by Pooja Bhatia,
The RERA Act is perhaps the best thing to have happened to lift the confidence of buyers in the real estate community. Many of us do not exactly share the same level of trust with the real estate builders, agents or developers for that matter. Our confidence has been further shaken after legal hurdles and property seizing by the court continues to put our complete investment at real stake. Earlier, it was a delay in the possessions and now, it is sheer lack of evidence in land ownership which has upset our sentiment to invest in new homes.
This is the reason why RERA must have happened. It is an Act to protect the home buyers and bring in the transparency bond in the real estate world. The Act was officially implemented on May 01, 2017.
However, as expected, there are some teething problems to administer property sales through the Act. The RERA work is getting stuck from where the big mess originates. Many states are reported to be miles away from its implementation as they do not have the infrastructure support or the resources to make RERA a fixed reality. Media reports suggest that most of the builders and property agents are still struggling to understand the impact or the deeper meaning of having a regulatory framework like RERA. It seems they are ill-prepared or not being assisted properly. At least, some of them acknowledge the fact that they are in early stages of preparation to comply with the Act. The suspense is, however, building on the returns and the investment.
Till date, there are 13 states and Union territories which have notified the new rules. Out of which, Maharashtra, Madhya Pradesh and Rajasthan have so far appointed a housing regulator. To add, only Maharashtra state board has gone ahead to launch a website with a purpose to collaborate developers and brokers to register and apply for new projects identified as per RERA.
A web-based system under RERA is of paramount importance. It is a proof of the customers understanding of the regulatory framework. Through the web-based system, the buyers will be able to make informed decisions before buying a property.
The fact that most of the states do not have a RERA working website is alarming. If the buyers have no platform to apply or the state have no RERA registration number to share, then, how will the properties sell anymore. The business cannot happen without a certified RERA registered number anymore.
Therefore, the ultimatum is urgent. Developers and brokers must get things in order. The first step towards it will be to sensitize themselves on RERA information, understand the process of application and the exact requirement under the new Act. Another important point is to start coordinating with vendors regarding the implementation of RERA.
However, may brokers have expressed their reservations clearly implying that they have no idea on how to register themselves with the RERA authorities. At present, it seems like a staring roadblock since agents cannot sell any property, not even an under-construction property till they are qualified RERA members. To add, the buyers need to be aware of this fact, since all property registrations during the period will be invalid.
As per the central Act, all developers should have received a completion certificate from the RERA authorities before July 31. But, there some loopholes in this section too. As per a media report, Uttar Pradesh and Rajasthan have not made it mandatory for registering ongoing projects which are under the caretaker of local authorities of RWAs, or where the lease deeds of 60% of the apartments or plots have been done, or where the developer has already submitted the completion certification. Likewise, Maharashtra has directed the developer to register only a ‘phase of the project’ which is yet to get the copy of completion certificate.
What Are the Real-time Consequences of the RERA Delay?
It is a pressing problem since any delay in registration will only impact the buyer sentiment in a negative way. There are inordinate delays in under-construction projects and it is bad news for the whole sector since investment will only be further delayed.
Pooja Bhatia is a property news enthusiast, who likes staying updated on business and corporate news, lifestyle at home, home interior elements, location insights and rest of the information, to make living better. She is also an avid traveller (a blogger on holidays) and an avid reader and a part of this real-time information, she converts into real estate enthusiasm.