RERA is the first legislation, which protects buyers from sometimes unethical, and mostly frustrating behaviour of builders and developers. RERA is bringing accountability to the real estate sector.
How does RERA protect buyers?
- It mandates estate agents and even intermediary websites to get themselves registered, without which, they cannot sell or offer advice on properties;
- It requires all commercial and residential projects (over 500 sq. mtrs. and over 8 apartments) to be registered;
- It requires mandatory registration of all alterations to the real estate project, which involves marketing, advertising, or new allotment of any real estate project;
- It prohibits advertising, marketing, selling etc. of any project, which is not registered;
- It prohibits a builder from accepting more that 10% before agreement of sale of registered;
- It requires builder to deposit 70% of the amount received to deposited in a bank, and the amount withdrawn to be proportionate to percentage of completion;
- It requires builder to refund complete cost of property for making false or incorrect statements to buyers.
RERA has brought in financial discipline, and transparency into the sector, and has brought in accountability from all parties involved in a transaction. We can already see the results, several projects which were launched before RERA was implemented have seized to advertise their projects because they have not received clearances from authorities. The builders, who didn’t blink before encroaching on government properties are getting the property documents vetted multiple times. So now, we have an Act in place, what remains is implementing it the right way.