Real Estate Regulation Act or RERA was a bill passed by the central Government on May 01, 2017, which comes as a relief to most home buyers. According to real estate analysts, RERA is advantageous for both the developers and buyers. Developers will gain the confidence and trust of the consumers and buyers will get a transparent and on time delivery of the projects with the new law in place. However there are certain things that both the buyers and developers need to know:
RERA – A relief for Developers and Buyers
* The RERA act will initiate the process of formulating the right rules in the field of real estate. The main objective of the bill is to protect the interests of consumers and also to promote the growth of real estate sector which in the process builds an environment of trust, confidence and credibility among the consumers.
* Under the new RERA Act, only 10% of the total cost of the property can be attained from the buyer and the developers should guarantee for the structural stability of the buildings.
* RERA will be implemented by The Ministry of Housing and Urban Poverty Alleviation, for which Central and State Governments would formulate rules and enact it from the month of May. A proper authoriy- Real Estate Regulatory Authority would be established and they would be responsible to sort out the complaints from the buyers and developers in not more than 60 days. Also the Government can designate a separate person in-charge to finalize solutions for the problems.
* Any project has to be registered under the RERA act and the customers are supposed to verify if the project is registered or not. The pricing will be impacted as both GST and RERA falling into place
and taking effect. According to a report from Money Control, around 70% of the amount has to be transferred to an escrow account by the developers and this cannot be used for any other projects by the builders.
On the whole, the RERA acts as a good protection from the consumer point of view and enables the builders to provide the best ensuring that they keep up with the promise and also gaining the trust from the consumers.