The Indian government has come up with a game changing modification in the real estate arena of India. This game changing improvement is called the Real Estate (Regulation & development) Act or RERA. One of the most important objectives of this Act is bringing about accountability, transparency and further enhancing professionalism in the industry for real estate in India. Safeguarding the interest of the consumers is also one of the prime objectives of this Act. One thing that is worth noting is that this Act brings the entire real estate arena within a certain regulatory environment, putting forward the liberties and the liabilities of a real estate developer and presenting the most effective and useful grievance redress system to the purchaser.
At RERA Consultants, we are completely dedicated to spreading knowledge and information about this new law amongst all those who are related to the field of real estate including developers, buyers, architects, agents and chartered accountants. We take pride in launching CRAI or the Campaign for RERA Awareness in India for creating awareness regarding the RERA Act. CRAI looks forward to empowering the consumers while enhancing the credibility of the developers. Our main objective is creating a common podium for the sellers, buyers and the intermediaries working in the real estate sector. Our main focus is on highlighting up to date and relevant information about RERA Registered Projects and Agents throughout the different states of India.
Purchasing property is a vital decision. It requires a lot of thinking and planning. There are individuals who put in the savings of their entire life into buying a house. Investing in a house is almost like a jump of faith decision especially if the property developer is a non-submissive player. By way of CRAI, we have made sincere efforts towards bringing the well-organized developers of all the states with RERA registration into the spotlight. We also aim towards bringing those states into the spotlight that are very well-equipped to execute the different requirements of the property buyers. Our efforts in this direction will help in bridging the trust insufficiency among the customers while spreading awareness about buying only RERA registered assignments among the property buyers.
How will the Property Buyers be Benefitted by the RERA?
RERA or the Real Estate (Regulation and Development) Act is basically a law that looks forward to regulating and standardizing the real estate field where there is the need for transparency and uniform guidelines since a very long time. RERA regulates several facets of real estate and at the same time safeguards the buyers’ interests. However, the rules and the regulations on papers might not be advantageous to the consumers unless and until the people are aware about them. It is important for people to be fully aware of the provisions of getting benefits from the RERA. Some of the basic advantages that people can fetch from RERA are:
The Act makes the registration of all upcoming and ongoing real estate development projects mandatory prior to marketing and advertising.
- The home buyers only have to make payments for the carpet areas.
The Act makes it obligatory for the developers to deposit 70% of their real estate development project funds into an escrow account.
Property developers are prohibited from charging more than 10% in the form of advance from the allotees without getting into the written sale agreement.
Fully dedicated and sincere real estate appellate tribunals shall be appointed for adjudicating cases within a time span of 60 days.
Developers need to obtain a written consent for making any structural alterations to the already approved plans. This written consent needs to be obtained from minimum 2/3rd of the allotees.
It has also been stated by RERA that structural defects in a property should be brought to the notice of the developers within the time span of five years. The structural defects reported within this time span need to be rectified and worked upon by the promoters and that too completely free of cost.
The RERA makes it mandatory for property developers to update and maintain their websites on a regular basis and also provide the details of RERA registration.
Developers non-compliant to RERA shall be imprisoned for three years or they may have to pay a fine extending up to 10% of the cost of the project or both.
RERA registration is essential for the real estate agents as well.
The Bottom Line
RERA definitely has an important role to play in the real estate arena of India. This Act has raised the hopes of the homebuyers and it has good chances of enhancing full-fledged activity in the field of property development. This might further result in more supplies throughout the real estate market. The Act will eventually bring-in the much required confidence for infusing more investment which in turn would help in stabilizing the prices of homes.
So, let us come together for spreading awareness among relatives and friends for helping them in understanding the real estate sector of India in the easiest way possible.