After Rajya Sabha came up with the new Regulation and Development Bill in 2015, both the home buyers and the developers have seemed to be highly benefitted with this much elevated move. Apart from alleviating the home buyers’ concerns, the Real Estate Regulation Act (RERA) has also brought in huge transparency in the entire real estate sector.
Bringing much optimism to the investors and the builders alike, this improvised real estate bill is expected to stride out a long run and perk up the fund flux into the sector. The growth of the industry is highly reliant on the confidence of the home buyers and RERA, as a much appreciated amendment, has not only heightened their belief, but has also eased their anxiety to a great extent.
Here are some of the obvious effects of RERA that are widely appreciated by one and all.
Approval is mandatory- Suppose, you are looking for an investment in Pune and according to the new bill, your application, as a builder, will only be accepted when there would be all the essential approvals to your conferral. Nevertheless, the authority has all the clout to reject the plea, in case there is minimal incongruity found in the process. It will not only steer to a required increase in the investment of the builder, but will also improve his interest cost.
Listing of project – After the implementation of RERA, it has become mandatory for every developer (having a land of minimum of 500 square meters) to have their projects registered under the Real Estate Regulatory Authority. As the listing process is likely to take a considerable amount of time, the builder will be unable to place the entity on sale, thereby picking up his interest cost.
An overall change in the system – With the new bill suggesting a world of changes in the industry, the builders are bound to go through a number of alterations in the way real estate has worked till date. Apart from customizing their dealers and constructors, they have also become quite strict on the appointment of experienced staffs and top-notch professionals, which has led to nothing but the improvement of the overall real estate business.
Insurance for land is essential – As per the new inclusions, every developer has to grab insurance for the land as well as for the erection. Although, the insurance companies are still not aware of the exact type of cover declared by RERA, but they are likely to get acquainted soon.
An improved liability for five years- Gone are those days when the builders were the only body to repair all the damages, in case there was any defect within five years from the date of possession. However, after the implementation of RERA, both the homebuyers and the builders are accountable for the same, which has imparted much precision to the process. The new projects in Pune are now completely under the surveillance of RERA.
Any delay and it has to face the impact – The new act says that a single delay by the developer may make him endure a lot! Before the execution of the act, it was only the buyers who had to undergo all the torments even if the builders were at fault. The new RERA act makes sure that the developers are accountable for every commitment they make. The property’s possession date cannot be changed under any circumstances or the builder has to face the penalty for the same. Also, any sort of phony activity by the builders is going to be completely banned. As for example, the developers doing fake advertisements for the properties in Pune are likely to answer for the unsanctioned ventures.
According to the top honchos in the industry, all the loop holes in the system will get fixed shortly as a strong impact of RERA and the entire sector would witness a sturdy growth in the recent years.