What is the RERA Act? Impact of RERA on Indian real estate

The history of real estate has been corrupted by fraudulent transactions which rested heavily in favour of the developers! The Real Estate Regulation (and Development) Act, 2016 (RERA) was enforced on May 1, 2017 to combat this scenario. The main purpose is to boost investments and create a more transparent environment for real estate transactions. 

Asset Homes, eminent builders of flats in Kochi & flats in Trivandrum brings you an overview of what is RERA and its impact on Indian real estate.

RERA has transformed the real estate industry and made real estate deals more accountable and transparent. RERA aims for a more equitable and fair transaction between the sellers and the buyers. It has brought in a structured outlook to the real estate sector which has been weighed down by the intricacies of red tape. The stand of many of the Indian real estate companies who have risen to the challenge & the work put in by the regulators who have meticulously ensured the implementation of RERA should also be appreciated.

 

How will RERA impact the Indian real estate?

Indian real estate industry has its first regulator in RERA. The Real Estate Act makes it mandatory for each state and union territory, to form its own regulator and frame the rules that will govern the functioning of the regulator.

RERA stipulates that: 

• If a builder delays completing a project, the customer should be compensated. A fine of up to 10% can be imposed on the builders for a major delay. But the pandemic has changed this situation and more time has been allotted to builders for completing the project.
• Abandoning projects mid-way is a punishable offence and the absconding builders can get upto 3 years of imprisonment.
• Breach of sale agreement between buyers and builders is to be dealt with strictly.
• Any real estate project with a total developed area exceeding 500 sq. mtrs. or more than 8 apartments proposed, must be registered. 
• Even the existing projects without the completion certificate (CC) or occupancy certificate (OC) need to comply with the RERA Act. 
• Deviations from the initial plan at the time of construction of the housing project will not be tolerated. 
• There cannot be pre-launches of villas or flats without requisite approvals from the local municipal or development authority. 
• Provision of additional protection to consumers, protecting their interests and ensuring that the delivery of the ongoing projects has become smooth.
• The consumers can now settle out their disputes and differences with the developers within the stipulated time of 60 to 90 days.
• The end-consumer to see all updates on the property in one platform. 

RERA has played a key role in shaping the realty segment in India and has been successful in building a strong trust between the developers and buyers. Thanks to the RERA cover on projects, the Indian real estate is no longer considered a risky proposition.

To buy flats in Kochi and flats in Trivandrum, contact us at Asset Homes, the best builder in Kerala.