Will RERA Compliance bring sales boost to stale Real Estate Economy?
Is RERA Compliance is capable to boost sales in the real estate economy; the answer is a YES and NO. RERA information is not filled up truthfully and quarterly updates filled up by many builders is not accurate. This may lead to distrust and ineffective RERA mandate. This article will through light on the goods of RERA with respect to Homebuyers and the current state of affairs that will slowly move the situation towards a dismal state.
Let’s first take the case of “YES”
YES- RERA will boost Sales and Economy of real estate’. Ideally, RERA means 100% Transparency of Information. Builders who follow and provide accurate data to the RERA website, abide by the given guidelines like the stated below are doing good in business.
- All information about the project such as sanctioned plans, approvals, layouts, standard formats of legal agreements, amenities, etc. will be available for public viewing.
- Developer Profile: The background of the Developer and details of projects launched by him in the last five years will be available which will empower the Buyer to select the right developer.
- Carpet Area: All marketing material, customer agreements, etc. will now mention the carpet area of the apartment which RERA defines the Net Usable Area excluding the area of the balcony, verandah, terrace but including area under internal walls. This will make it easier for buyers to compare products across projects.
- Dedicated forum for complaints: Home Buyers will have an option of filing complaints against developers and real estate agents in the Consumer Court or RERA Authority. RERA Authority has to give orders within a specified time or record reasons in writing for delay in giving the order.
- Control over project cash flows: Developers will now deposit 70% of collection from customers into a separate account which will be used for payments towards land and construction cost. This will ensure that there is always enough funding available for completion of the project.
- Assurance of Possession: Customers will get a better assurance of delivery is entitled to compensation in case the project gets delayed beyond the possession date declared at the time of registration
- Quarterly updates: Promoters will post quarterly updates of the progress of projects on the website for public viewing which will give the Home Buyers a clear idea of the progress of the project.
The second case of “NO”
The second case of ‘NO is true when violation and inaccuracy of the above-mentioned data take place. And when quarterly updates are misleading and incomplete people lose trust. This situation is followed by distrust in RERA, the builder and the project. Data on RERA websites is not user-friendly to consume. This condition also will lead to a lack of interest in investment.
Another platform that tries to bridge information gap is Umber Ghar, RERA Compliance Software You can see the latest project updates, the projected speed, details of every building progress, progress of amenities, sold and unsold status of every asset/unit type and much more. Comparison of various projects with respect to RERA is also very easy. The public can visit this site to seek data of builders from Pune, Mumbai and its suburbs.
In conclusion, RERA compliances have not substantially improved business and economy. Hear the people at loss are the builders and home buyers both. Builders are not getting adequate traction because of lost faith. Homebuyers are not interested because there is no assurance or transparency from Builders and the authority. Several efforts are in place to move the situation toward a favorable state.