According study of FICCI Grant on new real estate law Real estate Regulation Act 2016, RERA, there will be transparency in real estate transactions, reducing the number of litigations in the sector.
The new Real estate bill RERA has been passed by Rajya Sabha. The RERA bill, 2016 seeks to protect the interests of aspiring house buyers. The bill further looks at enhancing the credibility of construction industry by promoting transparency, accountability and efficiency in the execution of projects. As the bill further makes strides towards becoming a law.
Respondents of the survey of RERA 2016 felt that the new act will improve the hold of governance on the sector which will push more foreign domestic investments into the sector in the short term.
According to the report –
• There will be improvement in the ease of availability of financing options in the market.
• With the rule of depositing 70% of sales proceeds, there will help in timely delivery of the project.
• This will also eliminate fly-by-night operators in the real estate.
• This will bring in stabilization in prices.
• This immunize buyers from any fraudulent practices.
Over 65% of the respondents in the report feel transparency will increase in real estate dealings going forward. Around 60% think RERA will increase governance hold on the sector, lead to increased investments. Approximately 50% of the respondents hope lending options from lenders will improve and availing finance will be easier.
The report recommends that complying with this act should not become another layer of approval and rather eases the entire approval process for builders.
From the developer side, the report said that if they comply by the provisions of RERA after they get used to its provisions and complexity of its rules, it could push prices upwards in the short-term.
Suggested reads: RERA Act 2017: 7 Effects Real Estate Buyers Should Know About