What is RERA and how has it impacted the real estate market
The past decade has witnessed growth at breakneck speed in India’s real estate industry. However, lack of transparency and too much of shady deals and consumer short-changing was beginning to turn customers away. In response, the parliament installed the Real Estate (Regulation and Development) Act, 2016 which established the Real Estate Regulatory Authority (RERA).
The introduction of RERA gave power to the purchaser. This is to say that buyers have adequate protection against unscrupulous developers who were unorganized and therefore unable to deliver projects. As such, it is clear that the major objective of RERA was to empower consumers and to boost investor sentiment in the real estate sector.
How does RERA protect consumers?
Before RERA, consumers had only one channel, the courts, to seek redressal in the event of shortchanging by the developers. Given the slow pace of the court system, many people would miss the opportunity for adequate compensation or access to their purchased homes. Today, RERA has taken up the vital role of delivering quick verdicts for grievances by home buyers.
Some of the features of RERA that ensure sanity in the Indian real estate sector include issuing of registration to real estate projects that adhere to laid down rules. Further, the entity has mandate to punish errant developers.
No more delaying of projects Under the statute establishing RERA, developers will now have to sign written affidavits as a show of promise to deliver projects in agreed time. Also, the agreement of sale between the developer and the buyer carries the date of possession. This is to say that once the developer extends the project past the date, the buyer is legally allowed to demand a refund plus interest.
As a result, there is increased trust in the market and more buyers are coming out to snap up projects in various parts of India.
