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20 January, 2018
The real estate industry in India has received a boost in the last few years, thanks to the regulatory policies being incorporated by the Government. With the inception of RERA, the transparency in the real estate industry has increased. These days investment in property is more of a necessity than a luxury. The investors and homeowners are proactive in their approach. The demand for quality homes in the area has increased in recent times. Well, with a large number of real estate developers coming up with sophisticated apartments, the number of choices for the homeowners are many. Besides, the homeowners are concerned about the credibility of the sellers. However, the regulatory policies are coming into force creating a better business environment for the homeowners.
Most of the homeowners wonder if RERA can actually be beneficial to them while making the purchase. Well, the Real Estate Regulatory Authority has taken up an important role in ensuring transparent transactions in the real estate business. It is important for homeowners to check out the legal aspects of the projects. One would like to remain free from the legal hassles that come up the way. The legal aspects involve approvals, litigations, timely delivery of the projects, and so on. RERA has set up certain rules that are to be followed by the developers. Besides, they also need to furnish certain details to the customers. They face penalties in case they fail to produce these documents. RERA has also come up with a code of conduct for the stakeholders. These mechanisms will bring about transparency in the process of buying homes.
Homeowners faced a challenge in choosing the right developers, prior to RERA. People used to browse through websites and get recommendations from peer groups and other people. These were often misleading and the homebuyers ended up investing in the wrong properties. According to the rules set up by RERA, the developers need to register the project with the regulatory authority before selling the units. Besides, false advertisements and incorrect declarations will also remain under tight scrutiny and the developers will be penalized in case they do not comply with the rules. The process of choosing a developer has become simplified and the new rules have made the developers more accountable and committed.
RERA has taken adequate measures to prevent delays in delivering the projects. It intervenes in the deal at the right time, ensuring that the customers get the compensation if the delivery process undergoes delay. Delays in delivering the projects result in financial losses of the home buyers. RERA has devised a number of structural connections that eliminates delays in delivery.
All these measures taken by the regulatory authority have leveraged the real estate business in India.