The Indian real estate sector has made great strides in the last few decades. From a largely unorganized and unregulated sector, he has become one of the world’s largest and most resilient real estate industries. Today he is one of the most important contributors to the country’s GDP. It is also one of the countries that employs the most unskilled and semi-skilled workers. However, the country’s real estate sector experienced its fair share of ups and downs during this period. There have been times when the sector has seen booms, and there have been times when it has suffered slowdowns. Delayed project deliveries, rising costs, poor quality construction, changing project plans without informing those assigned to them, project cancellations, and disgruntled investors are common practices. was A severe lack of trust was building among customers for the sector as a whole.
There has been a long-standing end-user request for regulators. The government responded to this request in his 2016 when the Real Estate Regulation Act (RERA) was enacted. RERA’s main objective was to curb fraud within the sector and protect the rights of buyers. Provisions aimed at builders and developers have been balanced.
RERA requires developers to register their projects with the RERA authorities if they plan to have more than 500 square meters or eight or more apartments in the area. must be stated in our advertising and communications. All information regarding the project, developer, land status, approvals and project completion schedule must be referenced and regularly updated on the agency’s website. RERA will also direct builders to hold 70% of the project’s receivables in an escrow account. This amount can only be used for project purposes.
Also Read: How is the Indian Real Estate Industry Currently Positioned to Begin its Next Growth Journey?
Before RERA, there were so many versions and interpretations of areas: carpet areas, built-up areas, super-built-up areas, salable areas. RERA has clearly defined and unambiguous carpet area terminology. The law also provides for penalties for developers and interest paid to buyers if the project is delayed. There are various other measures and provisions to ensure the streamlining of the project.
Transparency
Prior to RERA, the real estate sector was opaque. Customers had to rely on the developer’s word and brochures and advertisements. Most builders didn’t bother to notify their existing clients when there were any changes in project plans or details. However, after the enactment of RERA, the developer will be required to provide comprehensive information about the project on the agency’s website. In the event of any changes in the project plan, the developer must immediately update the information on the website. Customers can stay up-to-date on the project and know the exact status of the project from her RERA website anytime, anywhere.
timely project completion
In the pre-RERA era, project delays were common. There were no penal provisions for developers. Funds from one project were often diverted to another, often leading to financial difficulties for the project and delayed project delivery. You can prevent this by providing an escrow account for your project. RERA has financial penalties for developers for delays. Therefore, developers are closely monitoring project timelines.
dispute resolution
As mentioned above, there was a lot of fraud in the real estate industry before RERA was enacted. False promises, altered project plans, poor construction quality, overbilling, and late deliveries were common. Today, RERA offers fast dispute resolution for all issues faced by homebuyers.
Also Read: Home Buying Checklist – Important Points For First Time Home Buyers To Consider Before Investing
Increased Buyer Confidence
As projects delayed and talk of cheating by developers began to emerge, homebuyers began to lose confidence in the sector. Entire sectors suffered due to cheating by a small number of developers. This is reflected in the decline in sector sales. RERA has helped the real estate sector regain buyer confidence. Buyers can be confident that the information provided by builders is true and transparent. No need to worry about diversion of funds from one project to another. Buyers can now rest assured that they are entitled to protect their rights and interests. The new confidence of buyers and increased sales are proof of this fact.
RERA has a comprehensive framework to protect the rights of real estate customers. Clients can now relax and invest in the sector without fear. For some builders, RERA initially seemed like a stumbling block as they had to invest time and resources to upload a lot of information to the agency’s website, leaving little room for fiddling with the information. rice field. The increase in customer and sales confidence proved that it was indeed a facilitator.
Ameet Hede, VP-REPL (Rudrabhishek Enterprises Ltd)