The much-awaited RERA was required for reviving confidence in India’s real estate sector. This is one of the prime revenue creators in India and it required some transparent government authority and regulatory authority for observing the builders. RERA offers a common ground for both builders and buyers and mitigates the risks which people used to encounter before.
Yes, RERA has definitely become a principal aspect of real estate decision making. It is of high importance because it is applicable to numerous organisations across the nation. The act instructs many things like project registrations and real estate agents. 70% of the finances gathered from purchases should be deposited in an individual bank account if it’s a new project and in the case of an existing project, 70% of the unused amount should be deposited in an individual bank account. The buyer has every right to know all details regarding a real estate project and should get all the documents associated with the project.
RERA establishes the state authority that governs both commercial and residential transactions. This act makes sure on-time project delivery and gives a huge relief to homebuyers. It makes sure more clarity between buyers and builders hence making sure transparency.
How RERA Impacts the Real Estate Decision Making
RERA impacts the real estate industry or real estate agents in different ways:
- Real estate agents should be registered with state-level RERA.
- Brokers in an unorganised sector should receive a license else they will be out of the market.
- Making a code of conduct is compulsory for the agents and they should make all transactions official to restrict unfair business practices.
- Builders’ prices will increase after the registration.
RERA also impacts the organised real estate sector, for instance, a retail investor who spends expense on an under-construction project for guaranteed return will have all details regarding the financial strength of the builder providing the guaranteed return. As an outcome, it puts pressure on grade B builders and they should be highly cautious prior to introducing any project with a guaranteed return. RERA act enables the regulators for fining and imprisoning the defaulters and this imprisonment can go up to the tenure of 3 years.
It’s never late to start something for good. Albeit RERA act took a few years for coming into full force, one thing is certain that this act has brought new home for individuals impacted by the immoral practices of the developers. This is the responsibility of the regulatory authority for making RERA act work for the betterment of both builders and homebuyers.