Why is RERA important for the developers and the buyers?
The Real Estate Regulation (and Development) Act or RERA is an act for regulation and promotion of the real estate sector to ensure the sale of apartment, plot, building, or any other form of real-estate in an efficient and transparent manner. The real estate market in India is expanding with every passing day, and instances of project delays and rising overhead costs have called for strict measures to ensure that a governing mechanism is established to avoid inconsistency in the industry.
The major purpose of the RERA is to protect the interest of consumers, at the same time, bringing all the stakeholders under check, and it was enacted by the Parliament in May 2016, and the Act has come into effect from 1st May 2017 across India. According to this Act, it is obligatory for the developers to get all approvals from various government agencies before launching a project and disclose all the information on the website that will be set up by the respective state RERA regulatory authority.
Why is RERA important?
The implementation of RERA is expected to provide benefits to both the homebuyers and the developers. This Act will encourage the builders to timely deliver the projects and protect buyers from fraud sellers. It would, in turn, help the developers to gain from the increased confidence of the consumers in a regulated environment. Benefits that RERA provides to the real estate developers:
- RERA makes it compulsory for the consumers to take possession of the unit within two months of issuance of the occupancy certificate; this will help decrease the number of unoccupied properties.
- As per RERA, consumers are required to make the payments on time to the real estate developer as per the agreement. Apart from that, they should also pay the share of registration charges, municipal taxes, maintenance charges, ground rent, electricity charges, water supply charges, etc.
3. It is because of RERA that now the consumers have revived their faith in a builder, increasing the investment in real-estate by the consumers. Not only has RERA increased domestic investments, but it has also lead to increased foreign investment.
4. As per the RERA rules, builders have to invest 70% of the amount collected from the consumers in the planned project; thus there will be, very little scope of pre-investing in upcoming or new projects. It has decreased the ambiguity in the sector and has made the processes more transparent.
5. According to RERA, a builder now has the right to approach the regulator in case there is an issue with the buyer.
Other benefits of RERA Act are as follows:
1. The revival of Residential Real-Estate: RERA Act supports the revival of residential real estate. With the Regulatory Authority actively functioning in the real estate sector, there is a significant increase in the confidence of homebuyers. With RERA bodies coming into effect, an elevated revival of residential real estate can be seen.
2. The increased flow of funds: RERA Act ensures the inflow of more funds for real estate projects. One of the major obstacles for real estate developers is getting funds upfront at the start of a project. RERA has been aided by financial reforms like the introduction of GST and FDI liberalization which has resulted in ease of doing business. Due to the transparency, thus incubated, RERA Act offers a greater institutionalized capital inflow, giving way for a smoother execution of realty projects.
3. Organized and transparent referral structure: This will result in organized real estate referrals as this act has deemed all forms of real estate referrals illegal. Developers are required to tie up with a referral platform that is RERA-compliant. Loyalie IT Solutions provides a RERA-compliant referral platform. This digital platform facilitates transparent tracking of referrals that will help your business to grow in a legal process.
Godrej Apartments in Noida, TATA Primanti Sec.72 Gurgaon, Experion Heartsong Apartments are some of the best real estate developers in India. These ready to move in apartments offer luxury housing services to their customers and follow all the rules and regulations of the RERA Act.
The RERA Act is aimed at bringing credibility to the currently messy and highly turbid real estate sector. For this purpose, the act elaborates several points, keeping in mind the rights of every stakeholder, including developers.
It has made buying and selling of a house easy and safe as there are reduced chances of fraud or cheating, since its inception. Therefore it will be wrong to say that this act only benefits the property buyers and not property sellers. Not only does this act helps the real estate developers, but it is also beneficial for the economic growth of the country.
So all the things mentioned above about the RERA Act allure one to buy apartments fearlessly. If you are looking for good options to buy a house then you must consider residential plots in Dwarka Expressway. There are plenty of options available to you. This area is one of the most renowned areas to live in Gurgaon and is in proximity to hospitals, schools, and the upcoming metro route. Public utility services like water supply, power lines, and sewage plans are already laid out and are under the process of completion. All these facilities tempt one to buy a property in Dwarka Expressway.
Therefore we can say that the RERA Act has changed various things in the real estate market and now no one can question the builder or developer’s integrity as RERA will provide the certificate only to the authentic builders.