India has emerged as one of the few world economies with a healthy economic perspective and sequential growth in a global platform.
The real estate sector, one of the major contributors to inclusive growth, is also clasping a share of its governing attention. To ensure sustainable growth and the welfare of the entire populace, the Government has directed a sharp focus on regulations for every driver contributing to the growth of the Indian economy. Policymakers have put this perspective on legal grounds. It is called the Real Estate (Regulation and Development) Act 2016 (RERA). These RERA guidelines work towards the betterment of consumers and builders.
Mayank Agarwal, Founder and CEO of India's first online real estate edtech platform ‘Edstate’; provides an insight into the Real Estate (Regulation and Development) Act 2016 (RERA) and highlights how the act has promoted fair and transparent transactions and has brought significant answerability in the real estate market.
One of the important guidelines mentioned by the RERA act is to upload all the approvals and paperwork of any project on the RERA website online. This is important and mandatory when maintaining duties as a builder or promoter. Many real estate professionals understand the importance of maintaining the decorum of the system, which infuses transparency.
Every quarter, builders must update the number of apartments and garages sold. When builders update their inventory, it appears to establish information symmetry between the promoter and allottee. Additionally, updating the project's construction status every quarter helps keep track of the project's timeline.
And lastly, updating the list of approvals taken and pending every quarter. These regulations will provide smooth functioning of the projects and reduce delays. The builders must deliver what they promise, especially in the real estate business. Do not do any false advertising. For example, if the project mentions a swimming pool on the podium of the building in the brochures, then the final product must have a swimming pool on the podium. Disobeying this regulation will only invite legal action against any builder. Additionally, a builder cannot market or sell his real estate project before procuring the RERA registration number for the respective project. As a customer, ensure the builders deliver whatever they show in brochures.
As per the RERA guidelines, it is imperative to have the real estate project's RERA registration number printed on the advertising brochure. Along with it, the builders must also provide the State's RERA website link. It will only promote good governance in the sector, which in turn would create investor confidence. Builders must deliver timely possession of the under-construction apartments, as per the RERA possession timelines. The possession must be handed over to the allottees only after the occupancy certificate has been issued for the particular building. Failure to do so can attract a heavy penalty for the developer by RERA. Every builder must form a society or association of allottees and transfer the apartment to the buyer and the common areas to the society after possession via a registered conveyance deed.
Even after various regulations, it is unfortunate to see projects at a standstill while the clearance takes a lot of time by concerned authorities, leading to delays in the project. For this reason, emphasis should be more on identifying the root cause for the delay of the projects and taking necessary precautions. Some basics that can minimise drastic effects include initial proper and sound project planning. Another way can be introducing single window clearance that can fasten approval mechanisms from the government authorities. Involving an industry expert as the specific expertise will always go right.
RERA has injected a lot of relief into homebuyers by protecting buyers' interests. Also, the builders are now more accountable for the timely delivery of projects. It has eliminated unscrupulous builders and has protected buyers from fraudulent sellers. Many content creators are trying to educate the masses with basic information to help them make sane decisions. Mayank Agarwal, for example, shares valuable information in easy language through his Instagram handle @realestatewithmayank. Ultimately, this has put more responsibility on the builders to ensure high-quality service and performance.
