The Indian Real Estate Industry is something that has come up as a home and source of income for many people. This industry is just full of things that can make the living feasible for the one. Particularly the Residential Sector has grown out well in this industry. In the past few years this sector has flipped a number of times and majorly it just went under deterioration. Poor quality construction, delayed delivery of projects, unorganized manner to work has opened up several aspects of being definitive.
Thanks to Real Estate Regulatory Act (RERA) in March 2016 that has come up with the bag of facilities to bring the paradigm shift in the sector and has brought with the aim to make this sector a little-regulated one. Well, it was brought up in 2016 but came into force on May 1, 2017, to open up the opportunities for the homebuyers and the effective method of property.
Now Coming on How RERA is Going to Revolutionize this Industry!
1. On Time Delivery of Projects:
Well yes this is something very much needed in this sector because the builders are not delivering the projects on time and think that this will work. But no, the delayed projects will not be acceptable from now. In case of project delays, buyers have the right to - (i) Seek withdrawal of booking with the entire amount to be refunded (ii) Go ahead with the project with the condition of getting interested from developer every month. Projects like Kalpataru Vista and Godrej Solitaire are to be connected with that are registered with RERA.
2. Property Registration is Must:
Now the project which is not registered with RERA will not be accepted as legal properties. The builders now have to register their projects under RERA with respective of every obligation. Without registration, the property cannot be sold. Everything regarding the project should be updated like the project details, construction progress, commencement/occupation and other certificates, sales details, etc.
3. Complete Financial Security:
100% financial security will be assured through an escrow account. Your investment will be considered safe as at least 70% of the buyers' money received for a particular project will be deposited in an escrow account. This will save their money from rolling into other things, that too is the reason for the delay of the projects. 2018 Real Estate market trends together with RERA will make the market compatible with every pocket.
4. Don’t Fall on Builders Words:
It is your responsibility that before buying property you should check the builder's background first and then proceeds to the property. Well through RERA you will now be able to opt for the properties of the builders have a good record and financial stability as well, not the one in the debt of loan.
5. No Promotions till Launched:
Earlier it was like any builder who has come up a project start promoting it, but from now the projects only registered with RERA will not be promoted. The unique RERA number has to be published with every advertisement/brochure or in any other kind of promotion. This will at least reduce some burden as not everyone will start promoting their projects with a thought of construction.
6. Strict Norms on Improper Constructions:
In the past few years, the complaints regarding the constructions have come up that the people are not getting exactly they have been promised. From now strict norms on building changes in case the builder modify the things, layout, plans etc. after booking the projects. Around 2/3rd of the buyers’ consent is necessary if any changes will be done.
7. Ask For Payment Plans:
Now the buyers can ask for the different payment plans and in fact, they can check for the facility of the payment plans as well. This is a kind of negligence or ignorance that we buyers often do but now the developers will tell you the different plans linked to the projects like flexible-payment, down-payment, possession-linked, and construction- linked plans.
8. Booking Amount will not Exceed 10%:
From now onwards you can book the property with the booking amount of just 10%. RERA will not accept the property exceeding the booking amount of 10%, if found guilty then imprisonment of 3 years will be charged.
9. Brokers Registration is Must:
The rules are not only for the builders but for the brokers as well. As being a commuter between the builders and the buyers, property brokers are also liable for all deliverables committed by the developers. Therefore they also need to register themselves with the regulatory authorities.
10. Pre-Launch not Allowed until Exists:
Now the market has turned extremely soft for the buyers and RERA has put a complete break on the pre-launch of the properties that don't even exist. Also with a Real Estate under GST, will add a spark to it.
While RERA has come up in many states so from now every builder, the broker will have to register with RERA and follow the proper guidelines give it. It will now be buyers friendly market and no doubt Real Estate will get some relief after long sluggish time.