Undeniably, the real estate sector in India will grow at a very high rate in the next decade. To put in simple words, we expect to witness a load of international and domestic investment. This is because of the high transparency in the real estate market. In particular, RERA stands for the Real Estate Act. The central government passed it in 2016. The reason to introduce this was to address various issues, which were coming in between the buyers and the sellers. It protects the buyers from all the false practices that happen in the market. To clarify, it helps to maintain transparency. This is to ensure increased investment. In fact, with the pandemic situation going on, this act has helped many people invest in the right kind of properties. Furthermore, this was done by giving them the chance to be hopeful in this dark time.
RERA Impact: Why did this Act come out?
To begin with, the buyers in the market were facing multiple issues. Subsequently, RERA came as a saviour. The real estate sector in India was going down because of all the malpractices that were breeding here. Accordingly, the government came up with this act was in order to give a boost to the sector. Initially, real estate transactions were not at all transparent and accountable. This is the reason why this regulation was very important and essential.
Real Estate Market Impact When You Want to Buy a House
When you indulge in buying a property, there is a specific time duration that the seller promises. They assure that the house will be developed by that time. In case the house is not complete by then, you can withdraw from the project and you will get compensation.
Most importantly, the act protects your interest and solves all the grievances very fast. In fact, it standardised the entire model of the sale agreement for all the buyers.
To put in simple words, you can also now question the developer on all the steps they will carry out during the entire process of development. Evidently, the entire purpose of the act was to make the buying process very smooth.
RERA Impact on Builders and The Buyers
All the builders will have to watch out in the market and would have to go the ethical way. There are various regulations that are given out by the government. The major regulation is that all proposed projects exceeding an area of 500 square metres or more than eight apartments must be registered with the respective state RERAs.
The builders will have to deposit about 70% of the project money in the bank accounts through various checks. This means that the builders will now not engage in any fraud transactions. There will be no money laundering now. Every rupee you spend will be accounted for.
There will be a proper sales agreement between both the parties. Subsequently, the authorities will give these.
Summing up
All this transparency in the sector has now increased more and more people to come forward and invest in the industry. This will bring down the malpractices on fraudulent activities going down. If more and more people will buy properties, eventually the demand will go up and more and more people would be able to have a good living. This is a very good app, which will help all the buyers in coming forward and making their dreams come true of buying a house. The impact of RERA on the real estate sector has been positive and RERA affects buyers in the best way.
This blog intended to help you understand how RERA impact a real estate buyer.
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