Pandemic Covid-19 Lockdown and buying RERA Projects

7/13/2020 3:23:00 PM

It seems Pandemic Covid-19 will not stop until its vaccine found and now we have left with prevention only which can help us to survive pandemic.It is creating catastrophe globally.Covid-19 and Lockdown have changed people's prospective towards their life.Pandemic Covid-19 has succeeded to stressed out on social Infrastructure,Among other social infrastructure,Huge health infrastructure should also be seen as important,as it has a huge impact on our economic growth.Covid-19 proves practically how citizen's good health bridging the gap between Country's economy and its growth. During the pandemic,people's different faces have been seen, tenants and paying guests were being harassed by landlords, Reports said.Corona spread was becoming dangerous and misconceptions over pandemic and other rental issues were forcing landlords but to evacuate rented accommodation. Where some were doing inhumanity meanwhile, many volunteers came to help others to provide covid -19 safety gadgets and many were came to feed hungry.Animals too were not deprived from humanity. The days of lock down seem worse when the house is not even yours.Pandemic Covid-19 Lockdown forced us to think about our own home,where,we can take care of our self and our loved ones by giving them hygienic place called home and let our family corona free. Owning Home is everyone dream and Covid-19 spread has been succeeded to convert dream into the need of the hour.In india ,residential demand is on boom and NRIs real estate demand kept pace in their home town,Reports said. Home is a peaceful and secured place, where we feel comfortable and enthusiastic.We can do what we want to do.In your own home, you are the only who can make and break the rule, nobody can instruct you to do this and that,However, EMIs are being paid, if you take home loan,But it will not disturb your mental peace because EMIs are giving you ownership and once EMI finishes it will become your tangible asset.Means you can enjoy your asset since buying your dream home.Fortunately, RERA and PMAY are two among other are working like demand booster to encourage residential demand, and low interest home loan is working like catalyst into it. RERA empowers buyer.Earlier,buyer's property buying decision was hit in the absence of RERA but now seeing in upward trend in residential property. It seems RERA has been successful to bring confidence in residential market even in pandemic corona virus lockdown. What is RERA? RERA stands for Real Estate Regulatory Authority.It aims protecting the interest of property buyer in real estate sector and to establish an arbitrating mechanism for speedy dispute redressal. Project delivery delays, property pricing, quality of construction, title and other changes are the issues which RERA regulates and addresses the issues in an efficient and transparent manner. RERA empowers both Builder or Developer and Buyer, as most of the things were favoring Builder. RERA brought many norms that will protect buyers from unfair builders malpractices. Takeaways of RERA Standardized Carpet Area Earlier the carpet area on which the property price calculated was not defined.Every builder/developer had their own method of calculation of the carpet area.Means for the same property the builder would calculate the carpet area of 1400 sq ft and the other would calculate the carpet area of 1500 sqft ,Hence there was no parity in carpet area in the absence of RERA.However,this has now been defined by the RERA Act,and the same formula would be applied by all builders/developers for the calculation of the carpet area. Subsequently, it will impact property prices as price calculates on the basis of the property carpet area.Builders compute the price of the property as follows: Cost of the property=Carpet Area x Rate per sq ft Rate of Interest on default Earlier,In case of default on payment by the buyer ,the interest to be paid by the builder to builder was higher on the contrary if builder delays the possession of property ,the interest to be paid by the builder to the buyer was less.Means there was no parity in the interest to be paid for both parties.RERA defines the interest to be paid by both parties will be the same for both parties.RERA has been successful to bridge the gap between two. Reduces the Risk of Builder Insolvency/Bankruptcy Usually A builder has many projects to be built which have to build simultaneously. Earlier,Builders were free to divert the fund raised from Project A to fund the construction of project B. Now,This would not be possible as RERA defines norms which help to reduce the risk of Builder Insolvency .According to RERA,the builder is liable to deposit 70% of the amount realized in for the project in a separate bank account.Builder can withdraw from such account only on the basis of completion of project,which will be certified by a civil engineer,architect and a chartered accountant in practice. Compensation over False Promises RERA empowers buyers, If there is mismatch over builder commitments and actual property, the buyer has an option to withdraw from the property, RERA ,buyer is entitled to full refund of the amount paid as advance or otherwise along with interest and claim compensation. Right to information The buyer will be entitled to have all the information related to the property,layout plan,execution plan,stage wise completion status etc. Pradhan Mantri Awas Yojana: Having own home is a dream of everyone,unfortunately,some are deprived to fulfill this dream,among so many reasons,financial issue impacted the most of home buying decisions.Fortunately Pradhan Mantri Awas Yojana give a hope over it and many have been benefited from Awas Yojana.