What is RERA and how will it benefit home buyers?
Real Estate Regulatory Authority (RERA), stands for transparency in the real estate industry. It was brought to action to eradicate the existing discrepancies and problems within the sector.
The Indian Government passed the RERA Act in May 2016. RERA was brought into action to address concerns of homebuyers, builders, brokers, and other stakeholders of the real estate industry. RERA has implemented many reforms and more are on the anvil. It is important to consult builders, agents and others aware about RERA and the changes that have been made before finalizing a property deal.
RERA Act has brought positive changes for the buyers and here is how:
Regulatory Authority
The absence of a proper regulator in the real estate sector was long felt. The Act establishes the Real Estate Regulatory Authority in each state and union territory. Its functions include protection of the interests of the stakeholders, accumulating data at a designated repository and creating a robust grievance redressal system. To prevent time lags, the authority has been mandated to dispose applications within a maximum period of 60 days; and the same may be extended only if a reason is recorded for the delay.
Consistent Updates
The RERA Act requires builders or promoters to keep the homebuyers consistently updated. This is to Homebuyers will be able to monitor the progress of the project on the RERA website as promoters will be required to make periodic submissions to the regulator regarding the progress of the project.
Standard Sale Agreement
The Act prescribes a standard model sale agreement to be entered into between promoters and homebuyers. This makes a huge difference for the homebuyers as they can look forward to more balanced agreements in the future.
Timely Completion
As per the RERA Act, builders are to give the exact delivery date of the handover of the apartments. And, if the project isn’t complete by the then, they’ll face penalties. To ensure that violation of the Act is not taken lightly, stiff monetary penalty (up to 10% of the project cost) and imprisonment has been prescribed against violators.
RERA Agent Registration process made easy by vakilsearch. Every real estate agent is directed to make an application for registration to the state Real Estate Regulatory Authority.RERA Agent Registration can be obtained by those involved in the buying and selling of properties in the real estate industry.
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