Since its enactment, RERA has brought significant changes and addressed several longstanding issues that plagued the industry. Let's delve deeper into what is RERA registration, its impact and seven major issues it is yet to address. But before that lets go through a quick overview about RERA.
RERA, short for the Real Estate (Regulation and Development) Act, 2016, is a landmark legislation passed by the Indian Parliament to regulate the real estate sector. It seeks to establish a regulatory authority in each state and union territory to oversee real estate transactions and ensure timely completion of projects while safeguarding the interests of consumers.
Under RERA, registration process ensures that all projects meet specified standards of construction quality and timelines. RERA approved projects provides buyers with confidence and assurance.
Plots that are part of RERA-approved projects adhere to the same regulations regarding transparency, timelines, and quality standards as residential or commercial buildings.
Despite its positive impact, RERA faces challenges such as inconsistent implementation across states, delayed project registrations, and ambiguities in certain provisions. Addressing these issues is crucial for RERA to effectively fulfill its mandate of protecting home buyers and promoting fair practices in the real estate sector. The table below outlines current challenges and suggests probable solutions that RERA can provide
| Issues to be Addressed by RERA | Potential Resolutions |
|---|---|
| Delayed Approvals | Streamline approval processes, set clear timelines, enforce penalties for delays. |
| Inconsistent Guidelines | Provide clearer and detailed guidelines, update regularly with stakeholder input. |
| Complex Compliance Requirements | Simplify procedures, offer guidance through workshops and online resources. |
| Escrow Account Challenges | Ensure transparent fund management, provide clear guidelines on usage. |
| Inconsistent State Implementation | Standardize enforcement across states, conduct regular audits for compliance. |
| Lack of Dispute Resolution Mechanisms | Establish efficient dispute resolution mechanisms within RERA authorities. |
| Burden of Multiple Registrations | Implement unified processes for property registrations. |
Online registration under RERA can become cumbersome in states with multiple governing authorities. Builders often find themselves having to register the same project on different websites, which not only consumes time but also introduces the risk of inconsistencies between registrations.
While RERA focuses on ensuring timely project delivery, delays in obtaining necessary clearances and approvals remain a persistent issue. These challenges can significantly prolong the commencement of projects. These delays not only impact project timelines but also contribute to increased costs and uncertainty for home buyers.
Home buyers often face a dilemma between approaching consumer forums or RERA for grievance redressal. Clarity on the jurisdiction ensures swift and fair resolution of disputes, thereby enhancing consumer confidence in the regulatory framework.
The prioritization of new project launches over completing existing developments can exacerbate uncertainties and trust issues among buyers. Such delays highlight the need for stricter enforcement of RERA guidelines to ensure developers allocate resources efficiently and prioritize the timely completion of ongoing projects, thereby safeguarding the interests of home buyers.
Lack of precise definitions about carpet area, balcony spaces, etc., often leads to confusion and differing interpretations during property transactions. Clearer guidelines and stricter enforcement are crucial to ensure developers adhere to specified standards, providing clarity and confidence to prospective buyers about the actual living space they are investing in.
Uncertainty surrounds the resale of properties in RERA-regulated projects, particularly concerning transfer fees, resale procedures, and developer involvement. Standardized procedures and transparent regulations can mitigate uncertainties and ensure fair practices in property resale transactions.
Despite the establishment of regulatory authorities and appellate tribunals under RERA, concerns persist regarding the efficiency of dispute resolution mechanisms. Enhancing the speed and effectiveness of dispute resolution processes is crucial to instilling confidence in RERA as a robust regulatory framework.
Looking forward, RERA is set to assume an even more critical role in shaping India's real estate sector. As more states refine their procedures and enforce stricter adherence to regulations, the industry is poised to experience enhanced investor trust and sustainable expansion. RERA represents a significant stride in reforming the real estate landscape in India. It is imperative for RERA to effectively tackle its pressing issues to instill confidence among both developers and home buyers, ensuring a robust and transparent market environment.
