Most importantly, the Act brings in Real Estate Regulatory Authorities who will be in charge to ensure compliance with the law. With the authority in place, all projects and properties should be registered with the authority. Further, RERA provides provisions to set up the appellate tribunals to deal with housing estate disputes.
Another important aspect, is the registration of real estate agents under RERA. This will ensure that the general public can lodge complaints and raise disputes against agents who fail to provide the required services. The inclusion of insurance and obligation of promoters to ensure compliance with real estate insurance is another stepping stone in the right direction. This will open up the market for real estate insurances. The recent enactment of Benami Transactions (Prohibition) Amendment Act, 2016 along with the 70% escrow provisions under RERA will also enable buyers to secure their investments. In spite of recent demonetization, India still remains a largely cash driven country. Payments to contractors and labor are often by cash and this will delay projects with the inclusion of digital payments. However, buyers should carefully assess the changing legal landscape in the housing estate world before making any quick decisions.
Rentals and leasing will continue to remain a better alternative due to less regulations, stamp duties and other allied fees. However, owning a property still remains priority asset No. 1 for most Indians. RERA is definitely a great move in the right direction. With technology advancements, there are possibilities to ensure transparency and governance in the housing legal sector. It is time for India to take note of the changing landscape and embrace technological advancements to make it a better place.
For more information about the changing landscape and to understand how to comply with RERA, connect here.