The Real Estate (Regulation and Development) Act, 2016 (RERA) has brought about a significant change in the way the real estate industry functions in India. The act aims to regulate the sector and protect the interests of buyers. The act has many benefits for buyers, and here are five major ones:
1. Transparency:
Transparency is one of the primary objectives of RERA. Developers are required to register their projects and provide all project details on the RERA website. This includes information on land title status, project layout, completion timeline, and other project details. This ensures that buyers have access to accurate and up-to-date information to make informed decisions. With transparency, buyers can make informed choices based on reliable information, resulting in a more trustworthy and efficient real estate industry.
2. Accountability:
Developers are held accountable for project delivery under RERA. They are required to deposit 70% of the project funds in a separate escrow account to ensure timely completion of the project. This ensures that developers are committed to delivering the project within the promised timeline. It also reduces the risk of project delays or abandonment, which is a common issue in the real estate sector. Developers who fail to meet their obligations are subject to penalties and fines, which further incentivizes them to follow through on their commitments.
3. Quality Assurance:
Under RERA, developers are required to provide a five-year warranty against structural defects in the building. This ensures that the buyer receives a quality product, and any defects that arise are fixed by the developer. This gives buyers peace of mind, knowing that they have invested in a reliable and well-constructed property. This also incentivizes developers to ensure that their projects meet high-quality standards, resulting in better-built properties.
4. Protection of Buyer’s Interest:
The RERA Act has provisions to safeguard the interests of buyers. The act mandates the establishment of Real Estate Regulatory Authorities (RERAs) in each state to handle complaints and disputes between buyers and developers. This makes it easier for buyers to seek redressal in case of any grievances. RERAs have the power to resolve disputes through mediation or arbitration, providing a quicker and cost-effective resolution to issues that buyers may face.
5. Increase in Investment:
The implementation of RERA has instilled confidence in homebuyers, resulting in an increase in investment in the real estate sector. With transparency and accountability, buyers are more likely to invest in real estate projects. This benefits both developers and buyers, resulting in a more robust real estate sector with sustainable growth.
In conclusion, the RERA Act has brought about many benefits for buyers in the real estate industry. Transparency, accountability, quality assurance, protection of buyer’s interests, and an increase in investment are just a few of the benefits that have been observed. The act has created a level playing field for developers and buyers, resulting in a more efficient and reliable real estate sector. Overall, the RERA Act is a significant step towards building a more trustworthy and secure real estate sector in India.
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