The Real Estate Regulatory Authority has completed two years of complete implementation. It has created a significant impact on the market and changed the way it operates in more ways than one.
Transforming an industry that was run on laws of a wasteland, RERA has brought transparency and order to one of the largest employing industries in the country. It has brought a welcome change for all the stakeholders of this market.
Here’s a look at what RERA has been able to achieve for real estate in India in the last two years.
Separate account for real estate projects
Real estate developers are required to open a separate account under RERA norms for each project. This account should be opened in a scheduled bank and requires holding at least 70% of the money received by builder for the project.
The funds can only be used to finance the project in question. This presents a kind of transparency in the industry hitherto unheard of.
Creating an umbrella for the industry
Before, the real estate legislation throughout the country was incoherent to say the least. Today, the implementation of an umbrella law like RERA that builds a bridge between the Union and State governments has given 19 states their own RERA portal.
It has also brought an organized framework for the industry. Today, real estate agents can become government recognized under RERA.
Protecting home buyers
RERA has done a lot for home buyers throughout the country. Including them in the creditors committee and arming them with the power to invoke insolvency against a builder has made the market a lot more secure today.
From EMI penalties in case of property handover delays to allowing only registered real estate projects to advertised, it has completely changed the image of the industry.
Improved India’s Business Index for Real Estate
India has moved up some major points from ranking 182nd on the World Bank’s Business Ease index to climbing its way to 52nd for the real estate sector. With a single window for registration and permissions along with RERA website domains, life in real estate has become significantly easier.
The impact of RERA will bring further change in the industry as more states take the initiative to move under this massive Real Estate umbrella. As for now, it continues to legitimize an industry that has been shunned into corruption and fraud for decades on end.
To know more about RERA compliance for your projects and better sales, visit Loyalie now.