Homebuyers have often fell victims of real estate transactions from events like having delays in service delivery to not getting exactly what they have signed for and more. The recently approved Real Estate Regulation Bill in India is going to provide home buyers the protection they need, which will consequently benefit the whole sector as consumer confidence returns. So how is the RERA going to benefit home buyers?
According to The Economic Times, the new law will help ease the uncertainties home buyers experience in terms of their finances when they purchase a property. For instance, any delay in the promised turnover of the property would bring setbacks to the buyer's financial situation. With the new rule, home buyers are protected from delays that do not provide any compensation.
Buyers are also sheltered from deceptive promises, incomplete services and overcharges, The Economic Times noted, as the RERA will now held real estate agents accountable for any shortage or omission in the services promised.
Meanwhile, Livemint said that the Real Estate (Regulation & Development) Bill 2016 will make the playing field balanced for both the developers and the home buyers, whereas in the past it was much more in favor of the former. Livemint cited the instance of delays in payments of the consumer where the consumer is required to pay as much as 18 percent. But when the delay was on the side of the developers, their compensation is much lower. With the recently passed law, both parties are going to pay the same interest rates for their respective delays.
On a larger scale, Livemint said that the RERA will make the property more transparent, accountable and efficient, and the process of home buying much easier. Having a regulator now will eliminate malpractices and market movements such as home price increases will be more rationalized.