The real estate sector is undergoing a major overhaul with the implementation of RERA. The RERA act seeks to increase transparency and accountability within the real estate sector, by setting up a mechanism to facilitate and regulate the sale and purchase of commercial and residential properties. The law holds the key to the future growth of the Indian real estate as it has the potential to improve overall transparency and accountability, to clean up the sector. The implementation of RERA is expected to boost the demand in the real estate industry.
RERA will not only cover the new launches but also on-going the projects. For ongoing projects that have not received completion certificate in specified time, developers have to make public the original sanctioned plans with specifications and changes made later, total amount collected from allottees, money used, original timeline for completion and the time period within which the developer undertakes to complete the project, certified by the necessary authorities.
The real estate market governed by RERA will make it a buyer’s paradise as it will protect customer’s interests on all fronts and help them make their purchase decisions with increased confidence.
Before the introduction of RERA, the risk on account of delays, quality, title, and changes in the project were all borne by the customer. As a result, most customers had to bear the cost of some sort of default. Post RERA, these costs are to be borne by the developer.
Home buyers are entitled to information on various plans, specifications and other data. They are to be appraised of stage wise time schedule of completion of the project, including provisions for water, sanitation, electricity and other amenities.
Further, buyers can claim refund of amount paid along with interest if the promoter is not able to handover the property as per timelines committed. They are also entitled to necessary documents and plans at the time of possession.
Regulatory Authorities will be established in every state, which will have the responsibility to register and regulate real estate projects and real estate agents registered under this Act. The authority will maintain a website for public viewing, of all real estate projects for which registration has been given.
RERA makes it imperative for developers to register with the authority and meet various obligations to fulfill his role. The promoter is obligated to rectify any structural damage or defects in quality over the period of 5 years after handing possession.
Promoters must also uphold true information in their advertisements, communication and model apartments. They will be liable to return the entire investment with interest to the buyer in the case of false promises. Developers will also have to pay rent or compensation to buyers in case the project is delayed.
Very often home buyers and investors put their hard earned money in properties, trusting brokers and middlemen. Unfortunately some may be cheated by unscrupulous brokers and sold properties under dispute or with unclear titles, for financial gain. RERA will put an end to such practices and give a fillip to the real estate sector with an ambience of trust and credible transactions.
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