Real estate is one of the largest and most profitable industries in the world. In India, the real estate sector has witnessed a significant boom in recent years, and with the advent of RERA (Real Estate Regulatory Authority), the industry has become more regulated and transparent. In this blog post, we'll explore the importance of RERA registration and why it's essential for both buyers and developers.
What is RERA Act?
RERA stands for Real Estate Regulatory Authority formed under the Real Estate Regulation and Development Act introduced by the government in the year 2016. Its whole purpose is to protect the buyer’s interest and put a stop to the real estate mal-practices. The rules and regulations stated under this act is to be followed by the real estate companied across all Indian states, for both residential and commercial projects.
Benefits of RERA Registration:
RERA registration is important because it provides protection to buyers. The act ensures that developers cannot deceive buyers by promising one thing and delivering another. RERA also mandates that developers provide every minute information to the buyer concerning the project, including project status, approvals, and completion date. This information helps buyers make an informed decision.Regulates Developers
Developers who are registered with RERA must adhere to certain standards and regulations. These standards ensure that the developer delivers what they promised, and transparency between the buyer and developer is maintained. Hence eliminating any hidden clause.Standardised Carpet Area:
The builders calculate the property price based on the Carpet Area. Earlier, the carpet area was not defined. Due to the lack of standardisation, every builder had their own method of calculation. But in current time, the carpet area has been clearly defined under the RERA Act. The buyers now have to pay only for the area between the walls. Developers cannot inflate the price and charge buyers for any external areas.Ensures Timely Completion
Previously, buyers were subjected to uncertainty of the project completion. The fear of delayed possession was countered by the RERA Act. RERA mandates that developers must complete the project within the stipulated time frame, failing which they will have to pay a penalty. This ensures on time handover of the project and eliminates any possession related issues.Encourages Investment
RERA registration encourages investment in the real estate sector. Since RERA provides protection to buyers, more people are willing to invest in the sector. This, in turn, leads to an increase in demand for properties and stimulates growth in the sector.Increases Credibility
RERA registration increases the credibility of the developer. Buyers are more likely to trust developers who are registered with RERA. This leads to more business for the developer.Reduces Disputes
RERA registration reduces the number of disputes between buyers and developers. The act provides a mechanism for resolving disputes, which helps to reduce the number of legal cases.