Introduction
The Real Estate (Regulation and Development) Act, 2016 (RERA) stands as a significant law that has brought substantial changes to the Indian real estate field. Its primary goal is safeguarding homebuyers’ interests and promoting openness and responsibility in the real estate industry.
Gurugram is a crucial real estate market in India, witnessing significant growth recently with various new projects taking shape. The influence of RERA on Gurugram’s real estate market has been quite remarkable.
Impact of RERA on Gurugram Real Estate
Here are the main ways in which RERA has impacted the Gurugram real estate scene:
- Enhanced Transparency: RERA has made it mandatory for all real estate projects to register with state regulatory bodies. This shift has led to improved transparency since homebuyers can now access details about the project, such as the builder’s information, project plans, and completion timeline.
- Strengthened Accountability: Builders are now required by RERA to establish a dedicated account for each project. This account can only be used for that specific project’s construction and not for any other purpose. This change has increased accountability among builders, ensuring the funds collected from homebuyers are used solely for the intended project.
- Quicker Dispute Resolution: RERA has established a system for fast-track resolution of conflicts between homebuyers and builders. This has significantly reduced the number of unresolved cases, providing relief to homebuyers who were facing project-related issues.
- Heightened Investment: The introduction of RERA has created a more favorable environment for investing in real estate. The act has boosted investor confidence by offering a legal framework that safeguards their interests.
Key Responsibilities of Real Estate Agents/Brokers under RERA
- Mandatory Registration: All real estate agents or brokers operating within a state must undergo registration with the respective Real Estate Regulatory Authority (RERA).
- Transparent Information Sharing: Real estate agents or brokers hold the duty to transparently share all pertinent details about a property with the buyer. This encompasses comprehensive information like the builder’s identity, project blueprints, and the anticipated completion schedule.
- Elimination of Upfront Fees: Under RERA’s guidelines, real estate agents or brokers are prohibited from charging upfront fees from the buyer, contributing to a more equitable transaction process.
- Truthful Representation: Real estate agents or brokers are bound to truthfulness and accuracy in their interactions with buyers. Misleading or false statements about the property are strictly forbidden.
- Fair Trade Practices: Upholding the principles of fair trade, real estate agents or brokers are barred from engaging in unfair practices, including demanding commissions exceeding the agreed-upon terms.
- Compliance with RERA Directives: Real estate agents or brokers are mandated to adhere to the directives issued by the RERA, which may encompass furnishing information or submitting required documents to the regulatory body.
In the event of any violation of these responsibilities, real estate agents or brokers are subject to penalties imposed by the RERA. These penalties may encompass fines, registration suspension, and in severe cases, even imprisonment.
Conclusion
The impact of RERA on the Gurugram real estate market has been undeniably positive. The act has bolstered transparency, accountability, and investor trust in the sector. As a result, there has been a surge in new projects launching within the city, making Gurugram an even more appealing destination for real estate investment.