Buying residential property in India has experienced a significant change ever since the enforcement of the Real Estate (Regulation and Development) Act, also referred to as RERA. This Act was proposed in 2016 as one of the ways to tackle the issues of homebuyers and introduce more clarity to the real estate industry. In the past, the people had to deal with numerous problems including postponements in projects, absence of information, and conflicting ownership of property. RERA has minimized most of these issues and the purchase of a residential property has become a safer and stable, process.
Transparency in Information
Earlier, buyers did not have the chance to access all the information about a project and battery before RERA. Project plans, timelines and approvals were not always supposed to be shared by developers. Builders under RERA are required to enroll their projects with the authority, and supply all the necessary information. These are layout plans, approvals, completion timelines and financial statements. This data is rendered accessible to people on the official RERA site. Consequently, this has led to the buyers being able to make informed decisions whenever purchasing residential property.
Timely Completion of Projects
Delayed possession was one of the most prevalent issues of buyers. Most of the projects would always go far beyond the projected deadlines. RERA has transformed this by ensuring that developers are required to have specific timeline on how the project would be completed. In case they do not deliver within the right time, buyers have the right to compensation. This has made builders remain committed to their promises and has minimized the uncertainty among people who purchase residential property.
Financial Discipline for Developers
Another notable reform in RERA is the provision that the developer should deposit 70 percent of the amount received by the developers to another bank account. Such money can be spent on a particular project, based on which it was gathered. Previously the money used to be diverted to initiate or money the other project, thus creating delays and a strain on the budget. This rule results in improved financial discipline and the money of the purchasers of residential property is used in the right way.
Standardization of Practices
Standard practices have also been introduced in the real estate industry by RERA. An example is that the developers have to sell units according to the carpet area rather than super built-up area. This has caused clarity to pricing and fairness. Buyers have gained the knowledge of what they actually purchase in purchasing residential property resulting in a more confident relationship between builders and customers.
Dispute Resolution Mechanism
Previously, it used to take a long and complicating process to resolve the dispute between the buyers and the developers. This has been made easy by RERA which has established a special authority to address complaints in a faster manner. Customers can now go to the RERA authority to resolve any problem of false promises, delays or unfair charges. This has provided greater assurance to individuals in purchasing residential property by the fact that they are assured that they have a stable redressal mechanism.
Restoring Buyer Confidence
All in all, RERA has introduced the real estate scene to become buyer-friendly. It has provided a platform where developers have become responsible and buyers are more safeguarded. Another aspect that has been promoted by the Act is professionalism in the industry and the developers are concerned about quality and meeting of deadlines. This has gone far in regaining the trust of people in the purchase of residential property.
Conclusion
RERA has changed the nature of the purchase and sale of Buying Residential Property in India. It has enhanced the process by inviting transparency, delivery on time, instilling financial discipline and giving the dispute resolution system a clear and smooth resolution system. Customers now have a greater degree of confidence in going ahead to purchase because they know that their interests are secured by the law. As any prospective purchaser of residential property, it is possible to navigate the process without difficulties and with more confidence when having knowledge of the advantages of RERA.
