Jun 27, 2023Homes and People

RERA Success Stories

by Godrej Properties Limited

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RERA Benefits Home Buyers

Implementing the Real Estate (Regulation and Development) Act, 2016 (RERA) in India has transformed the real estate sector, benefiting home buyers in numerous ways. Increased transparency, timely project delivery, buyer protection, and quality control are among the key advantages brought by RERA.

Success Stories Showing How RERA Has Benefited Homebuyers

1. Greater Transparency

One of RERA’s main requirements is that developers register their projects with the regulatory body and submit comprehensive information about them, including the project’s plans, budget, and completion schedule. Because of this, the real estate industry is now more transparent, enabling homebuyers to make better choices.

2. Project Delivery On Time

RERA requires developers to finish projects by the predetermined deadline. The developer is responsible for compensating the homebuyers for any delays. This has decreased occurrences.

3. Protection Of Buyer’s Rights

RERA has introduced various measures to protect the rights of home buyers. It requires developers to use standard sale agreements, clearly mentioning the rights and obligations of both parties. It also prohibits developers from making any changes to the project without the buyers' consent. These provisions have provided a legal framework to safeguard the interests of home buyers.

4. Escrow Account Requirement

RERA compulsions that developers must deposit a certain percentage of the project funds in a separate escrow account. This ensures that the funds collected from home buyers are used only for the specific project and not diverted elsewhere. It provides financial security to home buyers and reduces the risk of developers misusing the funds.

5. Redressal Mechanism

RERA has established state-level regulatory bodies and appellate tribunals to resolve concerns and conflicts between developers and house purchasers. These forums provide a speedy and cost-effective resolution process, enabling home buyers to seek redressal for any issues or concerns they may have.

7. Quality Control

RERA makes it mandatory for developers to provide quality construction and adhere to building standards. Developers must provide a five-year warranty against structural defects in the project. This ensures that home buyers receive properties of good quality, reducing the risk of substandard construction.

Final Thoughts 

Overall, implementing RERA has brought about positive changes in the real estate sector in India. It has empowered home buyers, increased transparency, and provided a reliable dispute resolution framework. These success stories highlight how RERA has benefited home buyers and contributed to a more regulated and consumer-friendly real estate market.

 

Frequently Asked Questions

1. How has RERA improved the overall real estate market? 

Ans: RERA has improved the overall real estate market in several ways by enhancing credibility and trust, industry Practices, reducing risks and increasing foreign investment.

2. Which projects fall under the purview of the RERA Act?

Ans: The RERA Act encompasses both residential and commercial real estate projects, such as apartments, plots, and buildings, as long as they meet the specified criteria outlined in the Act. This ensures that a wide range of real estate developments fall under the regulatory framework of RERA.

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