The real estate sector plays a crucial role in the economic growth of any country. However, the absence of proper regulation and transparency has often led to various issues and challenges for both buyers and developers. In order to address these concerns and protect the interests of all stakeholders involved, our Government has established a Real Estate Regulatory Authority (RERA). In this blog post, we will explore the significant role played by RERA in property matters and how it has revolutionized the real estate industry.
1. Ensuring Transparency and Accountability:
One of the primary objectives of RERA is to promote transparency and accountability in the real estate sector. RERA acts as a regulatory body that governs and monitors the activities of real estate developers, agents, and promoters. It ensures that all relevant information regarding a project, such as project plans, approvals, land status, and completion timelines, is made available to buyers. This transparency helps buyers make informed decisions, reduces fraudulent practices, and enhances trust between buyers and developers.
2. Safeguarding Buyer’s Interests:
RERA plays a crucial role in safeguarding the interests of property buyers. It mandates developers to register their projects with the authority, and it sets guidelines for the sale and purchase of properties. RERA requires developers to maintain a separate escrow account of money for each project, where they must deposit a certain percentage of the funds collected from buyers of that project. This measure ensures that the funds are utilized only for the development of the specific project without diversion of funds, protecting buyers from financial misappropriation and subsequent delay or loss.
3. Timely Project Completion:
One of the major concerns for property buyers is the delay in project completion. RERA has introduced stringent guidelines and penalties to discourage developers from extending project timelines without valid reasons. It mandates developers to provide accurate project completion timelines at the time of registration, and failure to adhere to the committed timeline can result in significant penalties. This provision has led to greater accountability among developers, ensuring timely completion of projects and providing relief to buyers.
4. Dispute Resolution Mechanism:
RERA provides a dedicated platform for addressing disputes and grievances related to real estate transactions. It establishes Real Estate Appellate Tribunals (REATs) to handle complaints and appeals. These tribunals have the authority to mediate, adjudicate, and provide appropriate relief to affected parties. The existence of a transparent dispute resolution mechanism helps in resolving conflicts efficiently and expeditiously, reducing the burden on the judicial system as well as reducing financial burden due to litigation for the buyer.
5. Professionalisation of Real Estate Sector:
RERA has brought about a paradigm shift in the real estate sector by promoting professionalism and ethical practices. It mandates real estate agents and brokers to register themselves with the authority, ensuring that they meet certain competency and qualification requirements. This move helps in weeding out unscrupulous agents and promotes transparency and accountability in real estate transactions.
The establishment of the Real Estate Regulatory Authority (RERA) has significantly transformed the real estate sector by bringing in transparency, accountability, and consumer protection. RERA’s role in ensuring timely project completion, safeguarding buyer’s interests, and providing a mechanism for dispute resolution has instilled confidence in property buyers and has given a much-needed boost to the industry. As the real estate sector continues to evolve, RERA will play a crucial role in shaping a transparent and sustainable real estate ecosystem that benefits all stakeholders involved.
Here are a few relevant links that are related to RERA
- Carpet Area as defined by RERA
- Why is Carpet Area important
- Another blog with more information on RERA
Author: R. Suresha, COO at Nemmadi.in