All You Need to Know About RERASeptember 12, 2018
Of late we are hearing a lot about RERA. What is RERA or Real Estate Regulatory Authority? Let us understand a bit in detail about RERA and how it impacts a home buyer.
Changes are happening everywhere in the economy. Whether it is being in the commodity prices, or land value, Fuel charges to cinema tickets, changes are happening day by day. There are some industries which government feels the changes should come only through a process or through a regulatory body. The prime reason is to protect consumer interest and to avoid exploitation of consumers. Some of The best examples are Telecom Regulatory Authority of India (TRAI), Reserve Bank of India (RBI) and Security and Exchange Board of India (SEBI). The prime motive of these bodies is to ensure that there is no crime or fraud is committed by the respected industries.
Real Estate industry was lacking a regulatory body similar to SEBI, RBI or TRAI. In the month of March 2017, an act was passed out to establish an authority for the reality sector. This act was named as Real Estate Regulatory Authority (RERA). RERA came into force from May 2017. The act was passed primarily to ensure that justice for the end consumer and proper practices should be followed in the real-estate sector by the developers.
Below are some of the important benefits home buyers gains after the implementation of RERA;
• Suppose a developer makes any changes to the project, the customer should be informed in advance. If the changes are major, two-thirds of the total allottees must provide a prior written consent before the builder proceeds further
• All the projects should be registered with RERA, even the projects in the construction phase and before the builder start promoting the project
• RERA ensures that the builder must provide timelines for phase wise completion. Whatever details the builder or developer is promoting must have in the project and the advertising campaigns should carry clear and comprehensive information about the projects
• RERA ensures projects are delivered on time. Developers must stick to their committed timelines for project completion and delivery.
• Promoters need to provide RERA with regular progress updates, and customers can update themselves by checking the same in RERA portal
• Buying decision can be faster. Processes would be more transparent and will become easier for the Home Buyer. Home loans will be easier for RERA approved projects
• RERA ensures accountability both for Home buyers and Developers and eventually this will help industry to be more disciplined
• Home buyers and Developers will now have a governing body to look up to the disputes. RERA will be helping in any disputes with respect to the project.
Hope RERA will be active in all the states soon and a total facelift and more disciplined reality sector is on its way!!