RERA or Real Estate (Regulation and Development) Act, a law which has been raised to standardize the Real Estate sector and to generate some of the guidelines so to make this sector more clear, which was not from long. The RERA is a welcome step. RERA is expected to build in the responsibility, transparency and effectiveness in the real estate market.
It was passed in March 2016 in Parliament then it received the Presidential nod on 25 March 2016. But it came into action on May 1, 2017, truly a big step for real estate. The act has come out to be a common platform for the buyers, producers and for the mediators engaged in it.
The bill has been roll in to make a complete check on the Residential and Commercial real estate properties. The basic idea behind this bill is to clear the market and to promote the true developers and make an exit poll for the filthy developers.
What steps has been taken for the developers?
- From now onwards the developers will have to deposit 70% of the money collected from the buyers into a separate bank account for the projects they have booked for a new apartment.
- All the projects will be registered with the regulator.
- Earlier, as many customers has faced the problem of long delays, from now in case of delays the developers will now pay 2% interest above the MCLR (marginal cost of lending rate) of SBI.
- In RERA all the projects will be closely monitored, in this case the fall of delays might be seen.
- Developers will now have to provide complete details, timeline and the layout plan to make very detail clear to the customer.
NOTE: In delay of payments the buyers will also have to bear the same cost.
How the buyers will get benefited?
This is the sector which does give number of opportunities but here the buyer is solely responsible for his investment. Basically this business runs on ‘Buyer Beware’, which means that whatever decisions the buyer will make, he holds the complete ground for it.
Previously the real estate broker or the developer use to give some value added services to the customer and a kind of security to their customers. But today they give no value added services and make a long delay too. But hopefully RERA Guidelines will bring a big change now.
It has far too long period for the unorganized way of real estate, which has been impeding from last few years but now the world would see a new paradigm with its implementation. Not just being a facilitator between the buyers and the sellers, brokers will now be having a big responsibility for each detail of the project.
But it is not at all like that complete sector is blemished, there are some top trust worthy companies like IndRealEstates, who delivers you the promising projects with complete trust.
What comes next?
Basically, the Act marks the immense strong step in the sector. Till now consumers were protected by the State’s consumer protection measure, where justice is next to impossible, if someone gets it is a long culminating process. But RERA is far more focused which will surely empower the consumer’s credibility.
It can be noted that this bill will act as a model and also each state has to notify separately land as a concurrent subject. This has somehow given a ray of protection to the customers by setting up a regulator and launching an awareness campaign to empower customer.
I must say this is one of the best things happened to the real estate sector. Hope that this sector will make a real advantage for the investors. So the coming projects will be full of boom and sparks where the investment will only grow.
The implementation of the RERA-2016 is widely expected to bridge the trust deficit and will help the country’s economy to grow. This will be best for those who are searching for long term investment in this sector. The beginning might be tough but the journey will be driven very smooth.
In this transparent process, not only the customer interest will be safe but also builder will earn huge benefits. For the real estate market that is snowed under by overcapacity, this will surely be a blessing in cloak!
