Here is another informative interview from a renowned, noteworthy Real Estate expert, to share his view on RERA
White Plains, NY -- (ReleaseWire) -- 12/15/2017 -- As a professional, can you enlighten the general what RERA stand means?
RERA means Real Estate (Regulation and Development) Act, 2016. RERA is an Act. It was approved by the Indian Parliament. RERA is purposely approved to protect the benefits of home buyers and also increase investments in the real estate sector. Rajya Sabha passed RERA bill on March 10, 2016, followed by the Lok Sabha on March 15, 2016. Implemented on May 1, 2016.
Why did parliament deem it fit to pass RERA into law?
For decades now home buyers have lamented on real estate transaction that is lopsided and heavily in favor of the developers. RERA regulatory body and the government's model code targeted to create a more equitable and fair transaction between the seller and the buyer of real properties, especially in the open market. RERA is hoped to make real estate transaction simple, accountable and transparent.
RERA is to regulate Indian real estate industry, to mandatory each state and union territory, to control and spell out the rules governing the activities of the profession in India.
Can you highlights the core objectives of the act?
Establishment of the regulatory authority:
The improper coordination of real estate sector has open the sector to so many misleading information and fraudulent transaction. The act establishes Real Estate Regulatory Authority in each state and union territory to correct those anomalies and to protect the interests of the stakeholders, gathering data at a designated sources and creating a forceful complaint redressing system within a supreme period of 60 days.
RERA ensure that every real estate proposed project must be registered under a specific state's RERA were the project is sited. The completed project that is in the market must be registered. Project registration requirement is land status, approval, schedule of completion.
Fund diversification has been a significant cause of delay in delivering projects. To cube fund diversification, project promoters are required to deposit 70% of the received fund into a reserve account according to RERA rules. The reserved percentage is used strictly for construction expenditure which is ratified by a recommended professional
Continual disclosures by promoters:
The Act mandate promoters to update the body about the ongoing project and subsequent progress. Such update is accessible by the property buyers. They can monitor projects on RERA website.
Developers under RERA are required to make an affirmative warranty on interest and landed property title document that can stand against them in case of any fraudulent activity is discovered after completion of property transaction.
For effective implementation of RERA, a violation is strictly offensive and attracts monetary penalty that worth up to 10% of the project cost likewise Imprisonment depending on the degree of default.
How will RERA improve the services of real estate agents?
Real estate agents are to register under their state of practice. The registration will enable them to carry out a legal transaction. Real estate sector worth about US$4 billion and an estimated 500,000 to 900,000 brokers.
RERA will facilitate a massive level of transparency, accountability and trust within real estate profession as they will make every document open to buyers. With RERA in control, brokers stick to the terms of the agreement signed with home buyers. Real estate professional who fails in his duty either by negligence or default is liable to a jail term, monetary fine or both. Above all, RERA eradicates quackery since all real estate agent will register under RERA.
What other benefit is attached to RERA?
Initially, buyers put their life savings in the hands of builders without adequate legal backing which has led to various fraudulent acts, but with the implementation of this Act, the buyer can monitor their investment.
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