The real estate industry has always been shrouded in controversies considering many factors including bad loans, stay on construction, illegal constructions and grief for home buyer due to late payment. The Real Estate Regulatory Act was introduced in the hope of putting an end to a number of stagnant processes as well as to streamline the real estate sector holistically. In an effort to enhance transparency and protect the interest of home buyers, the Act brought with amendments and changes. If you are part of the real estate industry or intend to join it, it’s imperative to understand RERA and its many implications through a professional RERA consultant or an expert. How will it help Home Buyers? Home buyers have consistently claimed that the real estate sector was heavily on the side of builders and lacked representation for home buyers. In light of numerous complaints, the government introduced the Act. Under the Act, the following changes have been made 1. Allottees will now be informed if there is an addition or change to the original plan 2. No launch or advertisement or promotion can be made unless the property is listed with RERA 3. Consent of 2/3rd allottees should there be any addition or change 4. Information needs to be shared on project plans, layout, government approvals and land tittle status 5. Increased focus on timely completion of projects as well as delivery to customers 6. Improvement in the quality of construction due to a defect liability period of 5 years 7. Formation of RWA within specified time or 3 months after majority of units have been sold. Earlier the absence of a monitoring authority created mismanaged and mistrust for everyone in the real estate sector. The Act mandates the establishment of a Real Estate Regulatory Authority in each state as well as union territory. From the protection of interests of all stakeholders as well as collating data at a designed repository and creating a comprehensive and responsive grievance redressal system comes under the portfolio of RERA. The authority also ensures that all applications are disposed within a maximum period of 60 days with the permission to extend if the reason is properly recorded. If your business is connected to the real estate sector, it is important to understand and follow all rules under the Act in order to avoid penalty from the any authority. To learn more about RERA, you can write to us at firstname.lastname@example.org.
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