What is RERA Act

Apr 27, 2022

The RERA Act, like other legislation, has some legalese. Certain legal phrases are difficult for the average person to comprehend. We attempt to make these legal phrases as simple as possible for you by providing a ready-to-use explanation.

Let us explore some of the real estate jargon in the RERA Act.

 

Carpet Area

The carpet area is defined by the RERA Act as the “net usable floor space of an apartment.” External walls, lifts, balconies, and other areas are not included in the carpet area. Internal walls, on the other hand, are included in the carpet area definition. Before RERA, there was no legal definition of carpet area, and as a result, there was a lot of ambiguity. This ambiguity was frequently exploited by the builders. Homebuyers may now feel easy knowing that there is a clear definition in place.

Super Built-Up Area

Before we can comprehend a super built-up area, we must first comprehend the notion of a built-up area. All parts of your unit are included in the built-up area (carpet area + balconies, walls, etc.). The super built-up area of your building comprises the built-up area as well as your proportional part of the shared spaces. If your building contains communal paths, parks, or other amenities, they would be included in the phrase super built-up area in proportion to your share of them.

Typical common areas included during a super built-up area are:

  • Staircases
  • Lobbies
  • Lifts
  • Clubhouse
  • Security rooms

However, the super built-up area doesn’t include the following:

  • Underground water facilities.
  • Open swimming pools and skywalks
  • Open sports amenities.
  • Occupancy Certificate

 

An occupancy certificate verifies that the structure is safe to occupy and that all laws and regulations have been followed throughout construction. A municipal government, agency, or planning body issues it. The occupancy certificate must be obtained by the building’s developer. When getting public utility hookups, you’ll need to provide your occupancy certificate. A developer typically applies for an occupancy certificate within 30 days of the project’s completion. The following papers should be provided by the developer or the individual asking for an occupation certificate:

  • Project commencement certificate
  • Project completion certificate
  • NOCs for fire and pollution
  • Sanctioned plan of the building.
  • RERA Registration Number

 

RERA Registration Number

RERA requires all real estate developers to register with the agency. The RERA registration serves as a seal of approval. Real-estate developers receive a RERA registration number after the RERA registration procedure is completed. This RERA registration number serves as proof of validity, indicating that the project is legitimate and that consumers may trust it.

 

Floor Space Index

The floor space index, commonly known as the floor area ratio, is the proportion of the project’s built-up area to its total land area. The total area that may be created on a block of land is determined by the floor space index. The floor space index is regulated by the development control regulation department and the Indian building code. When calculating the floor space index, criteria such as the kind of building, the location in which it is located, and the facilities provided in the building are considered. The floor space index aids in the preservation of the open space to closed space ratio and the long-term growth of cities.

 

Leasehold Property

A leasehold property has been acquired on lease. Builders and real estate developers construct their projects on either leasehold or freehold land. Typically, leasehold properties are leased for 30 to 99 years. They become freehold properties once the leased period expires. Buyers prefer freehold homes over leasehold ones because leased land is subject to various constraints.

 

Freehold Property

Absolute ownership lies with the owner of a freehold property. For the sake of project development, the developer may acquire the same from the owner. Transferring ownership of a freehold property does not require statutory approval, unlike leasehold properties. Loans for freehold homes are easy to get because there are no limits.

 

Pre-Launch Properties

You’ve probably heard of pre-launch properties and pre-launch deals. A pre-launch property is one whose launch has been announced before the start of the approval procedure. Typically, builders request reduced pre-launch offers from consumers, who might be repeat customers or through real estate brokers. Such offers and properties pique the interest of potential purchasers since they are accessible at lower prices than market value.

These are a few real-estate words or legal jargon that are often used. These phrases are also used in the RERA Act’s requirements. As a result, it is critical that you, as a consumer, understand this jargon in order to make an informed decision when purchasing any property.

People who read this text also Consult a Lawyer about RERA Act

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