Policies, Codes & Other Documents
There was a time when the real estate industry was in the hands of real estate promoters, developers, builders, and property brokers. Typically, these promoters would plan a real estate project and offer it to customers through various means including glitzy advertisements and unbeatable offers.
Once hooked, customers would pay the booking amount and then get stuck with the builder till the property was handed over to customers. Many a time the builders would delay the project by giving some outrageous reasons. That’s not all. Some of the unscrupulous promoters would indulge in unfair trade practices that included
All customers could either wait or approach the courts to get their issues sorted out.
It was not just the customers. In the absence of any regulation, the home loan market too was at the mercy of builders and they could convince financial institutions to offer home loans to buyers with attractive home loan interest rates.
Introduction of RERA
During the past few years the plight of property buyers received attention from the authorities and serious efforts were made to address the issue culminating in RERA. Perhaps, even the financial institutions offering home loans expressed their desire to have a regulator who could streamline the real estate sector.
RERA is the acronym for Real Estate Regulation Authority. RERA owes its existence to the Real Estate (Regulation and Development) Act, 2016 enacted by the Indian Parliament to safeguard the interests of property buyers in the country. The Act came into effect on May 1, 2017. Each state is authorized to set up its own RERA.
The Act protects the interests of the buyer by making the promoters, developers and builders accountable for their actions. Some of the important provisions of the Act are as follows:
As can be seen from the above, the RERA provisions aim at safeguarding the interests of the buyer. Besides, the Act makes the promoters more responsible and can even help them to complete their projects well on time. The Act thrives on transparency and timely completion of projects so that all parties can enjoy a win-win situation.
Registered builders vs. non-registered builders
Some of the major objectives of RERA include reforming the real estate sector, fostering transparency, accountability and discipline in terms of keeping promises made.
One of the important steps under RERA is to register the project with the authority in each state. The registered builders have many advantages that can include
On the other hand, the non-registered builders will have to face a diminishing market as more and more builders take the registration route. The disadvantages of not registering with RERA are several and they may include
If the non-registered builders have projects that are not yet registered, it makes sense to register as otherwise they run the risk of operating in a vastly reduced demand scenario. Now that you know the benefits of owning your dream home from a RERA approved project, we suggest you contact Tata Capital to avail the all-important home loan at attractive home loan interest rates and realize your dream without any hitch. If you want to avail a home loan and need to talk to someone, you can get in touch with Tata Capital experts here.
Policies, Codes & Other Documents