RERA: Bringing Transparency In The Real Estate Industry
- 15 April 2019
Formulated to protect the rights and interests of homebuyers, the Real Estate Regulation and Development Act (RERA), 2016, has been in effect in India for the last couple of years. Every state in the country has its own variant of RERA, catering more specifically to the realty market of the region. Since the time the Act has been implemented, there has been a noticeable increase in the transparency, efficiency, and accountability of the real estate sector in India, which was until then a largely unregulated space.
Here are some ways in which RERA is set to bring in transparency in real estate in India:
Ensuring quality construction:
One of the most important ways in which RERA ensures transparency in the sector is through its emphasis on quality construction. Builders are required to register their projects under RERA, which mandates them to meet the prescribed standards for quality construction. Moreover, builders are required to be transparent about the entire process—from construction materials used to the technology employed. RERA has also imposed on builders a defect liability period of five years, assuring homebuyers of transparent and quality construction.
Retaining only trustworthy developers:
Another important way in which RERA has turned the realty market into a transparent space is by regulating the processes of participant builders. RERA mandates builders to register their projects under the Act, and to make publicly available the RERA registration number of each project. This ensures that the unreliable developers are ousted from the market, and only those who guarantee quality construction, timely completion or compensation against delay, and prompt grievance redressal, are sustained in the market. Here are the primary mandates to builders:
- A project cannot be announced, advertised or launched by a builder, until and unless it has been registered under RERA.
- The project plan, details of layout, land title status, government approvals and subcontractors, must be shared with the allottees/investors.
- Timely construction is emphasized, and compensation against a delay is ensured.
- Even in the case of minor addition/alteration to the property, builders are required to inform the homebuyer.
- For larger additions or alterations, the builder must have the consent of at least two-thirds of the allottees/investors.
- To transfer the majority rights of a project to a third party, the builder must have the consent of at least two-thirds of the allottees/investors.
- Formation of RWA (Residents’ Welfare Association) is mandated by the Act.
Emphasis on carpet area:
The realty term ‘carpet area’ had long been an unregulated one, which is why builders misused it rampantly to aggrandize the worth of their projects. RERA has brought in a great level of transparency by strictly defining this term and by enforcing builders to cite only the carpet area of a housing unit when advertising it. Carpet area has now been redefined as ‘the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.
All the projects of Mahindra Lifespaces are constructed in strict adherence of the RERA standards. There are an array of homes available at Mahindra World City to choose from that fits one’s budget and some of them come with great payment plans as well. Aqualily by Mahindra Lifespaces in Chengalpattu is one such project with ready-to-move-in apartments which has been built with utmost transparency and with optimum quality. Moreover, you get up to 9 Lac worth interiors in your new home at Aqualily. So, if you are looking to invest in ready-to-occupy flats and villas in Chennai, Aqualily by Mahindra Lifespaces would be a trustworthy choice.