The real estate sector has always been known for its booming calibre. Yet this attribute was always hindered due to lack of transparency in buying and selling of properties. So to tackle this equation, in May 2017, RERA or Real Estate Regulatory Authority was introduced and implemented that was supposed to facilitate transparency in the home buying process and to try and eliminate existing discordance and problems in this sector.
How did RERA change the Real Estate market?
RERA aims to protect the home purchasers and boosts the real estate investments. Since its introduction, RERA has helped build a vast real estate commerce across the country and bridged the gap between buyers and sellers. It has helped show significant growth in buyer sentiment, new launches, quality construction, transparent dealings and price appreciation. It has boosted newer project developments and since the prices tanked down in the Covid era, it encouraged more buyers to buy properties with further clarity.
What are the benefits of RERA?
One of the biggest ways in which RERA has opened the door for the real estate landscape is that it has reduced project delays and mis-selling. Carrying out RERA demands builders to specify their project completion date and any delay in delivering to this date shall result in penalties to them. It is applicable to both residential and commercial properties.
It’s division into smaller bodies in different states has promised more efficiency, accountability and transparency in the real estate market.
How does RERA help buyers?
RERA provides developers with a standardised price for a specific carpet area. Before RERA, developers had their own way of estimating the price of the residential property that may or may not be akin to the interest and the budget of the buyers. But with this act, buyers are more comfortable since they can easily figure out the cost disbursement and there’s no deception in the same.
RTI about property:
RERA projects require builders to disclose their papers and legal obligations to buyers before the purchase on their official website and update it on a regular basis. There will be one model sale agreement between builders and buyers. 70% of the money they take from the buyers at the time of purchase needs to be held in a separate bank account and can only be used for construction purposes.This means that there can be no misleading, treachery or money laundering and the process of handing over the projects transitions smoothly. And in any case, if any discrepancy occurs in your title deed during possession, buyers can immediately ask for compensation from the developers.
Projects can’t be delayed:
Projects registered under RERA have to give buyers a fixed timeline and the due date for possession of the apartments. If failed to do so, the developer has to pay penalties. They also have to resolve disputes within 120 days of it being filed. Major alterations can only proceed with home buyers and investors consent and not solely on the builder’s whims and fancies.
How to make sure that the property is RERA Compliant?
1. If the area of the property is more than 500 sq m, the builders should register it under RERA Act before launching or advertising a project on that particular property.
2. Builders must provide proof that 70% of the total payment has been deposited by them into a discrete escrow account instead of using it for some other investment.
3. Builders must get all the necessary consents before advertising a new project. Discounts for early bird bookings and pre-launch offers will not be there anymore.
As someone who holds interest in buying, selecting a RERA project means making a secure investment and eliminating as many possible hassles and risks as one can. It makes it easier to apply for a home loan and is a cost effective process since prices are as per square feet. It is making the real estate sector more professional and adept.