THE REAL ESTATE (REGULATION AND DEVELOPMENT) BILL, 2016 – A BOON IN THE LONG RUN
The Real Estate (Regulation and Development) Bill was passed by the Government early in March this year bringing in cheer for homebuyers. As per the provision of the bill the Real Estate Regulatory Authority (RERA) will play a critical role in regulation and promotion of the real estate sector.
The bill mainly focuses on protection of the interest of consumers in the real estate sector. It aims to bring in more transparency in the transactions related to residential and commercial projects and ensuring their timely completion and handover. This includes sale of plot, apartment of building or sale of real estate project. It also intends to address and establish an arbitrating mechanism for speedy dispute redressal and to establish the Appellate Tribunal to hear appeals in related matters.
One of the important aspects of RERA is that it would ensure that developers deliver to their customers what they have promised at the time of signing the sale deed. This includes possession date, layout, amenities, fittings, facilities and specifications. Also the rates would be quoted on carpet area. This will completely safeguard buyer’s interest.
All projects will have to be registered with the regulators and all relevant details pertaining to the project would need to be provided like project layout, land status, approval status etc. thus bringing in complete disclosure so the buyer can make an informed decision.
There are many more aspects to this bill that will help bring in accountability and reduce uncertainty of customers. They shall stop being victims and it shall promote a healthy environment, making the home buying process very smooth and effective.
”Mr. Pradeep Runwal, M.D. Runwal Reallty observes, “While the bill brings in relief to home-buyers it will also help builders to benefit from the transparency to generate improved institutional fund flow." It will bring in more credibility to the real estate sector. Faster permissions and processes is what the developers will look forward to make this a viable proposition. Their challenge would be to manage liquidity in the short term. As with every change initially it will take some time to overcome the hiccups while implementing the bill. But in the long run it will contribute positively towards overall betterment of the Real Estate Sector.