By Over the years, India’s real estate market has only become bigger. However, examples involving building delays and increasing overhead costs have led to strict measures. A controlling structure has been developed to prevent loopholes in the system.
The eagerly anticipated Real Estate Regulation and Development Act (RERA) came to be on May 1st, 2017 in an effort to increase investments in the real estate industry and safeguard homebuyers. Initially it had left people wondering, “What is RERA in real estate?”. Numerous assertions have been made regarding RERA, including the claim that it will radically alter how the property market functions and that it will make brokers answerable to homebuyers. Under RERA, the relevant regulatory bodies in every state and union territory will be in charge of overseeing all real estate projects.
What is RERA?
Every property in Maharashtra that is larger than 500 square metres or eight units must be RERA registered under Maha RERA. Real estate firms in Pune along with other cities will have a 90-day window to register their active projects. Additionally, in order to provide potential homeowners a chance to follow the development of various projects and maintain openness, real estate companies are required to regularly update information about these projects on the Maha RERA website. Maha RERA permits registration of real estate agents as well as companies for a period of up to five years. The numerous RERA rules and regulations are in place to safeguard the interests of investors.
Why RERA is important?
- The property sector in our country needed a law such as RERA to regain its reputation. Given that it is one of the key sources of wealth in our country, some reputable government authority was needed to control developers.
- RERA will level the playing field for developers and for you as consumers, reducing the risks that you might’ve previously experienced.
- RERA is crucial since it will have an impact on more than 76,000 enterprises across the country. Numerous things are now required by this law, including the formal registration of property brokers and projects, which is now compulsory.
- As a buyer, you will be entitled to all information regarding a real estate project, as well as the right to obtain all project-related papers. RERA creates a state agency to oversee both commercial and residential property deals.
- You can rest easy knowing that RERA will guarantee that the project is completed on time.
- RERA will ensure transparency by ensuring greater accuracy between developers and buyers.
RERA’s Impact
- All brokers must register with the state-level regulatory body for real estate.
- Brokers in the unorganised sector must obtain a licence in order to continue operating.
- Making a code of conduct for agents is required, and they must make all of their transactions officially to stop unfair business practices.
- Because future sales are now only feasible after registration, developers’ costs will go up.
The organised real estate market will also be impacted by RERA. For instance, an individual investor who makes an investment in a project that is still under construction with an assured return will be provided with extensive information regarding the financial standing of the developer providing the certain return.
The regulators are empowered by this Act to penalise and sentence defaulters for a maximum of three years.
Usually the RERA approval process lasts 30 days to get certified. However, factors might cause a delay or it could even come earlier.
Benefits of RERA
- Simplified Procedures: The RERA registration in each state and union territory will be done online. Consumers will profit and save time if documentation procedures are made simple.
- Transparency: With the launch of the RERA website, you may follow the progress of these projects from any location in the world. They won’t need to worry over your financial investments because all plan designs and supporting documentation will be uploaded to the website.
- Timely Possessions: The fear of delays in construction is the main concern buyers have when buying in Indian real estate assets. They won’t have any possession-related issues, thanks to RERA.
- Trustworthy: A robust and authoritative RERA implementation will foster greater consumer and developer trust, which will in turn spur more investment.
- Redressal of Grievances: With the implementation of RERA, you will have a formal authority to address their complaints and grievances relating to their investments in real estate. You will be able to act quickly and make wiser decisions as a result.
An expanding economy benefits greatly from a positive policy shift. With RERA poised to alter the real estate industry, the future looks bright for the Indian real estate market.
