Although RERA was introduced in Maharashtra in March 2017, there is still some confusion as to what exactly its provisions are, and if it will benefit the home buyers or the real estate developers. To put it succinctly, The Real Estate (Regulation and Development) Act, 2016 (RERA) is an Act passed by the Indian Parliament. The RERA seeks to protect the interests of home buyers and also boost investments in the real estate sector. It is the only regulatory body that oversees and standardises the practices of the real estate sector. The act tries to keep the interests of the homebuyers at the forefront.
Here the 5 ways in RERA lays down some rules that benefit the homebuyers in the long run:
- A reliable future in reliable hands:
First and the foremost, RERA establishes the state authority and vests authority on the Real estate regulator to govern both residential and commercial real estate transactions. This is slated to drastically improve the governance hold on the real estate sector reducing disputes to a great extent. The state Real estate regulatory authority shall become the government body to which any grievances, problems, issues can be addressed to for solutions.
- A time-bound promise: One of the diktats of RERA states that the developers have to deposit around 70% of the total funds in a dedicated account. This, in turn, ensures that the projects have sufficient funds to speed up which in turn leads to them getting completed on time. This timely delivery of the project is the biggest factor or cause of concern for the homebuyers and by taking this step RERA has effectively stepped in to dispel the same.
- Transparent Deals, Honest Agreements: RERA brings in more clarity in the deals between the developers and the homebuyers leaving out ambiguities. Now the deals and transactions shall be more specific so as the homebuyers do not suffer unnecessarily later on for the lack of clarity.
- Well-Defined Spaces: As per the rules of RERA, Real Estate Developers are now required to state the carpet area of the available built-up space. The carpet area is defined as ‘the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment’.
- Clarity leading to better quality: Last but not the least, as RERA is likely to bring in more transparency in the Real estate sector, it shall lead the sector to be able to attract more FDIs. This is set to improve the feasibility of financing options availability.