Understanding RERA: What Pune Homebuyers Should Know

The Real Estate (Regulation and Development) Act, 2016 (RERA) has made a major change in the real estate sector in Pune. Not only has it regulated the sector, but it has also allowed homebuyers to know what they are buying. If you are looking to buy property in Pune, you must know about RERA. Here’s what you need to know.

What is RERA?

The Real Estate (Regulation and Development) Act, 2016 was enacted with a view to bring transparency between developers and buyers in the real estate sector. It has also made it mandatory for all new projects and agents to register, addressing issues like project delays, misuse of buyers’ funds and lack of transparency in transactions.

One of the first states to enact RERA, Maharashtra has set up MahaRERA – the regulatory authority. Pune has been one of the key markets in the state’s real estate industry, and this regulation has directly affected Pune.

In this article, we will look at the key features of RERA and how they affect Pune real estate.

Mandatory Registration

Every new project and every ongoing project with a land area of more than 500 square meters or eight apartments must be registered with MahaRERA. Developers are required to submit detailed information about the project, including:

• Layout plans
• Carpet area specifics
• Approval details
• Completion timelines

This helps RERA Pune buyers to have the right information about projects before they make their decisions. According to 99acres, as of January 2019, MahaRERA had over 5,000 projects and more than 3,000 agents registered.

Financial Transparency

The project funds are required to be deposited in a secure account by the developers, 70% of the project funds. Withdrawals are based on the project’s progress and certification is required at every level. This reduces the chances of fund diversion and projects are completed within the agreed time.

Standardised Agreements

RERA has also brought in a standard format for sale agreements, which prevents sellers from including complicated or confusing clauses that buyers may not understand. These agreements explicitly outline:

• Payment schedules
• Possession timelines
• Penalties for delays

This makes RERA approved projects in Pune more confident for buyers as the projects are backed by law.

Grievance Redressal Mechanism

RERA says homebuyers have the right to file complaints with the regulatory authority on issues of project delay, substandard construction or non compliance with rules. These complaints must be resolved by MahaRERA and developers, including Engineers Horizon, must be held accountable.

Benefits of RERA for homebuyers

People buy homes in a different way and their interests are protected by RERA. Here are some of the most notable benefits:

• More Accountability

Requiring developers to provide crucial project details gives buyers confidence in the legitimacy of the project. This enables buyers to not depend on verbal promises or advertisements.

• On-Time Possession

To a great extent, RERA’s measures protect the financial interests of projects and minimise delays. Buyers are also legally entitled to compensation for delayed possession.

• Shield Misleading Advertisements

Developers can market only projects registered under MahaRERA. To ensure that buyers get accurate information about projects, these claims can be verified by the buyers on the official RERA portal.

• Accountability

An effective grievance handling mechanism can help buyers seek justice. MahaRERA has to resolve the disputes within a stated timeframe.

How to know if a property in Pune is RERA approved?

Buying a home is a capital intensive decision. One of the steps is to ensure that the property is registered with RERA. Here’s how to verify RERA approval of a property in Pune:

• Visit the MahaRERA Website

Detailed information of all registered projects is available on the MahaRERA website. You can search by the project or developer’s name.

• Check the Registration Certificate

Every legal project registered under the RERA Act has a unique registration number. Ask the developer to request this number and check it online.

• Examine the Details

The website provides the project timeline, approvals and financial status. Compare these details with what the builder has told you.

• Seek Legal Advice

If you have any doubt about the project approval or the legality of property documents, consult a lawyer.

By following these steps, buyers’ investment will be secure and compliant with RERA regulations.

The Real Estate Sector in Pune: Effects of RERA

RERA has brought a lot of changes in Pune’s real estate market and has increased buyers’ confidence. Key impacts include:

• Fewer Delayed Projects

Developers are now forced to follow project timelines. If they don’t, they get penalized, which is good for buyers who would otherwise be stuck in indefinite delays.

• RERA certified properties are in higher demand

Today, RERA certified projects are given more importance and developers are encouraged to focus on registration and transparency.

• Efficient Dispute Settlement

Many buyers in Pune have been able to tackle issues of delays and mismanagement with the help of MahaRERA.

Challenges in Implementation

While RERA has revolutionised the sector, challenges persist:

• Some developers attempt to avoid registration by breaking large projects into smaller phases.
• Poor awareness among buyers about RERA provisions is the reason for underutilisation of RERA benefits.
• Education of buyers and enforcement against developers who break the rules is being strengthened.

First Time Homebuyers in Pune Need RERA

First time homebuyers are overwhelmed by the real estate market. It is a safeguard for their interests. Here’s why they should prioritise RERA-approved projects:

• Assured Quality: Stringent laws hold developers accountable for construction quality.
• Legal Recourse: This gives buyers a reliable way to resolve disputes.
• Informed Decisions: Buyers have detailed project information, eliminating uncertainty.

Conclusion

With the implementation of RERA, the Pune real estate sector has improved a lot. Homebuyers now have increased transparency, better financial safeguards and greater accountability. It is important to understand RERA rules whether you are buying your first property or your tenth investment.Investing in RERA approved projects in Pune is legal and safe. Buyers can leverage RERA provisions and ensure property approvals to protect their investments and make informed decisions.