The coming of RERA (Real Estate Regulation and Development Act) in the year 2017 had caused a major stir in the real estate market. Some call it a boon for the real estate industry others claim that it’s entirely buyer oriented, which would make it strictly one-sided. Delayed and defaulted projects are considered the biggest concerns in the holistic development of the real estate sector. Due to no regulatory authority present earlier on and no rules to enforce the builder-buyer clash primarily appeared one-sided.
Real Estate experience holders and experts such as Mr Pankaj Bajaj Eldeco and President of CREDAI-NCR claim that RERA is a step towards overall redemption of the real estate market. He believes that the RERA bill will be very proficient in abstracting the authentic players from the defaulters. It’s also quite apparent that RERA does have some teething issues which are addressed by Eldeco MD Pankaj Bajaj as well, particularly in case of already launched projects and they need to be solved before its further implementation but it’s in motion now and over a period of time things would settle down for the benefit of the entire sector, both buyers and builders.
With RERA making possession date a sacrosanct, builder would not be able to play with home buyers dreams and aspirations. The sale agreement would specifically have to carry the date of possession and the rate of interest in case of any default. The construction land needs to be dispute free in writing before the beginning of construction so that no delay is caused at the time of delivery because of that reason. Projects need to be free from encumbrances. Also, RERA enforces that the builders cannot use the buyer’s money to start their new projects before delivery. The funds from each project need to be kept in a separate escrow account.
Hence, it’s paramount that the act does not get diluted by the states so that the homebuyers are not left at the mercy of the builders.