What is RERA? The Real Estate (Regulation and Development) Act, 2016 - All you need to know about RERA
WHAT IS THE RERA?
RERA, The Real Estate (Regulation and Development) Act, 2016 is an Act passed by the Indian Parliament. The RERA seeks to protect the interests of property buyers and also boost investments in the real estate industry. The Rajya Sabha passed the RERA bill on 10th March 2016, followed by the Lok Sabha on 15th March 2016 and it came into force from 1st May 2016. 59 of its 92 sections were notified on 1st May 2016 and the remaining provisions came into force from 1st May 2017. Under the Act, the Central and State Governments are required to notify their own rules under the Act, six months, on the basis of the model rules framed under the central Act.
For long, property buyers have complained that real estate transactions were lopsided and heavily in favour of the builders and developers. RERA and the government’s model code, aim to create a more equitable and fair transaction between the seller and the buyer of properties, especially in the primary market. RERA, it is hoped, will make real estate purchase simpler, by bringing in better accountability and transparency, provided that states do not dilute the provisions and the spirit of the central act. The RERA will give the Indian real estate sector its first regulator. The Act makes it mandatory for each state and union territory, to form its own regulator and frame the rules that will govern the functioning of the regulator.
IMPACT OF RERA ON REAL ESTATE INDUSTRY:
• Initial backlog;
• Increased project cost;
• Tight liquidity;
• Rise in cost of capital;
• Increase in project launch time;
Initially, a lot of work is to be done to get the existing and new project registered. Details such as status of each project executed in last 5 years, promoter details, detailed execution plans etc. needs to be prepared. With the advent of RERA, specialized forums such as the State Real Estate Regulatory Authority and the Real Estate Appellate Tribunal will be established for the resolution of disputes pertaining to property buying and the aggrieved party will have no recourse to other consumer forums and civil courts, on such matters. While the RERA sets the groundwork for fast-tracking dispute resolution, the litmus test for its success, will depend on the timely setting up of these new dispute resolution bodies and how these disputes are resolved expeditiously with a degree of finality.
WHICH PROJECTS COME UNDER RERA?
• Residential and commercial projects including plotted ventures;
• Projects measuring more than 500 Sq. Mtrs. or 8 units;
• Projects without Completion Certificate, before commencement of the Act;
• The projects or ventures are only for the purpose of renovation, repair, re-development which does not involve re-allotment and marketing, advertising, selling or new allotment of any apartment, plot or building in the real estate project, will not come under RERA;
• Each phase is to be treated as standalone real estate project requiring fresh registration;
BENEFITS OF RERA?
• Governance and transparency;
• Project efficiency and robust project delivery;
• Standardization and quality;
• Enhance confidence of investors;
• Attract higher investments and PE funding;
• Regulated environment;
For Builders & Developers:
• Common and best practices;
• Increase efficiency;
• Consolidation of sector;
• Corporate branding;
• Higher investment;
• Increase in organized funding;
For Buyers & Investors:
• Significant buyer and investor protection;
• Quality construction and timely delivery;
• Balanced agreements and treatment;
• Transparency - sale based on carpet area;
• Safety of money and transparency on utilization;
• Consolidation of sector (due to mandatory state registration);
• Increased transparency;
• Increased efficiency;
• Minimum litigation by adopting best practices;
In this way, we at Bharat Nirman Limited brings you RERA Registered, HMDA and DTCP Approved Open Plot Ventures, Farm Land Ventures, Gated Community Apartments and Villas, and Commercial spaces in and around Hyderabad city. Bharat Nirman is a well-known real estate brand mainly in Hyderabad, Telangana and Andhra Pradesh with a proven history. It’s not just the fastest growing company, but a brand that has become synonymous for trust. Our strategically located ventures aim to integrate the best amenities and high appreciation in short time to shape a new India to you and your family future. Thus, we became a trusted Real Estate brand in both the Telugu states.
For everyone, property is the most stable, fastest growing and a fruitful investment opportunity with no risk. When you invested in the right property at the right time, it earns you the highest returns compared to other investment options available in the market. At #BharatNirman Limited we don’t sell properties, we regard property as a means for you to achieve your true wealth. We help you invest in your dreams.
Welcome to Bharat Nirman Limited..!