Homebuyers can finally reach to a legislative body for shelving their rights. From the construction period to the quality of the final construction every step of development RERA will be the ultimate Dutch uncle. The much-awaited central government’s intervene finally came into action since May 1, 2017 in the form of RERA implementation. For the double-dealing activities of the promoters, real estate sector had reached to a saturation point where prices hit the ceilings and Indian GDP started outflanking as the steady fiscal source of the country i.e. real estate sector found dealing with lack of accountability, standardization and dearth of consumer protection.
“RERA implementation(the undiluted version) will finally bring back positive growth in the realty sector as both builders and the buyers would be brought in one line through the legal route,”-said Mr. Mahesh Somani West Bengal RERA expert. According to him, people should a wait a bit long to buy property in Kolkata until WB notifies its respective RERA norms for the sake of security of their property investment.
Till date the Consumer Protection Act, 1986 has been the only platform hearing the buyers’ grievance including the realty sector. Despite every crucial step taken, this sector continued adding woes to the buyers. Staring from the promoter to the realtor, people involved in the real estate development have been largely seen default every existing regime. Besides high prices and low market demand stood strong against the market recovery. Thus, the requirement of regulating this sector has been the cry of the nation for last few years.
The Real Estate (Regulatory and Development)Act, 2016 were introduced in the parliaments in 2015 and it takes another couple of years to be executed. Since, RERA came into effect on May 1, 2017, most of the states of the country found missing out the deadline. RERA seeks to bring clarity and legitimate practice in the realty sector. RERA can’t perform beyond its legal course. Again, every legal action has its stringent rules which are suffocative at times. With RERA implementation market will be free from the small scale builders who depend a lot on advanced booking amount collected from the consumers for project development. As, for land purchase a promoter needs to pay the entire amount before the registration and an individual escrow account will be maintained by the promoter where he can deposit 70% of the advance amount which can be used for the development purpose of the existing project, which means promoters can’t jumble up money from one to another project like they used to do earlier. Developers will have to register their ongoing projects with the RA (Regulative Authority) within 3 months timeframe.
Experts have some common queries related to the RERA outcome. Like-
Moreover, RERA should answer all these raising queries and clear other related doubts before complete roll out. Since, RERA is all about protecting buyers’ rights, they buyers must be aware of the rights before any agreement or investment.
- Somani Realtors News Network