase our dream house because it is unquestionably one of our greatest financial accomplishments. Real estate being a poorly regulated market, there were no set standards that the builders had to follow. Moreover, each builder followed their own procedures that were more favourable to them than the buyer. As a result, customers were often at a disadvantage when it came to purchasing a property.
Therefore, in order to regulate the sector and safeguard the interests of the buyers, the Government of India introduced the RERA act in 2016.
What is RERA?
RERA stands for the Real Estate Regulatory Authority and was introduced in 2016 with the aim of providing relief to home buyers from unscrupulous builders. Thanks to RERA, developers now have to compulsorily register with RERA before starting a project, advertising, or selling any property in the project. This has ensured greater transparency, accountability and timely delivery of the projects.
Following the RERA Act, the Government of Kerala introduced the Kerala Real Estate Regulatory Authority (KRERA) in 2018 to put an end to the mismanagement of funds, lack of transparency in the execution of projects and delayed delivery. The act ensured a trustworthy environment amongst buyers and builders across the real estate sector in the state.
At present, all new and ongoing real estate projects in the state should be registered with the Kerala Real Estate Regulatory Authority. You can check the projects registered under KRERA here.
Benefits of buying RERA approved projects
Improved Transparency: Developers must submit their project details on the RERA website along with financial information. It includes details about the land, approved plans, approved drawings, Project Completion Schedule, No Objection Certificate (NOC), land characteristics, and ownership details.
Standardised Carpet Area Calculation: The buyer stands to benefit since the calculation of the carpet area is spot-on and accurate as per the RERA’s approved standards.
Seamless Project Status Monitoring: As per the guidelines, details regarding the progress of the project will be updated on the RERA website. Buyers can find all related information in a few clicks.
Penalty For Project Delay: In case of delays, the buyer can seek compensation or a complete refund from the builder.
No Alterations Without Consent: The buyer can launch a complaint against the developer if the plans or the layouts are being modified without the consent of the buyer.
Structural Repairs: If the buyer identifies any defects within five years of the construction, the builder must rectify them with no charges levied from the buyer.
Individual Bank Account For Every Project: To avoid developers from misusing the funds, every project should have individual bank accounts. The builder cannot withdraw more than 30% of the funds from an account, and the remaining 70% should be entirely spent on the project.
Nominal Advanced Payment: Developers used to charge almost 40% in advance payment to reserve a property. However, after the introduction of the RERA Act, they cannot ask for more than 10% as advance – which made it easier for everyone to buy their dream home.
We are RERA-compliant
The RERA Act is in favour of the buyer. So as a buyer, it makes total sense to invest your hard-earned money in RERA approved projects in Kerala.
As one of the most sought-after and trusted builders in Kerala, all ongoing iCloudHomes projects are RERA-compliant. The trust placed in us by our customers acts as a compass that guides us to create premium, world-class living spaces that adhere to various industry standards and above all, your expectations.
Take your first step towards home ownership with iCloudHomes.
Send an email to [email protected] for more information about ongoing projects.