A Look at RERA’s One Year Journey
May 02, 2018 Real Estate News
The Real Estate Regulation Act (RERA) was formed with a view to making the real estate sector transparent and organised while ending all the problems faced by the buyers. This much anticipated RERA Act has turned one as it came into effect on May 1, 2017. However, it does not seem that it has completely fulfilled its objective.
Here is a look back at RERA’s journey so far.
• All states haven’t notified the law yet. Out of all the states, only Punjab, Madhya Pradesh and Maharashtra have been able to set up full time Real Estate regulatory authority. Therefore still 26 states are still without a regulator.
• Only 19 states and union territories gave a working portal but the information present in the websites are greatly confusing. Most of the information are half- cooked and lack the real information.
• Only 15 states have been able to set up work towards setting up the real estate appellate tribunals. This means that presently there are not many tribunals to deliver the justice. After one year, the act has failed to set up in place even the basic structure of the law to function properly.
But there is another side of the coin too. RERA has changes the mindset of the buyers or we can say that it has made the buyers more informed. RERA has changed the way the property was bought and sold in the country. Now each and every buyer knows about RERA which is a huge change in itself. Such as now the buyers know that a builder must be registered with RERA. And they should avoid those who are not registered with RERA.
Gone are the days when buyers end up spending their entire saving without getting anything. Now they know that the builders cannot spend their money on any other project, the money given for a particular project needs to be deposited in an escrow account first. For this reason, the launch of new projects has been decreased for about 60 percent in 2018 as compared to the previous years.
The organised players of the real estate industry are in a better position while the unorganised players have been facing stringent compliance norms under the Act. Due to RERA, only credible and organised players who are honest will survive in the future. This is good news for the buyers as they will get the quality product within strict deadlines.
Also because of the launch of the RERA act, Indian real estate sector is being perceived differently by the foreign investor as the act has increased transparency in the business.
Hence overall we can conclude that RERA has indeed improved buyer’s sentiment but its authorities’ failure to set up formal structures in place.
Here is a look back at RERA’s journey so far.
• All states haven’t notified the law yet. Out of all the states, only Punjab, Madhya Pradesh and Maharashtra have been able to set up full time Real Estate regulatory authority. Therefore still 26 states are still without a regulator.
• Only 19 states and union territories gave a working portal but the information present in the websites are greatly confusing. Most of the information are half- cooked and lack the real information.
• Only 15 states have been able to set up work towards setting up the real estate appellate tribunals. This means that presently there are not many tribunals to deliver the justice. After one year, the act has failed to set up in place even the basic structure of the law to function properly.
But there is another side of the coin too. RERA has changes the mindset of the buyers or we can say that it has made the buyers more informed. RERA has changed the way the property was bought and sold in the country. Now each and every buyer knows about RERA which is a huge change in itself. Such as now the buyers know that a builder must be registered with RERA. And they should avoid those who are not registered with RERA.
Gone are the days when buyers end up spending their entire saving without getting anything. Now they know that the builders cannot spend their money on any other project, the money given for a particular project needs to be deposited in an escrow account first. For this reason, the launch of new projects has been decreased for about 60 percent in 2018 as compared to the previous years.
The organised players of the real estate industry are in a better position while the unorganised players have been facing stringent compliance norms under the Act. Due to RERA, only credible and organised players who are honest will survive in the future. This is good news for the buyers as they will get the quality product within strict deadlines.
Also because of the launch of the RERA act, Indian real estate sector is being perceived differently by the foreign investor as the act has increased transparency in the business.
Hence overall we can conclude that RERA has indeed improved buyer’s sentiment but its authorities’ failure to set up formal structures in place.
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