History of Real estate has seen many interesting turns and one such interesting turn that we are going to look at is RERA. The Real estate (Regulation and Development) act (RERA) was implemented on May 1st 2016 with 59 of 92 sections notified and the remaining provisions came into force on May 1st 2017.
You can now see that each state and union territory forming its own Regulatory Act with rules and regulations in tandem with the act. Also, with the implementation of RERA we can expect to see an increase in the growth of realty market.
Key Provisions of RERA:
There are many issues that need to be addressed in realty market but project delay is the major issue. Implementation of RERA addresses not only the project delays in addition; you can expect changes in quality of construction, price and title.
- RERA implies that the projects need to be sold based on carpet area not the super built up area like how it is happening now. The current practice of selling the projects based on super built up area will see a dead end with carpet area being mentioned clearly.
- The Professional builders such as Sai Kalyan Builders and Developers who deliver their project on time now see a level playing field. Since RERA makes the developers liable to pay monthly interest on each month delay to the buyer till they take delivery or if buyer opts to walk away from the project then they will receive entire money invested with pre agreed interest rate. Though the developers are not liable for any project delays currently RERA ensures that the delay in completion will make developer liable to pay for it.
- Developers can no longer start a project without registering it with the regulatory authority. We, Sai Kalyan Builders and Developers have already registered with Regulatory Authority and our ULTIMA Project RERA number is PR/KN/170808/001218. Also, the law ensures that developers post all the information of the project such as project plan, land title status, layout, sub contractors and completion date at the time of registration so that this information will be easily accessed by the customers.
- A buyer’s security will be enhanced by RERA since the developers cannot demand for more than 10% of the property cost to be paid as advance booking confirmation before signing registered sales agreement.
- Currently, the realty market is crowded with many unorganized developers who use low quality construction materials which results in deficiency in the projects within few years of acquiring. We can see that only few professional builders such as Sai Kalyan Builders and Developers who use quality products to ensure the longevity of the building but with RERA is being implemented, if any deficiency in the project has been noticed by the buyer within one year of taking, he/she can demand for after sales service.
- Developers often tend to make changes to the original plan without the consent of the buyer and sell it at an increased cost. This popular practice prevailing now has put the buyers in an increased pressure to arrange for the extra finances. But with RERA in practice, there will be an end to this practice.
It is expected that RERA might pressurize the builders to complete the project on time so developers might resort to latest building practices such as Aluminium formwork technology and automation to avoid project delays. To conclude, RERA will not affect the professional developers who are already building quality projects and delivering it on time but the unorganized builders may start winding up or look for joint ventures to sustain their place in realty segment. Experts also point out that the success of this key reform measure will depend on how well it is implemented by the government.
We, Sai Kalyan Builders and Developers is one of the leading real estate builders building many successful projects with 100% vastu in North Bengaluru. Our recent project, Sai Kalyan Ultima Smart Homes built on latest Aluminium formwork technology have completed its 1st phase successfully with 100% occupancy. We have now commenced the 2nd phase and the bookings are happening pretty fast.
Interested in buying a home in ULTIMA? Please visit http://www.saikalyanbuilders.com/ to know more details about the project.
For Flats between 51 to 60 lakhs: http://www.saikalyanbuilders.com/flats-for-sale-in-Bangalore-within-60-Lakhs
For Flats between 60 to 70 lakhs: http://www.saikalyanbuilders.com/flats-in-Bangalore-betwen-60-to-70-Lakhs