In India buying a home is a big financial decision. In order to unburden the home buyers, the government offers benefits for home buyers. For instance, a first time homebuyer can claim more tax deduction when buying an under-construction property rather than a ready property. These benefits vary according to the property type, nature of construction and home loan amount. Before investing in a home one must be aware about the laws that could be beneficial for them, because this is one of the most important lifetime asset they are investing in.
A list of important laws one needs to be aware of before investing.
Section 80C and Section 24: A regular home loan offers various tax benefits. These include a deduction of up to Rs 1.5 lakh on the principal repayment under section 80C of the income tax Act and up to Rs 2 lakh on the interest paid under section 24 in a single financial year.
Right to Information About the Property
This is one main advantage of the RERA act in favor of the home buyer. This information can help you on multiple fronts. The developer is entitled to share all the details regarding the project such as plan layout, plan of execution, completion stages, the status of competition, etc.
Standardized Carpet Area
Each builder had his own formula to calculate the carpet area of a property. But RERA has a standardized version of how to calculate the carpet area. RERA defines carpet area as,
‘the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment’.
With this definition, the builders need to clarify how much carpet area they are offering as the price of a property in real estate in India is dependent on the carpet area.
Builders Will Be Held Responsible for Any Defect/Fault in The Construction
Under the RERA act if there is any defect or fault in the construction of your apartment then the repairing has to be done by the real estate developer. This is for the structural defect in the property for up to 5 years from the date of possession. The repairing has to be done within 30 days once the fault is detected.
Grievances Will Be Addressed and Solved Quickly
In case you are dissatisfied with the construction or if there is any other issue with your commercial property or residential property in Maharashtra then you can approach the Appellate Tribunal. This tribunal will address your case within 60 days.
Builders Won’t Be Able to Delay the Projects
Under the RERA act, each real estate developer needs to give a delivery date for the handover of the possession of the apartments. If the builder is not able to complete the project until the delivery date, then they will have to face penalties.
The implementations of these laws brings in transparency and builds a trust for the best and
with a recognized 18 year old legacy, with over 1500 happy families and with a commitment that has always been praised, we at Gagan Developers believe in educating our consumers before they invest in a home.