what is RERA and how it will impact on the real estate industry and home buyers?

what is RERA and how it will impact on the real estate industry and home buyers? post thumbnail

Why we go for a real estate project registered with RERA?

The Real Estate (Regulation and Development) Act of 2016, intends to ensure the interest of home buyers.

While every one its arrangements became effective , from May 1, 2017, Developers had been given until the end of July 2017 to register their Venture under Maha RERA. Post registration, citizens will be able to view, on Maha RERA  site, all disclosures pertaining to registered Venture. This shall enable data driven informed decision making.

How will RERA impact home buyers?

Registration with RERA will be mandatory before beginning the sales and marketing of any Venture. Increased assertion on the timely completion of  venture and delivery to the consumer.

An increase in the quality of Development due to a defect liability period of five years.

Home buyers will have more insight into the venture that they are considering to associate with us.

The most positive aspect of this Act is that it provides a unified legal regime for the purchase of plots

Impact of RERA on real estate industry

One of RERA’s important regulations is that all proposed projects exceeding an area of 500 square metres. – It is required for  mandatory for the builders to deposit 70% of the venture money collected from homebuyers like you in bank accounts through
cheques. This means builders can no longer in money laundering or in fraudulent transactions. From now on every rupee gained and every rupee spent has to be accounted for. – Builders have to update the status of their Venture development
at every stage on the RERA website. This allows homebuyers to keep track of the progress of the Venture. – There will be one model sale agreement between all  homebuyers and  builders to prevent from  fraudulent or harmful terms.

·       Initial backlog

·       Increased project cost

·       Tight liquidity

·       Rise in cost of capital

·       Consolidation

Which projects come under RERA?

Commercial and residential projects including plotted development Venture measuring more than 500 sq mts or 8 units Venture  without Building Completion Certificate or Occupation Certificate (OC), before commencement of the Act The venture which only for the purpose of repair/ redevelopment / renovation / which do not involve re-allotment and advertising, selling ,marketing or new allotment of any apartments, building or plots  in that , will not come under RERA

How can a builder be RERA COMPLIANT?

·       Project registration

·       Promotion

·       Withdrawal – POC  Technique

·       Website updation/ disclosures

·       venture accounts – audit and 

70% of the assets collected from allottes needs to be deposited in the Venture account. Withdrawals cover construction and land cost.Withdrawals to be in proportion to the % of completion method.Withdrawal to be certified by an CA, Engineer and architect.Provision for RERA to freeze Venture bank accounts upon non-compliance.Interest on delay will be same for promoter  and customer

Market situation after one year of RERA

There have been fewer Venture launches and the focus has been on execution of on-going projects

Developers have to adhere to compliances, or to face strict penalties

All stakeholders can have single point access to all important information about a registered project on MAHA RERA website.

Hence, we can say that RERA is a step towards transforming the real-estate in India encouraging greater transparency, citizen centricity, accountability and financial discipline.





8 thoughts on “Why should we use home loans to buy our home?”

  1. Avatar Rosario says:

    If you’re considering taking up the profession of the management
    of projects there are things you should know. The term “project manager” is used to describe a professional within the field of
    administration for projects. Project managers usually are
    accountable for the planning, execution and procurement of a project,
    irrespective of industry; however they are more powerful and have an elevated profile than other
    team members.

  2. Avatar Janvi says:

    Thank you for posting this helpful blog on Real Estate.

  3. Avatar rani says:

    I think that is one of the such a lot vital info for me. And i’m happy reading your article. However should observation on some general things, The web site taste is perfect, the articles is really excellent : D. Excellent process, cheers

  4. Avatar RajaShekar says:

    Thank you for sharing valuable information

  5. Avatar swapna says:

    your blog is very informative and thanks for suggutions for flate

  6. Avatar Rajesh kumar says:

    Thanks for sharing.Your information is clear with very good content.This was the exact information i was looking for.keep updating more.

  7. Thank you so much for the amazing blog, I would definitely like to leave a comment here for the amazing content that you guys shared on this blog.

  8. Pretty section of content. I just stumbled upon your website and in accession capital to
    assert that I get in fact enjoyed account your blog posts.

    Any way I’ll be subscribing to your feeds and even I achievement you access consistently quickly.

Leave a Reply

Your email address will not be published.

Open chat
Thank you for showing interest in MyRon Homes - Prince of Real Estate, Hyderabad. Please choose your preferred property location near Tellapur, Patancheru, Kompally, Shamirpet, Shankarpally, Chevella, and Choutuppal-NH65.