RERA was introduced with an aim to regulate the massive real estate sector. Now while RERA is a central law, real estate is a state issue. Its implementation is dependent on state governments. Thus, a state like Maharashtra was quick to implement RERA leading to an encouraging response with 9000+ real estate agents applying for RERA registration as of August 1st 2017. In Mumbai alone, over 2500 projects have been registered. But states such as Goa and Uttar Pradesh are still considering it and have granted a breather of 3 months. Again, Karnataka, which is estimated to have over 10,000 real estate brokers, has imposed heavy penalty on builders failing to register with the Central RERA Act.
Now while realtors are going through a tough patch, home buyers are seem to be shielded. In effect, when we look at the crystal ball, the future looks interesting:
Home loan rates will look soft in the near future, boosting the state of residential markets for buyers.
Strict regulations on promoters will ensure that construction is completed on time.
Carpet area has been clearly defined in the bill to include usable spaces like kitchen and toilets imparting clarity to the buyer. The buyer pays only for the carpet area and the super built-up area cannot be charged, giving more value for money.
What’s more, RERA will ensure publication on their websites information relating to profile and track record of promoters, details of litigations, project advertisement and prospectus issued, details of apartments, plots and garages, registered agents and consultants, development plan, financial details of the promoters, status of approvals and projects and so on, allowing buyers to take informed and prudent decisions. Looks like RERA is ushering in an interesting era for the realty industry as a whole.
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