Buying apartments in Bangalore from real estate developers has been made easy, all thanks to RERA.
Wondering what RERA is?
RERA stands for Real Estate Regulation Authority was established in the year 2016 by the Indian Government to bring a level of stability and regulation to the entire real estate industry, shifting the focus from the developer to the buyer, so as to promote transparency, citizen centricity and financial discipline.
Each state must define a regulatory body that centralizes and channelizes all the real estate transactions that happen in the state. This was done to regulate and standardize practices across the nation and also in each of the states.
This comes a great news to all those buyers who are planning to buy flats in any part of India
Registration of the Promoter and the Agents:
Every Entity that functions as a real estate promoter has to be register itself at the RERA of that particular state, the Real estate developer shall have to provide all the details of the projects to the Authority, with detailed plans regarding the construction, land papers and the date of completion.
They also need to provide details on the previous five years of their work and allow for annual audits for the same.
This opens the stage for the experienced developers who have all the paper work in place to get through, while the on the fly developer gets to bear the brunt without haphazard plans.
Real Estate agents too need to be registered as agents under RERA, they too shall have to maintain records of the sales done and cannot make undue promises that cannot be delivered by the promoter, failing which they are eligible to be fined.
Transparency to all stages and all players:
The RERA mandates that all details of the project shall need to be updated on the website, with details such as pending approvals, the date of completion, the approvals obtained so far and so on…
The buyer can track all of these changes that are happening and are up-to date on the workings in the projects. This is a unique feature that keeps the buyers informed of it all the changes that are happening in the process of their dream home.
No fears of bankruptcy or financial destability:
It is mandated that the promoter/developer needs to put a minimum of 70% of the proceeds from the sales into a separate account and this account shall be used only for the building costs of this project and this cannot be funneled to make other projects thus taking bankruptcy out of the window.
If in case the certificate of occupancy is not given on the previously agreed date of completion, the buyer can back out of the project and is eligible to be refunded the entire money that he has paid or in compensation for the delay in case they decide to stay with the project.
Warranty and Grievance redressal system:
The developer has to provide a warranty period of five years after completion of the project, there also exists a grievance redressal system that allows the buyer to lodge a formal complaint on the promoter or developer and the system is designed in such a way that the grievance must be addressed within 6 months of the filing.
All in all; RERA may have an effect on the time for the launch of a project but is makes things a lot more streamlined, giving the buyer a transparency never seen before and the power to the customer or the buyer when there was none before.
RERA has definitely made the buying of flats in Bangalore and the rest of India hassle free. RERA has brought smiles on the faces of buyers all around India and brought about changes in the real estate sector for good !!