What is RERA and its benefit of it to the real estate sector in India:
We all have heard terms like RERA-approved properties available and RERA registration ID, etc. But what exactly is it? We never heard of it before 2016 and why do the RERA-approved properties have a great consideration factor? Let’s find out all of it today.
The Indian real estate sector has undergone significant changes in the last decade, and one of the most significant changes has been the introduction of the Real Estate (Regulation and Development) Act, of 2016, commonly known as RERA. RERA is a game-changer in the Indian real estate sector and has brought in much-needed transparency and accountability. In this blog, we will discuss the key features of RERA, its benefits to the real estate sector in India, and the challenges faced during its implementation.
Background of RERA:
The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted by the Indian Parliament on March 25, 2016, to bring transparency, accountability, and regulation to the real estate sector in India. The act provides for the regulation and promotion of the real estate sector, the protection of the rights of consumers, and the establishment of a regulatory mechanism for resolving disputes. The act covers all aspects of the real estate sector, including the sale, purchase, and construction of residential and commercial properties.
Before the introduction of RERA, the real estate sector in India was largely unregulated and was plagued by several issues such as delays in the delivery of projects, lack of transparency, and exploitation of consumers by developers. The introduction of RERA aimed to address these issues by bringing in a set of rules and regulations for the sector and providing a mechanism for resolving disputes between consumers and developers.
RERA applies to all real estate projects, including ongoing and new projects, that involve the sale of land, buildings, or complexes for residential or commercial purposes. The act requires developers to register their projects with the RERA Authority and to comply with various provisions of the act, including the provision of timely and accurate information to consumers, the deposit of funds in an escrow account, and the timely delivery of projects.
Overall, the introduction of RERA has had a positive impact on the real estate sector in India, bringing in much-needed transparency and accountability, and providing a framework for the protection of the rights of consumers.
Key Features of RERA:
The key features of RERA are the following:
- Regulations and guidelines set by RERA to ensure transparency and accountability in the real estate sector. You can check RERA-approved properties for more security while buying a home or a property.
- Provisions for the protection of home buyers, including timely delivery of projects, protection of consumer rights, and resolution of disputes.
- Responsible for real estate developers and builders, including registering projects with RERA, publishing details of projects on the RERA website, and obtaining necessary approvals and licenses before starting construction.
Benefits of RERA to the Real Estate Sector in India:
The benefits of RERA to the real estate sector in India are numerous and include the following:
Increased transparency and accountability:
RERA requires developers to disclose information about their projects, such as details of the land and building, the construction timeline, and the payment schedule, to consumers. This has led to increased transparency and accountability in the sector and has helped to build trust between consumers and developers. For any RERA-approved properties, you can get every detail of the project going on and make your home-buying decision easy.
Improved delivery of projects:
RERA mandates that developers deliver projects within the specified timeframe, and provides for penalties in the event of delays. This has led to improved delivery of projects and has reduced the instances of delivery delays.
Protection of consumer rights:
RERA provides for the protection of the rights of consumers, including the right to receive timely and accurate information about the project, the right to receive compensation in the event of delays, and the right to seek redressal in case of disputes.
Streamlining of processes:
RERA requires developers to follow a set of standardized processes, such as registering projects, depositing funds in an escrow account, and providing timely information to consumers. This has led to a streamlining of processes in the sector and has reduced the instances of delays and disputes.
Boost the growth and development of the sector:
RERA has provided a boost to the growth and development of the real estate sector in India, by attracting investment and promoting transparency and accountability. The act has also provided a framework for the resolution of disputes, which has reduced the instances of delays and improved the efficiency of the sector.
Encourages innovation and entrepreneurship:
RERA encourages developers to innovate and invest in new technologies, and to bring in new business models that are aimed at providing better services to consumers. This has led to an increase in entrepreneurship in the sector and has contributed to its growth and development.
Steps to check any RERA-approved property details:
Thanks to the internet and the growing technology, now a common property buyer can check RERA details for any property he/she intends to buy by following these steps:
Visit the official RERA website:
The first step is to visit the official RERA website of the state where the property is located. On the website, one can find information about the RERA Authority, the rules and regulations, and the list of registered projects.
Search for the project:
Once you are on the RERA website, you can search for the project you are interested in by entering the name of the project, the developer, or the location of the property.
Check the registration status:
After you have found the project, you should check the registration status to ensure that the project is registered with RERA. This is important, as only registered projects are subject to the regulations and protections provided by RERA.
Review the project details:
Once you have confirmed the registration status of the project, you should review the project details, such as the construction timeline, payment schedule, and any other information that has been provided by the developer.
Check for any complaints or disputes:
You should also check for any complaints or disputes that have been filed against the project or the developer. This can be done by visiting the RERA Authority’s website or by contacting the Authority directly.
Take professional advice:
Before making a final decision, it is advisable to seek professional advice from a real estate agent, lawyer, or any other professional with expertise in RERA. This can help you to make an informed decision and avoid any potential issues in the future.
Challenges faced by the Implementation of RERA:
While RERA has brought many benefits to the real estate sector in India, there have been some challenges faced during its implementation. Some of the challenges include:
Resistance from developers and builders:
Some developers and builders have been resistant to the implementation of RERA, as it imposes more regulations and restrictions on their operations.
Lack of awareness among consumers:
There has been a lack of awareness among consumers about the provisions of RERA and their rights under the act. This has led to a lack of utilization of the provisions of RERA.
Inadequate infrastructure and manpower:
The implementation of RERA has been hindered by inadequate infrastructure and manpower in some states. There have been instances of delays in registering projects with RERA and resolving disputes due to a lack of resources.
The slow pace of resolution of disputes and complaints:
While RERA provides a mechanism for the resolution of disputes, the pace of resolution has been slow in some instances. This has led to frustration among consumers who are seeking a resolution to their complaints.
In conclusion, the Real Estate (Regulation and Development) Act, of 2016, has brought much-needed transparency and accountability to the real estate sector in India. The benefits of RERA to the real estate sector in India include increased consumer confidence, improved delivery of projects, streamlining of processes, and a boost to the growth and development of the sector. While there have been some challenges faced during its implementation, such as resistance from developers and builders, lack of awareness among consumers, and slow pace of dispute resolution, these can be addressed with the right approach and support. RERA has the potential to transform the real estate sector in India and make it a more organized and efficient sector. Bridl360 has always been promoting RERA as it focussed more on the buyer’s security on property buying and maintaining transparency.
Want to check our RERA-approved properties? Visit www.bridl360.com for more information.