Freehold property refers to a type of real estate ownership in which the owner has complete ownership rights over the property, including the land on which it is built, and has the right to sell, transfer, or lease the property as they see fit. In other words, the owner of a freehold property has absolute control over the property and can use it for any purpose, subject to local laws and regulations.
On the other hand, RERA stands for the Real Estate (Regulation and Development) Act, which is a law enacted by the Indian government in 2016 to regulate the real estate sector and protect the interests of homebuyers. RERA aims to bring transparency, accountability, and efficiency to the real estate sector by setting up a regulatory authority for the same.
Under RERA, developers are required to register their projects with the regulatory authority and provide complete details about the project, including the land status, approvals, timelines, and financials. They are also required to deposit a certain percentage of the project cost in a designated bank account to ensure that the project is completed on time. Homebuyers, on the other hand, are protected against unfair practices and fraudulent activities by developers through RERA, which ensures timely delivery of the project, quality of construction, and adherence to other legal requirements.
The freehold property is equally a good option for investment with thorough vigilance.
Here are some common myths associated with freehold property:
- Unlimited Ownership Rights: One common myth is that owning a freehold property means unlimited rights over the land. While freehold does grant significant rights, there may still be some restrictions imposed by local regulations or zoning laws.
- No Fees or Obligations: Some individuals mistakenly believe that freehold ownership absolves them of any fees or obligations. However, property taxes and other maintenance fees may still apply.
- Exemption from Government Regulations: Another misconception is that freehold properties are exempt from government regulations. In reality, all properties, including freehold, are subject to laws and regulations imposed by the government.
- Immunity to Market Fluctuations: It’s a myth to think that freehold properties are immune to market fluctuations. Property values can still be influenced by economic conditions, demand, and other market forces.
- Complete Control Over Land Usage: While freehold ownership provides a significant degree of control, there may still be restrictions on land usage based on zoning regulations, environmental laws, or other local ordinances.
- Ease of Selling at Any Time: Some believe that selling a freehold property is always easy. However, market conditions, property location, and economic factors can impact the ease of selling any property.
- No Need for Legal Assistance: It’s a myth to think that you don’t need legal assistance when dealing with freehold properties. Legal complexities can arise during transactions, and it’s advisable to seek professional advice.
- Automatic Increase in Value: There’s a misconception that freehold properties will automatically appreciate. While real estate can be a good investment, value appreciation depends on various factors including market trends, development in the area, and economic conditions.
It’s important for individuals to thoroughly research and understand the legal and financial aspects of freehold property ownership, dispelling any myths to make informed decisions. Consulting with legal and real estate professionals can help clarify any misconceptions and provide accurate information.