MahaRERA the Red Flag: What you need to know before investing?
It is such a good feeling to get a house irrespective of if it is for investment or for the family. In recent days one of the projects are getting more popular in Thane because they are situated near the bustling city Mumbai. If you are also thinking for Property investment and want to invest in this project then give it a second thought. Without proper background research and verification investing in any of the property can turn out to be a disaster. One of the crucial things that you need to check is that the property is properly registered with the state’s RERA authority.
MahaRERA Regulations which stands for The Real Estate Regulation and Development Act is proposed to protect the interest of homeowners. When you are thinking to invest into any unregistered property of RERA then it can be a serious risk for buyers. Before you even invest into any of such properties, make sure to take a look at the consequences of purchasing an unregistered RERA property. Don’t worry we are there to help you with the same. Let’s get started.
What is RERA act?
RERA actually stands for Real Estate Regulatory Authority this act was proposed in 2016 by Real Estate Regulation and Development authority. This act was passed to protect the home purchasers from any frauds or loss and also getting boost in real estate investment. This bill of the Parliament of India Act was passed on March 16, 2016 by Rajya Sabha or Upper House. This act was in effect from May 1, 2016. Back then, there were only 52 of 90 sections that were notified. All of the other provisions came to effect from May 1, 2017.
RERA risks of unregistered property investment
When you buy any property that is registered under this act then you would get all of the information about the property. Builders working with the RERA act needs to get registered with the same. This also ensure that only authentic and genuine developers are working in the market. RERA act imposes strict penalty to the delayed projects this ensures that buyers get on time delivery. RERA promotes high standard of construction ensuring that only quality materials are used to construct the properties. And if by any mistake you invested into an unregistered properties then you are into big trouble. Here is how:
1- No legal protection
The RERA act has a section of clear guidelines for both buyers and sellers which guides both the parties at the time of any dispute. While any investment made in the unregistered property, the buyer will have minimal protection and would have to look after for the cost of legal battle for any grievance.
2- Illegal Purchase
Transaction on any of the unregistered property is considered as the illegal transaction for both buyers and sellers. This is why The RERA act has become a legal necessity. This is why it is important to buy any property with trusted and registered real estate developers.
3- Resale difficulties
Owning a house is such a great asset to add into your future plans. But when you have invested into the unregistered property then there can be a ton of difficulties that you will be facing for reselling it. Who would want to deal with an unauthorised property? This can lead you to sell it at much cheaper prices.
4- Lack of quality
To ensure the Buyer protection, RERA act separate section for quality compliance. But when you are interested for an unregistered property then it might be built up with the quality compromise materials and may not promise safety, security and longevity.
5- Risk of delay
The RERA act ensures that the buyers get on-time delivery and quality property, it was the primary reason why RERA was actually proposed. Registered projects under this act are bound to provide on-time delivery and provide transparency about the project otherwise they have to pay delay penalty. Unregistered projects can be really stressing and buyers can face financial loss.
6- Home loan challenges
There are time when home owners or buyers may need to apply for home loans. Banks and financial authorities would decline the loan request because of the unregistered property. Even if the loan is approved for the unregistered property then the home owner or buyer would have to pay the higher interest rates.
Investing for an unregistered RERA property can lead to many of the legal and financial issues. The lack of authenticity and increased chances of project delays would make it a high-risk investment. Because it is an illegal transaction you can even land into a big legal trouble. This is why it is important for you and your family to invest only into the RERA registered property.
