The basic need of RERA is for monitoring the different statutory approval processes. There are 189 registered countries in this context and India ranks in the lowest of the groups with a rank of 181 for getting the permits of construction.
The Real Estate Act, 2016 for the regulation and development is known as RERA. It was implemented for the revival of the confidence of buyers and provides a provisional caution to the developers. Though the act has been implemented, it is not yet used fully in most states of India and some have not yet appointed full time regulators. Maharashtra has however been able to effectively implement RERA and is now an example which the other states should follow.
There have been a lot of advantages that been gained by implementing RERA. For example, the transparency has increased a lot along with the credibility. This has resulted in increasing number of domestic and foreign investments. The investors find the Indian Real Estate market as a place for getting a good return and hence are not reluctant to invest a hefty sum. This has also resulted in the improvement of organization and quality as a whole. The implementation of RERA has made one thing clear that those who are not organized enough will struggle and without being a developer with credibility to see through their business with proper transparency, it will be tough to survive in the future market. Obviously, for a buyer it is one of the best possible measures taken. This is because the quality has surely risen.
Since the RERA has been implemented, the risks for the buyers of the homes have been subsequently less. Under the compliance of RERA, a developer needs to give an affidavit to the buyer which is written according to the statement of the legal titles that are connected to the ownership of lands and formulate a right over the land in future in a legal and legitimate manner. This secures the title insurance. The title insurance being a type of indemnity insurance, it acts against the losses incurred, mainly financial, in the claims of Real Estate properties. There are a lot of different types of insurances available that provides protection against any kind of mishap in future. The title insurance however, provides the necessary cover for the events that has occurred in the past due to disputes.
The main aim of title insurance is to renew confidence among buyers, and one can say it has worked efficiently enough. As a result, the Real Estate market has improved. This in turn has motivated the investors as well.
Somehow, the implementation of RERA has also caused a decrease in pace of the new launches, the quality has surely increased as people are bound to create their products to be more thoughtful and productive. As a result, builders who have quite a good reputation about their products and services are facing no problems in finding suitable buyers. For them, RERA is nothing but paperwork at present which they have to do routinely. The implementation of RERA has also raised the demand of having a single window disbursal that is going to regulate all types of approvals. This will be sure to benefit the Real Estate Sector. At present, only state agencies have the authority to grant approvals to the builders at any required stage in the development of the project.
Conclusion Even after its implement, the statistics show that India has a very low ranking when it comes to granting of Construction permits. Therefore, there are certain shortcomings that the government and the Real Estate sectors have to overcome together. Therefore, RERA is a work in progress at present.