RERA (Real Estate Regulation Act) upon its implementation in India has affected people in both sides of the spectrum, the buyers and the sellers. It is quickly being implemented in all the states over time until it comes into effect everywhere in India. This has raised praises as well as concerns and frustrations among some estimated 500000 to 900000 promoters and real estate agents of India.
Under Section 2 of the RERA, anyone who involves in the sale and purchase of any real estate projects will be called as a Real Estate Agent (REA). This covers both individuals as well as all agencies. All must register themselves under this act according to their States before conducting any sort of business or it might be deemed illegitimate.
All the promoters are to update specifics of their projects to the RERA website while filing their applications since it has been made mandatory. RERA’s aim is to increase transparency in the workings of real estate, regulate it and ensure fair play between promoters and the allottees, provide quick resolutions of disputes if any arises. Promoters can only advertise their projects after their registration under Section 3(1) of the Act. Also under Section 4 they are supposed to maintain different accounts for different projects while using the buyers or the allottess money for construction purposes.
The Problems with RERA
RERA approved promoters are rising in public demand. Many promoters are trying to register themselves as RERA Complaint according to their respective states. A number of promoters have complained that RERA and its forced accountability has given them extra problems to deal with. Many say that most states are not even ready to bring this compliance into effect with their limited infrastructure and resources. According to the agents after the shock of demonetization, RERA is another blow for them. As a result of RERA, most small time agents and referrers might fail to comply due to costs and legalities and will be forced out of business.
What can You Do as a Real Estate Agent or Promoter
In spite of the gray areas surrounding the regulation, one cannot simply ignore the positives. A RERA registered promoter will always be ahead of their competitions as they will instill more trust among the buyers who claim to have undergone bad experiences in their buying process and also investors. Only serious players and promoters committed to their businesses will remain as most petty brokers and agents will be filtered out.
As a promoter, one can always stay ahead and beat the competition during these tough times by using RERA compliant services. Loyalie is one such platform that makes real estate referrals and schemes an easy process again for the promoters as it is not only RERA compliant but also has been approved by CREDAI. Promoters can run their referral offers legally through this digital platform. Click here to request a quick demo and to know how your real estate and referral business can be eased with it.