The Government of India passed the RERA Act in 2016. It was launched to purge bottlenecks that are widespread in the current real estate sector in India. RERA has been actively implemented in most parts of India. Since its inception in 2016, it brought multiple changes in the real estate sectors of over 22 Indian cities and is also implemented in 6 union territories.
So far, over 33,906 real estate agents and a total of 42,726 housing projects have been registered with RERA. The regulating authority has also resolved over 20,000 complaints and offered redressal to the same.
Introduction to RERA
To learn about the functions, applicability, and importance of the Act, one must first familiarise themselves with the answer to “what is RERA?”
For starters, the Real Estate Regulatory Authority is the RERA full form, and when it comes to the real estate industry, the authoritative body stands for transparency. Its primary objective is to eliminate such inconsistencies that tend to create bottlenecks within the sector and to regulate them.
Also Read: Best place to invest in Hyderabad
RERA Act in India
RERA Act is currently enforced across the states of Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Goa, Himachal Pradesh, Haryana, Kerala, Karnataka, Maharashtra, Madhya Pradesh, Odisha, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, and Uttarakhand.
It is also active in union territories like Chandigarh, Andaman & Nicobar, Delhi, Dadra & Nagar, and Daman & Diu, Delhi, Puducherry, and Lakshadweep.
There are numerous ways of how RERA is altering the real estate market. For example, MahaRERA (the Maharashtra RERA) has achieved a 99.7% record of registering real estate agents with accurate data. The Tamil Nadu RERA (TNRERA) is the fourth highest in terms of registered projects.
The impact of RERA on the real estate sector
Besides increasing the accountability of real estate agents, RERA has had the following impacts on the real estate sector –
- It has significantly reduced the delays in projects and their mis-selling.
- Dividing RERA into small regulatory bodies has made it possible to keep track of the project development in different states and territories easily.
- The uniformity brought along by the RERA Act aims at protecting the interests of both buyers and developers.
The impact of RERA on homebuyers
There are several benefits of the RERA act for first time home buyers. Here’s a few of them –
- With increased accountability and transparency, homebuyers would be up to date about the progress of construction.
- Developers are now liable to pay buyers penal fees and charges for project delays.
- The RERA act states that a home buyer has to pay only for the area enclosed by walls. It prevents builders from charging them for the super-built area.
- Homebuyers can ask to report any number of construction defects for up to 5 years and get them rectified by the developers.
- Developers must resolve homebuyer’s grievance within 120 days from the date it has been filed.
- It further prohibits developers from charging more than 10% as advance.
- Also, they cannot make additions or alterations to the property plan without consulting two-thirds of the property owners.
- It has further simplified the process of availing home loan for the home buyers.
Building a home is easier said than done. A lot of research, time and energy go into the process of building a decent home. All of which makes it even more important to buy a housing project that is registered with RERA.
Choosing a project that complies with the RERA Act will ensure transparency and minimize the risk of incurring a loss. Home-buyers can further ensure their investment is reasonable by opting for an NBFC like Bajaj Finserv who offer affordable Home Loans at competitive rates of interest.
They also provide pre-approved offers that make availing loans easy and quick. Pre-approved offers are available on several financial products including personal loans, business loans, home loans, etc. You can check your pre-approved offer by providing only some essential details like name and contact number.
The RERA Act is meant to streamline the relationship between buyers and sellers of an Indian real estate industry which lacks transparency in its grassroots. If you are a prospective homebuyer, understand the regulations of the act to benefit from it. Refer to leading lenders for the most beneficial terms on a home loan to purchase a residential property. Make sure you know important home loan fees and charges before applying.