May, 2016 witnessed the historical day in India since Real Estate Sector came under the Direct Regulations by Act and for the first time officially Governance Applied, which has changed the approach towards Real Estate over to night. Not only domestic but also NRI took breath of peace for the first time since first time Judiciary Came to rescue for their interest and safety for the money they invest.
The Indian property market always been an attractive place for the NRIs in terms of big investments. It’s a habit and generally all NRI wish to earn in Dollar and to invest in property in home country and for that Real Estate remained the first choice and good investment opportunity for a long-term profit or regular lease rental income.
Till RERA implemented in May, 2016, NRI investment flow was continue but it was with fear factor and in limited quantum. To attract NRI investments, Government policies also tried, Builders lobby also made various schemes to attract investments but lack of Judiciary in Real Estate and Good Governance in real estate business, the response were not as expected. But now RERA is there, Judiciary started strict compliance’s on part of Builders, new ways of working and its discipline introduced and monitoring started closely. These all resulted into boosting confidence of all be it NRI or Indian, in coming time huge investments and boom in real estate sector is likely to happen.
Advantages of RERA for NRIs looking forward to invest in the real estate sector of India.
- After RERA, any Real Estate project has to follow strict rules and regulations as prescribed by RERA, which resulted into more transparency and clarity for all factor associated with the Project.
- Big risk of Land Title Clearance, Diversion of Fund by the builders, development of project in unplanned way, delay in completion of project, Poor quality and many more have gone permanently since these all factors are closely looked after by the RERA Authority and regular updates of the project is handy anywhere in the world since progress of the project with technical data are required to be displayed on website.
- Due to the presence of RERA, the investment in the Indian realty sector will reap regular rental returns along with the appreciation of the property.
- RERA has simplified the purchasing process, thus making it easier for buyers to do transactions and avail the benefits of opting for the home loan.
- The interesting investment opportunities with lighter regulations has increased the transparency, price stability and enhanced affordability.
The suo motto of RERA to propel the realty sector of India on the right track has brought many positive changes in the said sector, making it more reliable for NRIs from an investment point of view.
Some of the important points to be kept in mind while NRI planning to buy Real Estate Property in India
Although the RERA is there to safeguard the investment of buyers, we would recommend NRI buyers to follow a careful and vigilant documentation while investing in the sector with the help of Professionals. Below are the documents that an NRI buyer must keep handy while buying property in their homeland.
Must go for RERA Registered Projects only
Transaction with builder must be documented and all agreement like agreement to sale, allotment letter, booking form etc must be properly gone through before executing since there are many chance for escape of certain responsibility by builder. More advisable to take professional help for executing these all documents.
Execute proper Power of Attorney (POA) for dealing with the builder
Indian PAN card must be taken.
Conclusion
After implementation of RERA ACT, index of good governance, discipline in Real Estate Sector, faith in investments in Real Estate field gone up day by day and home buyers are feeling very happy moments at the time handing over their hard earned money to builder because now there is someone who cares for their interest.
Disclaimer – The above summary is based on the personal interpretation of the revised regulations, which may differ person to person. Hence, the readers are expected to take expert opinion before placing reliance on this article.
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