Real Estate became an industry based on lopsided transactions and in favour of developers. But things are about to change with the introduction of RERA (Real Estate Regulation and Development Act) by the Government of India on May 1, 2017. It aims to create a more fair and equitable transaction between buyers and builders of real estate. It’s about to bring accountability and transparency in the entire real estate market.
Till date, there was no guarantee or warranty of any kind in the real estate sector. RERA ensures that if after the delivery of the project there is some sort of structural defect in the construction quality for up to 5 years after the delivery then one can complain about it to the builder and then he has to address the issue within 30 days itself.
RERA compliances to inform allottees about any minor addition or alteration in their bought structures. It also makes it inevitable to get a consent of 2/3rd allottees about any other addition or alteration. Builders cannot take decisions on their own accord and need to deliver what they actually promised.
It has also denied permission to launching or advertisement before registration with RERA. Builders need to share information about project plans, layouts, government approvals, land title status and sub-contractors. Strong financial and execution capability is required to launch a project and the development model or agreement may be given prominence. Builders need to provide a project completion time frame and no arbitrary cancellation of units by promoters is allowed.
RERA also asks for the formation of RWA within a specified time or 3 months after the majority of units have been sold.
The peerless aspect of RERA is that it provides a unified legal regime for making investments in real estate and also standardises the procedure of transactions.
Seems like RERA is about to end the woes of buyers.