Real Estate in India contributes 10% to GDP every year, yet it is one of the most unorganized sectors. There is a big gap between buyers and builders.
Buyers like us often feel wrecked and vexed while purchasing or selling any property due to the vicious circle of builders. But with RERA India, this vicious circle of builders will break and buyers will experience increased transparency in the real estate sector.
RERA aims to bring a proper mechanism in the real estate sector with rules and regulations that guard the interest of buyers.
The well-defined body will cut the conflict between promoters and buyers. The Real Estate Regulatory Act 2016 has brought cheers on the face of buyers and has been envisioned as the best landmark reform in the realty sector till now.
RERA will play an integral part in MPD 2021, as it will propel the mission “Housing for all by 2021.
Under RERA each state and union territory will have a regulatory authority which will address the concerns like delayed possessions, frauds, change layout plans, skyrocket prices and much more.
Often we have come across a situation where we have to pay a token amount while buying any residential and commercial property and the rest of the amount within 45 days without any formal communication. And if one fails to pay the remaining amount, token money is never returned to the buyer.
With RERA India, developers will have to adhere to all the rules and regulations which pay a special focus on timely completion of projects. Any sort of delay will punish the builders in the form of fines and penalties. RERA is a welcome change in land development reforms. The government has also planned to introduce ‘digitisation of land and land titles’ which means the land title would change into a registry number and the number will then tell the real owner of the land. The step will be a great help in clearing land insurance title.
This consumer friendly act will be beneficial to the buyers in the following ways:
- The act has made it mandatory for the developers to be registered under RERA along with all the details of their past five years projects. The details will be uploaded on the official website of RERA India. Thus helping buyers to draw a comparison between just and unjust builders.
- The promoters will show all the information on the layout plan and for any change in the layout plan, the promoter will have to seek approval from the majority of buyers.
- The promoter will have to keep up an escrow account in which 50% of the project’s funds will be maintained. Thus protecting buyers funds from being used in other projects.
- Any property to be sold on the basis of the defined carpet area.
The buyer under RERA can make an informed decision without any fear of being trapped in any wrong deal.