Home buyers' sentiments upbeat as RERA comes into force from May 1

Real Estate (Regulation & Development) Act (RERA) will be implemented on May 1, 2017 and the homebuyers across the country are waiting eagerly for it. Implementation of RERA is likely to bring in transparency and reinforce consumer's trust in the sector. It seems like an act that will safeguard the interest of the homebuyer along with timely and quality construction. The real estate developers are also buckling up to follow the rules and regulations of the RERA Act and working towards project completion certificate.

One of the most prominent feature of RERA is that it makes mandatory for a state to establish a State Real Estate Regulator Authority which will govern both residential and commercial real estate transactions, thus improving the governance hold on the real estate sector, reducing disputes and making the system more transparent.

RERA's rule of depositing around seventy percent of funds in a dedicated account will ensure sufficient funds for the projects to speed up, get completed and timely delivery to buyers. RERA Act will try to protect the interest of consumers ensuring speedy redressal of disputes which will help gain confidence amongst the buyers. It will also ensure that the home buyers are adequately protected and that promoters and developers abide by the rules and regulations.

RERA as a policy measure has the potential to revive the sector. Another good sign for the sector and the homebuyers is that as the deadline for RERA approaches, developers are trying to focus on completing their existing projects rather than launching new ones.

With RERA, there would be mandatory disclosure of project details, including those of the promoter, project, land status and clearances. This would increase the credibility of developers and would protect consumer rights as well. Home buyers confidence will boost as a result of these measures undertaken by the government.