Real Estate is one of those sectors that are unstructured in many ways. To bring some regulation to the same government has introduced Real Estate Regulatory Authority (RERA) Bill which is supposed to be in the favour of the buyers. These days very often we come across a familiar situation that the home buyers are not getting possession of the bought property on time after buying the home at a huge cost. Real Estate Regulatory Authority (RERA) Bill had acquired its shape back in 2013 itself, but has finally been brought into implementation in March.
How RERA is going to benefit the Buyers:
- Though it is approved centrally, but its implementation is made effective state wise. Every state would need to form a regulatory body to resolve any dispute arising between buyer and builder within 4 months of time.
- The builder/developer would need to keep 70% of the money taken from the buyer in a separate account to meet the construction requirements at first.
- RERA shall ensure the proper completeness of the project on time.
- Builders have been clearly indicated to define the carpet area including kitchen and washroom space, which was not the case earlier.
- The developer is now legally responsible for the restoration of the structural flaws up to five years, which earlier was up to 2 years only.
- These days the builder asks the buyer to pay for the super built-up area (as in the area which is beyond the walls of the said flat, and comes under courtyard stairs etc. But RERA makes it a mandate for the builders to charge only for the area which in built inside the walls of the flat.
- Under this scheme, builders will have to register their plans with the regulatory body. Also, they’ll have to get their projects (that include more than 8 apartments) registered with the regulatory body before the project even launch.
How RERA is going to benefit the Builders:
- The builders can anytime approach the regulatory body in case any kind of dispute arises amongst the two parties.
- Many times it happens with the builders that some party books a flat via giving some token amount but they never come back on time for making the rest of the payments. In that case too, the builder can seek help from the regulatory body to track the person and ask them to make the payments in full.
In many ways if we see, the policy formulated by RERA has been in benefits of both the parties but somehow the builders are taking it as the rules have been made very rude on their part. Since the RERA bill imposes the builder to make 10% of the total project cost or an imprisonment in case he fails to promise on to his commitments and hands over the project at a delay.
First the demonetization and now RERA, government could be in a drive of a noteworthy alliance effort in the Real Estate sector that would certainly result in evasion of unorganized players from the industry and only the trusted ones would stay with future catalogue.
