Status as on 19/06/2019
RERA or the Real Estate Regulation Act, has been a relief to consumers of the Real Estate Industry. With a consumer friendly approach, RERA has managed to regain trust of consumers in the Real Estate market. By providing for a framework, within which the developers are bound by strict compliances, RERA has proven to affix accountability and provide for quick adjudication procedures for dispute settlement since its inception. Other than dispute settlement, RERA allows for buyers to make an informed decision about investing in real estate. It has provided for one platform which will regulate all real estate developmental projects, and hence allow buyers to filter out fake/bogus projects and ensure the safety of their investment. Buyers may now avail information about different projects just at the click of a button with respect to key features of projects along with quarterly updates on construction of projects. RERA has the power to cancel on going licenses in case the developers do not meet the requirements of the Act; the authority may also require developers to pay compensation to buyers in case of unaccounted delay in completion.
In the last two years, RERA rules have been adopted over 22 states and 6 Union territories, making it a legislation which is impacting, and improving, dispute settlement procedures for buyers across the country. The Act, establishes special fast track courts/tribunals, which are consumer friendly, thereby bringing down the cost of litigation and making itself accessible to all sections of society. By operating as an active real estate authority, the RERA aims to transform the real estate industry into a highly functional and transparent industry, by providing for ease of accessibility along with a highly efficient dispute resolution system.
RERA, by securing the interest of the consumers, has legitimized the Real Estate industry. It has created barriers, which will force bogus developers out of the market, and ensure that only those developers survive which are both willing and able, to provide for efficient and quality real estate development. RERA, has taken cognizance of the multiple ways by which consumers have been cheated in the past, and provided for solutions through their regulation mechanisms. For example, earlier, real estate agents or property dealers used to facilitate various frauds committed by builders, however according to the provisions of RERA, agents now need to obtain certificates of acknowledgment from the authority in order to be certified real estate agents and only those agents which are approved by the authority may facilitate sale/purchase in the real estate industry.
72% of home buyers feel secure and confident to approach RERA for compensation for delays, however others prefer a refund and some even prefer waiting for their homes despite the delay, according to a study conducted by Magicbricks.com. This figure is an indication to the restoration of consumer confidence in the industry, which is the result of a huge number of buyers being satisfied by RERA courts and authorities.