Undeniably the implementation of The Real Estate (Regulation and Development) Act, 2016 (RERA) is backing the real estate sector towards achieving a better accountability. Pre-RERA real estate sector used to be the most unruly sector with the poorest transparency level between the buyer and the seller. Non-residential Indians wanting to invest in Indian property market can now avail better transparency level along with standardized practice method. This is how implementation of RERA brings benefit for NRI property investors-
1. Accountability on real estate developers- Real estate developers has to comply with RERA norms for their business continuity. Thus, it’s obligatory for the developers to register their on-going projects with the state regulatory authority (RA) and to secure a timely deliverance along with a proper quality check. Now buyers shouldn’t be worried about project completion.
2. Timely update- Builders are now time-bound in terms of project deliverance. Alongside they need to update a quarterly progress report on the development on the state RERA website.
3. Secure investment- RERA mandates builders to maintain an escrow account with 70% of the received amount from the buyers. This amount can only be used for existing development work.
4. Better transparency- RERA is a big relief for the NRIs as there is significant transparency between the developer and the buyer. Now with the presence of the RERA website NRIs can access any data about the developer and their project works from anywhere. They will get to watch the project status on the site at any time.
5. State-wise distribution- Since real estate is a state subject, thus RERA is spread separately in states. NRIs can track all the project development works according to their area preferences. Interested NRIs can check for the details of the projects on state RERA websites.
6. Builders liable for interests- In case of possession delay, the builder is liable to pay interest on the value of the project to the NRI buyer until the delivery. Thus, NRIs don’t need to follow up builders regularly. Any delay will result in compensation which will benefit them anyway.
7. Simplified process-Under RERA real estate transaction and follow up have become less complicated than earlier which is a bigger benefit for the NRIs to understand the entire transaction process. Now they have a legal platform to raise their voice and file complaint against any deceptive act of the builders. RERA will monitor every realty transaction so that it can protect the consumer rights at its best.
8. Presence of a regulatory body- Now a regulatory body can be easily accessed to get exact information about construction works or the developers. Before RERA buyers used to move consumer courts for reporting fraudulent cases. Now buyers can easily approach the state RERA authority on account of any misleading approaches by the realty stakeholders.
“Real estate sector in India has been evolving into a secured and intelligent investment venture for the NRIs. NRI buyers can now actually monitor the development progress of their invested projects and use the legal platform in case of any default whenever needed. With increased security level of investment, enforcement of RERA broadens the scope of realty investment in India,”- said Mr. Mahesh Somani, Chairman- National RERA Committee, Head- East Zone, National Association of Realtors India (NAR).
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