The real estate sector in India has seen a transformative shift with the introduction of the RERA (Real Estate Regulation and Development) Act. Enforced from May 1, 2017, the Act was established to bring discipline, transparency, and accountability into the housing market, which for long had been plagued by delays and miscommunication.
For homebuyers, RERA came as a huge relief. The Act ensures that their rights are protected and that they have a clear legal route to resolve disputes in case of any defaults from builders. If you’re planning to invest in a home, it’s crucial to choose from RERA-registered projects in Kochi, where transparency and compliance are non-negotiable.
Key Highlights of the RERA Act
- State-Level Regulation
Each state in India now has its own RERA authority that oversees real estate developments and enforces compliance. Builders are required to register their projects with the respective state authority, providing complete project details.
- Mandatory Project Registration
Whether a project is new or ongoing, it must be registered with the state’s RERA authority. This means detailed project plans, timelines, and approval statuses must be submitted—giving buyers a clear picture before investing.
- Compensation for Delays
One of the major wins for homebuyers is the provision for compensation in case of delays. If a builder fails to complete a project within the promised timeframe, RERA ensures that buyers are compensated.
- Emphasis on Transparency
RERA mandates full disclosure from builders, including land status, layout plans, construction progress, and legal approvals. These disclosures help homebuyers make informed decisions.
- Liability for Structural Defects
post-handover, if there are any structural defects or poor workmanship, the builder is obligated to resolve them within a specific period. This offers a great deal of reassurance to homebuyers.
- Escrow Account for Project Funds
To prevent fund misuse, builders must deposit a fixed percentage of the funds collected from buyers into an escrow account. These funds are strictly to be used for that specific project’s construction.
- Standardization of Carpet Area
RERA has defined the term ‘carpet area’ as the net usable space inside a flat. This prevents misleading advertisements and ensures buyers pay only for what they get.
- Online Complaint Resolution
Buyers can now file complaints online against errant builders or agents. The platform ensures timely action and fair resolution, creating a more secure real estate environment.
Why RERA Matters for Property Buyers in Kochi
In a growing market like Kochi, where real estate is booming, the RERA Act ensures that buyers have clarity and confidence in their investments. Whether you’re looking for your first home or a smart investment, it’s wise to choose from RERA registered projects. Builders who comply with RERA guidelines stand out as reliable and customer focused.
Networth Prop partners with some of the best real estate builders in Kochi—developers are known for their commitment to quality, timely delivery, and ethical practices. As trusted real estate experts in Kochi, we help you navigate the property market with confidence, ensuring your investment is safe and rewarding.
The RERA Act has reshaped the Indian real estate sector, offering protection not only to buyers but also to genuine builders. For anyone stepping into the real estate market in Kochi, choosing a RERA-registered project is no longer optional, it’s essential.
If you’re planning to invest in a property that guarantees peace of mind and long-term value, talk to our experts at Networth Prop today.