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Real estate regulatory act

Changes a Home buyer will see post RERA

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The much in trend topic of discussion these days is RERA. RERA is bringing about a paradigm shift in the real estate sector which will make buying/selling of property systematic and methodical. Homebuyers can now thank the government for saving them from fraud contracts, late possession, uninformed changes and much more.

Brokers have never been under any regulatory authority. However RERA will bring some professionalism in the sector. RERA can be a boon to all the citizens, relief from misleading by the fraudulent builders. RERA is not bad news; it’s just solving the concern of an unstructured sector by bringing about systems in process way which will give a new perspective to the real estate sector.
 
What all changes will RERA bring about? Let’s find it out.
 
RERA Registration Number:
 
A new system in real estate sector has every builder/broker has to register under RERA in order to to sell and advertise projects. As soon as they register under RERA, there will be a verification process whereby the authority will verify documents of the person and once all documents are in place the person will be allotted with RERA Registration Number. This RERA Registration Number is associated with the online identity of the builder/broker.
 
Also, it is important to note that there is no need for builder to register the project if it has already received the Completion Certificate & Occupancy Certificate. Builders have to give all the details of the project on the MAHA-RERA website (https://maharera.mahaonline.gov.in/) where builder has to regularly update status of the project. This is an open information that can be accessed by anyone who has already invested in or is looking to invest in the project.
 
The new system mentions, no advertisements, sales or promotions can be done for any ongoing projects if the project is not registered under RERA unless of course the builder is equipped with Occupancy Letter and Completion Letter he can advertise the project. This system will bring a professionalism in real estate sector.
 
Transparency:
 
Under RERA, builder has to be specific about his construction plans. Real estate sector always faced lack in transparency. Buyers use to hesitate investing in under construction projects as there was less transparency. RERA will bring that confidence and a sigh of relief amongst buyers where they will be aware of all the happenings in the project;
 
No Misleading Advertisement:
 
From now on, no advertisements will be deceptive. All advertisers have to convey true information about the area, offers, amenities etc. RERA has come up with some stringent rules and will take strict action against people advertising unregistered project under RERA.
Real estate will give right to information to its buyer. All the minor and major details will be given to buyers such as electricity, water, maintenance, sanitation system etc. Homebuyer will be provided with the date of completion of the project and date of possession.
 
Under RERA, all builders have to deliver projects on promised date. If by any chance builder fails on his promise he is inclined to return whole amount to the buyer and also pay buyer the interest fixed in the agreement.
 
RERA may not influence the price but it’s certainly influences the process for betterment where a buyer is aware of what is happening in the project he has invested in. There will be no misleading from builders side, no misleading in advertisements or regarding any information.
 
Agent Communication:
 
Under RERA there will be no broker manipulating homebuyers. As RERA regulator says all the builders have to notify the names of agents dealing with their projects on RERA website. So now on, there wouldn’t be any fraud or false representation in any aspect. By registering under RERA, broker will get a good image in the market and will bring a credibility in the sector. Agents will now have to convey all the information needed while booking an apartment, any default on the side of the agent will lead to a penalty of 5 % of flat cost which will be borne by the agent.
 
Bottom Line:
 
RERA will create a goodwill for builders and brokers in real estate world. Homebuyers will feel secure in investing in new upcoming projects with a well-laid information. This new system is well structured and giving a breath of relief to homebuyers. RERA aims to safeguard homebuyers from rogue builders and agents.

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