Gone are the days when the property buyers had to bear all the impacts whenever any real estate transaction would go awry. As for instance, if there are interruptions in constructions or the concerned property gets locked in several rows or even the builders makes significant changes in the proposed plan, it has always been the home buyers who have compromised things. Also, there have been many cases that have witnessed the developers to deflect funds obtained towards one project to other ones promising more profits, leaving the investors in trouble.
However, with the implementation of RERA from 1st May, 2017, the builders will have to put down minimum 70 per cent of the entire amount received from the buyers in a discreet account allocated for each project. So, in any case, the developer feels like altering the project layout after the sale, he will not be able to impose the changes without taking consent from the buyers. For postponed completion or any kind of payment compulsion, the builder will not only have to go through heavy penalties, but can also be levied with the cancellation of registration. The violation of any of the rules stated in the RERA act can prove to be havoc for the builders. A bliss to the buyers, RERA gives every freedom to the buyers to complain to the authority, in case the builders pull out of any of their commitments.
In case, the builder and the buyer get into any dispute within 120 days of the possession, appellate tribunals and regulatory bodies have to be formed to solve the qualms. At the same time, the buyers’ consent will always be needed for a promoter to change the layout’s design.
According to the law, the developer cannot charge extra price for the super built-up area; the buyer will only be liable to pay for the carpet area. Today’s practice that gets the buyers 900-1000 sq ft area on a booking of 1,300 sq ft area is expected to come to a sheer halt with this new act.
Te builders can only put projects on sale after they receive all the necessary clearances from the authority. RERA makes it mandatory for all the agents and the builders to register themselves with the supervisory body. It will not only put an end to all the misconducts done till date, but will also maintain the most required transparency in the process.
In a recent event by PROP (Professional Realtors of Pune) the guidelines of RERA were discussed, The main speaker Mr Ravi Varma mentioned some clauses partaking RERA. Ravi Verma is the current chairman of NAR-INDIA and has also served as a president of National Association of Realtors India for 5 years (2009 to 2010). He mentioned that once RERA comes into effect the real estate market will see significant growth as it favours the home buyers. The discussion also consisted of the rules and regulations to be followed by the realtors and how it would become convenient for the home buyers. The realtors will be allowed to sell only such properties that are registered under RERA.
Just like SEBI plays an important role in making security transactions in the capital market, RERA does the same in the real estate sector. Till date, the only thing the home buyers have to go by before making an investment is the property brochure provided by the builders and with this petite information in store, a buyer is never safe to put money in any project. Nevertheless, with RERA coming into the scene, it’s going to be much more transparent, leaving the buyers in total composure.
RERA makes it mandatory for every residential as well as commercial project having an area of over 500 square metres to be registered with the authority. Before the developers kick off any sale, they are bound to upload the project details on the RERA site, thereby leaving no lurch for the investors. No developer can start a pre launch with complete sanctions of the project. From the type of project for sale to the payment schedules, every nitty-gritty of the property needs to be uploaded on the site.
With such precision on board, RERA is actually expected to help the entire real estate sector to a significant extent. Right from the conceptualisation of the property to the execution of the same, RERA will deal with everything that holds the interests of the buyers as well as the builders.
To conclude, RERA provides the investors with a perfect means to look into the entire credential of the real estate property they are planning to purchase, thereby endeavouring to slash off every qualm and disbelief regarding the purchase.