Skip to main content

Why RERA?!!


WHY RERA?!

India has a vast population with needs regarding food, house and jobs on an ever-increase mode. The housing among these fields is one of the major ones. Thousands of people have grown to be rich and as many of them have made loss in real estate business. It is the one of the leading revenue generators for the government. Even though it has such strong presence in the country, it never had a regulating body. Due to the failure of the government to observe this, many people have become the victims of some scheming people doing the real estate business. We are not saying that every real estate project chooses unethical manner to sell their units, but lately, and lately here should be seen as a few years, this has increased manifold with the economy growth of India. The buyers who come from a middle-class background have time and again fallen prey to such petty real estate developers. There was a growing need to bring a transparent government body which can check the developers.
Finally, the government delivered by making an authority known as RERA which stands for Real Estate Regulatory Authority. It was passed in March 2016 by the parliament. This promises to bring a justice to the buyer through making strict policies that have to be fulfilled by the developers to sell their projects. The major problem that real estate in India is facing is that of the delayed possession given to the home seeker by the rich and the cunning builders. Thus, RERA will help people by bringing in a high level of transparency and discipline that these builders must have to follow. Specifically, RERA will check all the under-construction projects as maximum swindling is done in this phase.
Following are some of the risks that people face through developers:
  • Selling of flats multiple times to different parties.
  • Delay in giving possession to the buyer which happens due to various reasons and malpractices such as funding crisis, demanding additional charges in the name of facilities, reducing carpet area, changing the plans of the societies etc.
  • The contracts made are one-sided in the favour of the developer, for example, a penalty of a massive 21% if one delay’s the payment even by a day.
Apart from these risks, the buyer has to unwillingly become a part of a major tussle between the developers and the government relating to the approval of the projects. Many a time, the builder takes the money from a buyer and then his project ceases at half completion due to not completing some paperwork or not getting prior approvals with the government. Thus, in some way or the other, the government also becomes a part of this deceiving process as they start the approval process after the builder markets his project leading to many problems.
The laws under RERA are still in the early days of development but one thing is for sure that there will be a huge relief for the buyers regarding developer-specific risk. The mechanism of RERA will be made such that it provides a common ground for both the buyers as well as the developers. Transparency is the key point regarding the rules under RERA as the government wants that every aspect of information that the general public should know should be made available on an informational portal. The regulatory risk will also be laid upon the developer as he will have to pay compensation if any mishaps happen while giving the possession of a unit. All the builders will have to register themselves under RERA which will see a low risk in the property business.
However, even though RERA will bring a new light for the people affected due to the immoral practices of builders, it is still not certain whether the price will go up in the coming year since as per sources, full implementation of RERA all over India will be completed till May 2017.

Comments

Post a Comment

Popular posts from this blog

It is easier to buy a House or Commercial property even During Covid 19 ???

Corona virus changed the way we live. We struggle to get back to the situation how it was before and on the other hand some might change ever. Corona Virus affected the lives in many ways and adjusting to the current situation is must and we should learn to live with it. When there is lockdown and restrictions to go out, your plan to buy a property would be paused. You might be in dilemma in making decision of investing in immovable properties.  Lockdown might be delayed your plan of buying “A Dream Home”. House or Commercial properties are still for sale, and even when lockdown restrictions online tools made it easier to make a right choice. In the Current situation you might not be able to go to the sight with your agent. Going to the location and selecting home in person might not be possible. But agents even have creative online tools and adopting technology that interested buyers can buy their choice of home without any delay. Currently people are conti...
Post a Comment
Read more

Which is a Better Investment: Real Estate Or Stocks?

Which is a Better Investment: Real Estate Or Stocks? Work and save aggressively, knowing that a life without the worries of money is a good life! There’s always a long standing debate among investors on whether property makes a better investment proposition to shares. There’s no denying that the stock market historically outperforms other types of investments. And if you have to choose between investing in real estate and stocks, it might seem like a no brainier. Some people think the stock market is the better alternative because the real estate market is unstable at its best. There’s no guarantee that property values will appreciate from year to year and when home price gains slow or decline, investors take a serious hit. The stock market isn’t much better, it’s known for its volatility and there are unpredictable ups and downs. Without doubt, stock market investing offers an unparalleled ease. You can invest in stocks with as less as Rs 500. It can be done i...
Post a Comment
Read more

What is RERA? What are it's salient features? How does it protect the buyers and what is the difference in scenario before and after it?

What is RERA? What are it's salient features? How does it protect the buyers and what is the difference in scenario before and after it? This bill was passed by the Parliament on March 15, 2016, and the Act came into force on May 1, 2016. From a common man perspective, it was meant to address some of the pain points of a typical property buyer: What is the recourse when a project hand-over is delayed by the builder/ pro-motor? How does one verify that a specific property meets the statutory norms as set by the local civic bodies? Hence the Real Estate Regulation and Development Act was introduced to help the common man. Its primary goal is to bring tighter regulations into the system, thereby bring transparency and accountability to the whole home-ownership experience. The Act applies to both residential and commercial real estate projects. The basic principles and vision for this Act were drafted by the Center, and then for each of the states to individually set...
Post a Comment
Read more