RERA-Compliant And Proud To Be So!
Long gone are the days when jittery developers wondered how the reformative real estate law would impact them. Many predicted most would die an untimely death as soon as the stringent norms of the pro-buyer legislation comes into effect — the Real Estate (Regulation & Development) Act, 2016, came into effect on June 1, 2016; states have been since busy formulating their own versions and setting up their respective Real Estate Regulatory Authority. Several of those developers who knew they were here to stay did sweat blood and have been able to successfully registering their ongoing real estate projects with authorities concerned. Such developers are now flaunting their RERA registration numbers when they pitch their projects in the market in order to attract buyers who have been distraught because of the trust defect in the sector. At a time when a free holiday to an exotic location, free membership to premium clubs, free parking spaces, free gold coins and all other things free did not move such passive consumers, developers are betting on their RERA registration number to work its magic.
“We have become fully compliant with all the new RERA rules and regulations. Compliance with RERA is an opportunity to revive buyers' confidence and we want to capitalise on the opportunity,” Supertech chairman R K Arora told media recently.
"I expect to see a positive impact of RERA on the sector, which will be now regulated and operated in a professional manner. From the perspective of home buyers, it will enhance confidence in real estate developers, provide a stronger legal remedy and will result in many fence sitters making a buy decision," Hiranandani Group co-founder & chairman Niranjan Hiranandani told Forbes India.
States such as Maharashtra have made it mandatory for developers to provide their RERA registration numbers in their advertisements. Developers, it would seem, would have complied with this directive without anyone telling them so.
Now, how should you take it as a buyer?
First things first, under no circumstances should you invest in an under-construction project that is not registered with the RERA. This does act as a guarantee that in case of an issue with the developer, there is a one-stop shop that would address your concerns. However, the law is no panacea, and caution must be exercised to make sure things work favourably for you. To do so, you must keep in mind that:
*States have formulated laws which are different from the Central Act. In some cases, Central provisions have been diluted to make the law more builder-friendly. If you developer is operating in such states, you need to be careful. Also note that only 18 states and seven union territories (UTs) have notified the law so far. Ten states have yet to notify the law.
*A RERA registration number is all very good, but you should still hire a competent lawyer to carry out the purchase process. He would be in a better position to understand the law.