The Real Estate Market in India has seen a stable rise over the years. However, instances of project delays and rising overhead costs have called for stern measures to ensure that a governing mechanism is established to avoid loopholes in the industry.
In a bid to boost investments in the real estate sector and protect home buyers, the much-awaited Real estate Regulation and Development Act (RERA), came into ‘full force’ on 1st May 2017. There were many talks about RERA that it will bring a paradigm shift in the way the real estate industry works, and that it is all set to make brokers answerable towards home buyers. Under RERA, all real estate projects in each state and union territory will be monitored by the respective governing authorities.
RERA In A Nutshell
According to RERA, it is mandatory for every property in Maharashtra, which exceeds 500 square meters or eight units, to be registered under Maha RERA. A ninety-day window will permit real estate companies in Pune and other cities to register their ongoing projects. It is also obligatory for real estate companies to update information pertaining to various projects on the Maha RERA website frequently, in order to give home buyers a chance to monitor the progress and ensure transparency. Maha RERA not only allows registration of real estate companies but also of agents for a term up to five years.
Why It Is Important?
A regulation like RERA was needed in order to revive confidence in our country’s real estate sector. It is one of the leading revenue generators in our country and it is needed some transparent government authority to keep a check on developers. RERA will provide a common ground for both buyers and developers and will reduce the risks which were faced by the people before. RERA is of extreme significance as it will be applicable to more than 76,000 companies across the country. This act mandates a number of things like registration of projects and real estate agents which have become mandatory now. A buyer will have all the rights to know every detail about a real estate project and will also have the right to get all the documents related to the project. RERA establishes a state authority which will govern both residential and commercial real estate transactions. RERA will ensure timely delivery of the project which is a big sigh of relief to home buyers. RERA will guarantee more precision between the developers and buyers thereby ensuring transparency.
RERA’s Impact On The Real Estate
RERA will also affect the organized real estate sector, for example, a retail investor who invests in an under construction project for assured return will now have the detailed information about the financial strength of the developer offering the assured return. This Act empowers the regulators to fine and detain the defaulters and the detainment can go upto a period of three years.
Benefits That RERA will have on Investments in Real Estate:
A healthy policy change is a big boost for a growing economy. And with RERA all set to transform the realty sector, it can be said that consumers will benefit by investing in a rich market like India, especially in Pune, which is a growing market for maximizing returns.