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11 May, 2018
The inception of RERA in the Indian real estate industry was a landmark event in 2017. Although the homeowners were anxious about the outcome of the act, it has eventually turned out to be beneficial to them. The aim of RERA was to increase the transparency in the industry and save the interest of both the home buyers and the real estate developers. After the introduction of RERA, corruption in the real estate industry has significantly reduced. At the same time, it has created a favourable environment for business in the real estate sector. Here are four ways RERA has benefitted the homebuyers.
Choosing the right developer
Homeowners willing to invest in real estate India often find it challenging to choose the right developer. The buyers had to trust on the advertising programs in real estate in the past. This often resulted in misinterpretation and inadequate communication, which affected the homeowners. However, RERA has done away with this ambiguity. The developers cannot lure homeowners with lucrative images of homes, that are far from reality. They need to showcase the actual photos of the proposed plans to the buyers. This strategy will eliminate the corrupt developers from the market, enabling the homebuyers to choose the right developer.
Separate escrow accounts
According to the new guidelines established by RERA, the developers need to maintain separate escrow accounts for each of the projects they develop. This ensures that the funds that the investors invest on a particular project cannot be diverted to others. The property rates in India have also been scrutinized by the authorities. Often, the shortage of funds on the end of the developer leads to delays in completion of the projects. As a result, the homeowners suffer most of the times. With the new regulations coming into play, the homeowners have benefitted from timely delivery of the apartments.
Compliance is a necessity and not a choice
It is necessary for the builders to comply with the guidelines. It is not a choice, and they need to adhere to the rules. Failure to comply with the established norms can lead to penalties and imprisonment. This has increased the sale of property in India, as investors and homeowners now have more confidence on the authorities. The regulations in the real estate sector need to be strictly adhered to by the developers.
Soft-launch and pre-launch have been eliminated
Previously, developers used to promote their projects even before they were materialized. As a result, the homeowners were confused with misleading advertisements and false commitments. According to the new guidelines set by RERA, pre-launch and soft launch of projects are no longer valid. Therefore, the homeowners are protected from misleading information on the projects. The developers can no longer finance the projects by advertising them to prospective homebuyers. This has enhanced the business ambience to a great extent in the industry.
Investors and homeowners willing to buy Indian real estate property can choose from a number of options. Have a look at the upcoming projects in the big cities and get your dream home.