RERA which goes effective today is expected to change how the Real Estate Industry in India will operate. Here’s a quick look at how it impacts the buyers
- With heavy penalties on project delays home buyers can start expecting a timely completed handover.
- Disclosures like approvals received, layout plans etc become mandatory under the new act ensuring a more transparent operations
- The Act will help buyers to get well-defined product typology and interior specifications. Therefore, buyers will be able to make informed decision on a well laid-down & accurate information
- RERA mandates that 70% of the money received from buyers be deposited in an escrow account and used only for the purpose of the development of a project, there by regulating the cash flow movements that builders were doing and over leveraging of the same was leading to project delays.
- Mostly the homes are being sold based on built-up and super built-up areas, and not carpet area which is what the buyers actually get. The act will ensure all marketing collaterals and documents carry “carpet area” and nothing else.
- Developers will have to compulsorily register themselves as well as their projects with the authority built at the state level. Unless they do so, they won’t be able to either advertise or sell their project. This will ensure better governance of the sector and also help buyers.
- Homebuyers who use the services of realty agents and agencies will now be protected as the Act renders brokers and agents punishable if they do not abide with the regulator’s strictures ruling.
- In case of any dispute and non-delivery, RERA entails a clear process of redressal, thus ensuring buyer’s interest and money is well-safeguarded.
RERA has finally come into force. Manisha Natarajan gets a check-list for the homebuyers!
#RERA has finally come into force. Manisha Natarajan gets a check-list for the homebuyers!
Posted by CNBC-TV18 on Monday, 1 May 2017