The real estate sector was unorganized before RERA came into force. The grievances of the buyer and seller were addressed in consumer courts then. As there was no proper regulation, investment was not very popular in real estate but RERA brought in more transparency and also set up a grievance redressal forum. RERA protects the interests of consumers, builders, tenants, owners, etc. basically anyone who is associated with real estate. RERA has so far celebrated 5 birthdays and is 5 years old now. Real estate is a vast industry and RERA has given it a structure. RERA, after 5 years of enactment has transformed the real estate sector into a standardized industry where transparency and accountability is maintained. It developed trust among the stake holders. Let’s highlight on the achievements of RERA in Telangana in these 5 years.
1.Know About RERA in Telangana
RERA is the Real Estate Regulation and Development Act. It came into existence in Telangana on August 4, 2017 with an aim to legitimize the real estate sector and convert it into a robust, transparent and credible industry. RERA has built confidence in the real estate sector in terms of buying and selling and boosted the sector. It protects the consumers as well as the developers. RERA has an adjudicating mechanism for fast dispute redressal and also appellate Tribunals to hear appeals.
It is mandatory for every builder to register his project with RERA before he begins to promote it. He has to get all required approvals and then upload each and every detail of the project on the website of RERA. In case of violation of Act, heavy penalties will be imposed on the developer. Details of the project need to be updated quarterly. 70% of the amount has to be credited in a bank so as to carry on the construction process smoothly. The builders are liable to use this amount for the construction of the project. Investors can view all the details of the project before going for an investment. If the project is not ready as per the given timeline in normal conditions, then the builder has to pay an interest rate of 2% above SBI’s marginal cost of lending rate to the buyer.
2.A Paradigm Shift in 5 Years
RERA has created a convincing image of the Indian Real Estate sector and has proved helpful for the developers and the buyers in these 5 years. RERA was a paradigm shift in real estate sector and it developed and restored faith of home buyers in the industry. After the enforcement of RERA, fraudulent practices and possibilities of mistakes during the construction process or transactions, were much reduced, especially from uncanny builders. RERA also favoured the trustworthy and renowned builders by helping them cement and enhance their credibility before potential buyers, through the website of RERA.
It is RERA which clearly defined the carpet area and removed the ambiguities which were involved with this term. RERA has developed mutual trust between the builders and the buyers. It has brought in a lot of discipline in the realty sector. RERA certification means ‘it is a branded product’. It ensures customers’ satisfaction and also safeguards builders’ interest.
3.Robust Grievance Redressal of RERA
RERA has strengthened the robust grievance redressal system which solves the grievances of the home buyers through its Appellate Tribunal in these 5 years. Citizens, promoters and real estate agents have registered their complaints through the official website of RERA. It is 5 years old and has proved to be that successful authority which can address the complaints and also keep a track of the registered
projects and check if they are keeping to their word. RERA has been performing well and addressing the grievances quickly. As most of the complaints are getting addressed by RERA, only a few cases reach courts, thus saving money and time of buyers as well as builders. RERA helped to reduce the pressure on judicial system.
As citizens or as homebuyers, one can register the complaint online and it will be processed and investigated at the earliest. The citizens also have the access to all the records of RERA registered projects as well as the names of real estate agents and can check the progress of the project and can also confirm if the real estate agent you have approached is registered with RERA. If a homebuyer is not satisfied with the quality of construction of a RERA registered project, then he has the right to approach the respective RERA authorities with his grievance.
The promoters are also being benefitted with RERA. A promoter of a project can also lodge a complaint with RERA for a customer who is not doing his payments regularly. He can also complain against a real estate agent who is illegally charging excessively.
Real Estate Agents can also file a complaint if they are breached with non-payment by the customers or developers registered with RERA.
4.RERA created Transparency and Accountability
RERA has made it mandatory to register the project with it before the developer begins any advertisement. RERA registered projects are guaranteed projects, which refrain from false and big statements or promises just to lure the customers. By uploading all the details of the registered project on the website of RERA, the developer creates transparency and later he will be held accountable if he doesn’t abide by his promises. He is accountable for the defects found in the construction of his project within 5 years of handover and is responsible to rectify those defects without collecting any extra charges from the homebuyers. If the promoter fails to do so, then the homebuyers are entitled to complain and get a compensation for the same as per RERA Act. Clear details of the carpet area and property price rationalization also simplified the process and boosted the trust of homebuyers in RERA. Transparency and accountability are the greatest achievements of RERA in these 5 years.
5.RERA is 5 years Old
RERA aims to regulate the real estate and put a check on fraudulent transactions. It also ensures a fast settlement of grievances through its Appellate Tribunal. RERA, which is 5 years old now, has a website which maintains the records of all the projects and agents registered with it, for public reference. Not only the projects but also the real estate agents have to register themselves with RERA and renew their certificates every five years. Every project has to be registered with RERA and it has to be updated quarterly. RERA has proved itself as a proper ‘guidebook’ for the real estate rules and regulations. It has very clearly stated the Dos and Don’ts with standard norms.
After 5 years, RERA registered projects are considered to be the reputation of the developer. It has become the hallmark of credibility and undisputable viability of a project. One can notice RERA Registration number is being mentioned in the advertisement of real estate projects. Real estate developers have become accountable and homebuyers are getting the rightful compensation under RERA Act. Projects are maintaining timely delivery because the developer has to face heavy penalties if he is not able to finish the project as per the scheduled date. The regulations of the Act had been a difficult to swallow in the becoming but in due course of time it is realized that these rules and regulations are beneficial to both the parties, the promoters as well as the homebuyers. Transparency is also maintained about the registered project.
Written by Nikhil Gattu
