Protecting Investments and Users in the Realty Sector

Since the establishment of the Real Estate Regulatory Authority (RERA), the real estate sector has seen significant changes, particularly in the protection of both investors and end users. RERA has taken stringent measures against builders and developers engaged in fraudulent practices. However, many builders still attempt to charge customers excessive prices for properties. Despite RERA’s clear guidelines that all charges should be included in the price per square foot, some builders continue to impose additional fees, such as the Prime Location Charge (PLC).

Hidden Costs in Property Deals

Experts emphasize the importance of clarity regarding hidden costs when booking a property. Buyers are advised to ensure that the quoted price is all-inclusive and that no additional fees will be requested later. Traditionally, builders would ask for External Development Charges (EDC) and Internal Development Charges (IDC) at various stages of a project. Following RERA’s intervention, these charges are now generally included in the property price.

Unjustified Charges for Parking and Membership

In many private projects, builders charge substantial fees for both open and covered parking spaces, often ranging from ₹1.5 lakh to ₹5 lakh. Similarly, club membership fees are typically demanded at comparable rates. RERA has explicitly stated that builders cannot levy such charges on customers.

Additional Charges for Electrification

The need for extra lighting and wiring in common areas, such as parks and pathways, leads to additional costs that builders often pass on to buyers. Customers should understand their rights and may demand that builders cover these expenses, provided this condition is stipulated in the buyer agreement at the time of booking.

Dealing with Late Payment Penalties

With the increasing number of homebuyers utilizing loans, the implications of late payment penalties have come to the forefront. Banks typically disburse funds according to the construction schedule, but delays can lead builders to impose penalties on buyers. This can result in significant financial burdens, especially if buyers are threatened with cancellation of their bookings. It is crucial for buyers to negotiate their agreements carefully to safeguard their interests and ensure a fair deal.

Conclusion: Awareness is Key for Homebuyers

As the real estate market continues to evolve, it is imperative for homebuyers to remain vigilant. Understanding the regulations set forth by RERA and being proactive about potential hidden costs can lead to a more secure and satisfactory property purchasing experience.