Rera: The Impact on Builder Dealers & Consumers
RERA is a regulatory body which is made to regulate the real estate space. It keeps the customers’ interest paramount and makes sure there is ease of flow of information.Developers must deliver what is promised, this is the key to RERA. In the real estate space, there are various factors beyond the control of the developer. RERA mentions that the developer should not over commit and deliver as promised, but there are times wherein regulations change or material gets obsolete, due to which changes are necessary and are in the interest of the customer. By including red tape, the delivery process has been elongated for developers. As it is a capital intensive industry, developers will face increased cost escalations which they would keep to be compensated for. Although RERA is good for the over all industry, it will make business very difficult in the space, thus impacting the largest employer of the country.RERA will surely create some turbulence in the industry which is not used to any body regulating it. the over all supply will drastically fall as projects without the RERA registration number will not be able to advertise and sell in the market. the over all compliance costs for the developers will increase, thus creating a upward pressure on prices. this will lead to consolidation in the industry and will improve the over all unsold inventory in the market. It is yet to be understood how quickly the RERA rules can be implemented by developers due to complex structures of operations. RERA will in the Long Run Help Improve Customer Confidence. However, It Will be At a Cost Which will Have to be Borne By the Customer.
Developers Will Find It Challenging to Comply With the Rules, as Some Of The Rules Are
Still Not Crystal Clear. Due to Multiple Projects
and Various Different Micro Markets, Developers Will Find IT Challenging to Comply With All the Rules Of RERA. How ever, Considering RERA is the Need Of The Hour And Will Only Increase the Customer Confidence, Various Developers Are Working to Comply Before the Deadline. There Are Some Very Stringent Rules Such As the Interest Will be the Same If Developer Fails To Deliver And If the Customer Fails to Pay On Time. This Doesn't Allowt The Developer to Force the Customer to Pay On Time, Which Might Adversely Impact the Delivery Of The Flat. There Are Cases Where in Customers Create Litigation Against the Developer. In that Case, the Developer Has the Most to Lose As Interest Income Will Not Suffice the Cost Of Delayed Possession.
Even Property Brokerage Houses Come Under the Ambit Of RERA, Meaning That Agents Or Agencies Operating In Smaller Pockets Who Did Not Hesitate to Foist Inferior Or Flawed Properties Onto Their Clients Will Be Wiped Out. No Longer Will Buyers Who Used the Services Of Such Brokers In the Past Risk Winding Up With Properties Whose Defects Become Evident Only After the Deal Is Done.
RERA Renders Brokers And Agents Punishable If They Do Not Comply And Abide With the Regulator's Strictures Ruling. Previously, Smaller Brokers Had An Unrestricted Play On the Indian Residential Real Estate Market place, And Many Of them Thrived On Misinforming Or Under Informing Their Customers. With RERA, Home Buyers Who Use the Services Of Real Estate Agents And Agencies Will Be Protected And Have Access to Quick Legal Redressal In Case Of Faulty Business Practices. In Fact, Brokers Who Made The Market Place.
Another Rule Which Adversely Impacts the Developer is the Liquidity Crunch Created, As 70 Percent Of the Proceeds Need to be Kept In A Separate Account And the Developer Can Only Do Payments After Having Certificates From Architect Or CA. This Will Unnecessarily Increase The Time Taken To Process Payments Which Will Impact Developers. A Minimum Amount Should Have Been Exempt From Certificates So that the Process Could have been Faster.
Under RERA, Agents And Agencies Will Have to Ensure that they are Duly Registered With the Regulator. by Registering Themselves, They Effectively Declare Themselves Completely Accountable For their Business Activities And Practices.
and Various Different Micro Markets, Developers Will Find IT Challenging to Comply With All the Rules Of RERA. How ever, Considering RERA is the Need Of The Hour And Will Only Increase the Customer Confidence, Various Developers Are Working to Comply Before the Deadline. There Are Some Very Stringent Rules Such As the Interest Will be the Same If Developer Fails To Deliver And If the Customer Fails to Pay On Time. This Doesn't Allowt The Developer to Force the Customer to Pay On Time, Which Might Adversely Impact the Delivery Of The Flat. There Are Cases Where in Customers Create Litigation Against the Developer. In that Case, the Developer Has the Most to Lose As Interest Income Will Not Suffice the Cost Of Delayed Possession.
With RERA, home buyers who use the services of real estate agents and agencies will be protected and have access to quick legal redressal in case of faulty business practices
Even Property Brokerage Houses Come Under the Ambit Of RERA, Meaning That Agents Or Agencies Operating In Smaller Pockets Who Did Not Hesitate to Foist Inferior Or Flawed Properties Onto Their Clients Will Be Wiped Out. No Longer Will Buyers Who Used the Services Of Such Brokers In the Past Risk Winding Up With Properties Whose Defects Become Evident Only After the Deal Is Done.
RERA Renders Brokers And Agents Punishable If They Do Not Comply And Abide With the Regulator's Strictures Ruling. Previously, Smaller Brokers Had An Unrestricted Play On the Indian Residential Real Estate Market place, And Many Of them Thrived On Misinforming Or Under Informing Their Customers. With RERA, Home Buyers Who Use the Services Of Real Estate Agents And Agencies Will Be Protected And Have Access to Quick Legal Redressal In Case Of Faulty Business Practices. In Fact, Brokers Who Made The Market Place.
Another Rule Which Adversely Impacts the Developer is the Liquidity Crunch Created, As 70 Percent Of the Proceeds Need to be Kept In A Separate Account And the Developer Can Only Do Payments After Having Certificates From Architect Or CA. This Will Unnecessarily Increase The Time Taken To Process Payments Which Will Impact Developers. A Minimum Amount Should Have Been Exempt From Certificates So that the Process Could have been Faster.
Under RERA, Agents And Agencies Will Have to Ensure that they are Duly Registered With the Regulator. by Registering Themselves, They Effectively Declare Themselves Completely Accountable For their Business Activities And Practices.
