With respect to best property in India, over the past week
no news story has garnered as much attention as has news concerning the Real
Estate Regulatory Act (RERA). The RERA is expected to be a game changer and it
is believed by most that once it is fully complied with, buying and selling
real estate in India will become easier and far more transparent. For India's
real estate sector to grow and to attract investment from within India and
investment from overseas investors, it needs to become regulated by a powerful
act such as the RERA.
The Hope Vs Reality
It may be hoped by many buyers who
received their completed units after years of delay before the RERA was enacted
that they may be able to earn the attractive rate of interest on money that
home buyers are eligible to earn on delayed projects today after RERA has
become the law of the land. Yet this is not possible as under the
RERA only
those projects that are registered with RERA may be taken action upon by the
regulator. Projects that are not registered with the RERA cannot be acted upon
by the regulator.
The real estate authority will not
be able to penalize builders on delays on the builders projects that had
already been completed before May 1 2017. The RERA for different states can
only penalize projects after such projects are registered with the RERA and
subsequent to which the builder defaults on the agreed upon completion
timeline.
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About Completion Times
The Chairman RERA and former Chief
Secretary of Madhya Pradesh has stated that the authorities would decide the
completion timeline of on-going projects. As such on-going projects are
registered with the authorities, their timelines shall be decided on a case to
case basis. The additional secretary housing urban development stated that the
RERA can only function under rules that have been specified and cannot exceed
such preestablished rules. Hence according to the best property site in India, ongoing projects
will be registered with the RERA which will then provide such projects with an
appropriate completion timeline.
A Suitable Recourse to Home Buyers
Thus homebuyers will have an option
to reach out to courts of law to resolve their genuine complaints and in appropriate
cases they may even approach the RERA Regulator, however the Regulator cannot
take action against builders who created delays on earlier projects.
Conclusion
The RERA is an elegant, fair, and
balanced act which does a delicate balancing act keeping in mind the best
interest of seemingly opposed builders and buyers. Builders who follow the
letter of the law have very little to fear from the Regulator while buyers who
venture to buy property have the added confidence of knowing that their best
interest in being kept in mind by the Regulator.
