How the real estate market is being changed by RERA

RERA stands for the Real Estate (Regulation and Development) Act which was passed in 2016 by the Government of India as a means to regulate the real estate industry, safeguard the interest of buyers, and encourage developers towards more professional and timely services. This has had a positive impact on India’s real estate industry with both buyers and builders benefiting from it.

Benefits of RERA for homebuyers

As a homebuyer, you get to have a list of benefits from RERA, some of which are given below:

1. You get a standardised and model sales agreement from all builders registered under RERA
2. If a builder is not registered under RERA, they will not be allowed to advertise their projects
3. Grievances, if any, are resolved quickly under RERA’s guidance
4. Builders can carry out modifications to projects only if they have the permission of at least two-thirds of the existing allottees
5. Buyers can hold developers accountable throughout the process of building and promotions
6. If there is any delay in projects beyond the timeframe promised by the builder, you will be compensated for it

Knowing that all builders have to now register under RERA, that they will be held accountable for their actions and any delays, and that any grievances can be settled quickly and efficiently, gives homebuyers even more confidence to invest in a property that is promoted by a RERA-registered developer. They can also be assured that they will receive the property for possession within the time frame given to them. This means that they do not waste any money staying in a rented place beyond the timeframe planned by them just because the property is not ready as promised to move into.

RERA Regulations for the Real Estate Industry

Some of the regulations that developers have to abide by under RERA are as given below:

• Projects that exceed 500 square meters or that have more than eight apartments have to be registered under RERA
• Builders must deposit up to 70% of the money collected from homebuyers in banks through cheques
• Every stage of the project’s development has to be updated on the RERA website
• One model sale agreement is applicable for all builders under RERA

By streamlining rules for builders and developers, RERA has revolutionised the real estate industry. By holding builders accountable, it has actually made real estate projects more attractive to customers, thus increasing sales of projects for the real estate industry. With homeowners no longer being hesitant to buy homes due to the fear of delays or fraud, RERA has helped to increase sales for builders as well while also ensuring that the interests of buyers are safe-guarded at all times.