- Transparency and Accountability
- RERA mandates that all project details, including timelines, layout plans, and the status of statutory approvals, be prominently displayed on the RERA website. This transparency ensures that buyers have a clear understanding of what they are purchasing, preventing developers from making arbitrary changes without notification. In the Mumbai real estate market, this requirement significantly enhances trust between developers and buyers, fostering a more reliable and accountable environment for property transactions.
- Timely Project Completion
- One of the most common challenges faced by homebuyers was delays in project delivery, leaving many stressed as their funds were tied up while they awaited their homes. The implementation of RERA addressed this issue by imposing penalties on developers for projects not completed within the specified timelines. Additionally, developers are required to deposit 70 percent of project funds into a dedicated escrow account, ensuring that the money is used exclusively for the project's completion. These measures have significantly reduced project delays and instilled greater confidence among homebuyers regarding the timely delivery of their homes.
- Standardized Sales Agreements
- RERA requires standardized agreements that clearly define the rights and responsibilities of both builders and buyers. Before this, many agreements were one-sided and favored builders, leaving buyers at a disadvantage. Now, these balanced contracts help reduce conflicts and disputes, creating a fairer relationship and fostering trust in the real estate market.
- Grievance Redressal
- RERA has created a strong grievance redressal system by establishing a Real Estate Regulatory Authority and a Real Estate Appellate Tribunal in each state. These bodies are tasked with addressing complaints and disputes quickly and efficiently. Buyers are now empowered to approach these authorities with issues related to project delays, construction quality, and changes in project plans, ensuring that their concerns are heard and resolved effectively.
- Investor Confidence
- RERA’s regulation and implementation have significantly boosted investor confidence in India’s real estate sector. By ensuring that projects are completed and delivered on time, RERA protects investors and homebuyers from being misled. This trust has attracted both national and international investors, contributing to the sector's stability and growth. As a result, the real estate market is becoming increasingly robust and appealing for investment.
RERA has greatly impacted the property market and boosted real estate investment in India. By ensuring projects are completed on time, standardizing agreements, and offering a strong complaint system, RERA encourages ethical practices among developers. This has made the real estate sector more transparent and efficient, leading to increased growth and attracting more investors.