RERA helps augment buyer confidence in real estate
The skyrocketing price levels and the rampant malpractices in the real estate market prior to the introduction of the Real Estate (Regulation and Development) Act, 2016 [RERA], had left the buyer community in an abominable mess. However, with the RERA in place, the buyers can now invest in the property market without pondering much about the perils of the same.
Needless to say, the transparency that the Real Estate (Regulation and Development) Act (RERA) has infused in the primary market, has allowed the homebuyers to look forward to a simpler and risk-averse journey, sans variegated pitfalls.
With the modalities of launching and operating projects becoming stricter, the organised players in the market have now started to garner attention, like never before! Here are some of the prime reasons for the augmenting popularity of the RERA approved homes:
As per the provisions of RERA, the developer is held liable for a period of five years, in case there is a defect in workmanship, quality, structural defects or any other obligations as mentioned in the agreement of sale. It is mandatorily the duty of the developer to provide for such defects within a span of 30 days from the date of the complaint, without levying any further charges. The applicability of this provision has posed a considerable challenge for the small developers who will now have to clearly state their liabilities in a transparent manner.
Levy of penalties on the errant builders: The enactment of RERA has indeed been a blow for the unscrupulous players in the market. To protect the interest of the homebuyers, RERA has imposed heavy penalties on the builders for the unnecessary delay caused in the completion of the project or for the non-compliance of the RERA norms. The builders are liable to pay 10 percent interest to the buyers on the invested amount as the penalty for the delay caused therein. This means that the developers will now be required to expedite the delivery of their projects which again is a harsh move, especially for the smaller players in the market.
Redressal of grievances in a timely manner: The provisions of RERA call for a speedy redressal of grievances against errant builders, arising out of residential or commercial projects. According to the Act, the consumer complaints will now be addressed within a span of 60 days, thereby protecting the buyers from exploitative builders and subsequently increasing the investment prospects in the real estate industry.
Obtaining Occupancy Certificate (OC) has been made mandatory: The Occupancy Certificate implies that the building has duly complied with all the required standards and the safety laws, and is now safe to occupy. The provisions of RERA make it mandatory for the developers to obtain the occupancy certificate before handing out the possession of the property to the buyers. In case of new projects, the developer must obtain the commencement certificate, before advertising or sell his project in any form. The Commencement Certificate is a document attesting that all necessary approvals have been acquired to start the construction of the project. Violation of this norm will attract a hefty penalty.
The implementation of RERA has helped the buyers to bid goodbye to inordinate project delays and shady constructions. Not only this, the attention has also drastically drifted from the unorganised market towards the reputed builders, owing to the transparency and established governance processes that they claim. The increasingly onerous burden of compliance for the smaller players in the market has left them with no choice but to join hands with the larger developers to help revive their stalled projects. Under the shelters of the Act as mentioned herein, the interest of the buyers is undoubtedly accelerating towards the RERA approved homes and is expected to proliferate further in the quarters to come.