The realty sector of India has long been one of the most unorganized sectors in India. The developers and real estate agents for so long have managed to manipulate the modest buyers by forming a vicious circle. The lack of any legality and proper system has further encouraged the promoters and agents to practice corrupt activities.
There often have been instances wherein, real estate agents sold the same project to more than one client and fled away with the money. The buyer in this aggrieved situation has often been helpless since there was no one to complaint to. Buyers further have to give in to the terms and conditions, though buyer is said to be the king of the market. Delayed possession is another common problem in the real estate sector. Developers often invest the money of sale proceeds of one project into the other project. This delays the completion of the ongoing project and ultimately leads to the delayed possession.
A relief has come to the buyers with the approval of real estate regulatory bill 2016. Under the RERA For Buyers 2016 Act, each state and union territory will have to form a regulatory body. This regulatory body will be made up of Members of authority and a chairperson.
All the developers and real estate agents will now have to get registered under RERA India. This will help buyers differentiate under compliant and non-compliant, builders and agents. Further a developer is required to maintain an escrow account which contains 70% sale proceeds of the ongoing project. A developer cannot now advertise or launch the project without getting the project registered under RERA.
To change the layout plan of any project, the promoter will have to seek consent from two third of buyers. RERA with proper rules and regulations is expected to bring transparency in this long messed up sector.
