Find out how the Real Estate (Regulation and Development) Act, of 2016 has changed the real estate scenario for a home buyer.
Some Issues with Indian Realty Pre-RERA
There were many issues in the Indian realty sector before the RERA Act was passed. Project completions would be delayed, transactions would be opaque, and homebuyers would have to live with uncertainty over the title of a property. The balance of power heavily lay in favor of builders and developers, and the buyers were quite helplessly the sufferers. It would take years for the redressal of the grievances to be set in, as there was no sort of regulatory framework, ending up falling on deaf ears, a matter of frustration and financial strain for the buyers. This added further layers of chaos through the lack of contract standardization and opaqueness in the process, making property investment a daunting task.
Personal Stories of Frustration and Confusion: The Buyer’s Perspective
Consider this: you have been saving for years to buy your dream home, only to find that the dream comes with indefinite delays and spiraling prices. This has been the cruel twist for a large section of Indian homebuyers. Every day, there were countless stories of people losing their hard-earned money to rogue developers. The emotional and financial toll was immense and caused widespread distress among buyers.
For example, a middle-class professional, Ramesh, had invested in a housing project in Mumbai. The project was supposed to have been completed in three years, but five years down the line, there was no sign of possession. This is just one among thousands that shows there is a crying need for a strong regulatory mechanism.
Origin of RERA: A Game-Changer for Real Estate Regulation
The Real Estate (Regulation and Development) Act, of 2016, was by all means a game-changer for the Indian real estate scenario. This kind of intervention, through RERA, was long due to bring transparency, accountability, and efficiency into the sector. Acknowledging the misery of homebuyers, the government felt the requirement of a structured regulatory mechanism. The RERA Act has come to protect and promote the interests of homebuyers besides helping to establish fairness in practice. Its very inception had been a game-changer—ushering in transparency and reliability into real estate markets.
Unraveling the RERA Act: Key Facets and How They Help Solve Problems
The important features of RERA that are specifically targeted at solving the existing problems within the real estate sector are numerous. This made it compulsory for developers to first register their projects with the respective State RERA Authorities before advertising or selling them. In other words, this ensures that only those projects which have clear titles and necessary approvals are marketed.
The Act also determined that 70% of the money collected should be kept in an escrow account for that particular project. This was to ensure that money collected is plowed back into the project. Apart from this, stringent penalties on delays and a fast-track dispute resolution mechanism have equipped homebuyers with confidence in their investments
Take Action: How to Leverage RERA for Better Property Investments
Because of RERA, property investment is certainly secure and transparent. One of the first things a prospective investor ought to do is verify whether a new project or the developer is currently registered with RERA. This can be easily verified on the state RERA website, which provides all details required to take a call. And more likely than not, knowing how RERA can help make your buying that much better is likely to make a huge difference. In case you face any problems, the RERA authorities are for your rescue. Use the rules to your advantage so that your property investment is safe, transparent, and legal.
Expert advice: Log on to propertsuggestions.com to help you find your way around the RERA and how to get more out of your money while investing in properties.