Pune

Maharashtra has become the first state in the country to be 100 percent RERA-ready.

The centre has notified May 1 2017 as the date when the Real Estate Regulation & Development Act (RERA), 2016 will come into force. The state governments were given time till April 30 to set up the real estate regulatory authority, tribunal and draft rules and regulations to operationalise RERA. Consequently, Maharashtra will see the effect of RERA immediately in the coming few weeks and months. Let's see how RERA will transform the industry and bring tremendous value for all stakeholders.

Homebuyers

Transparency of information: All information about the project such as sanctioned plans, approvals, layouts, standard formats of legal agreements, amenities et al will be available for public viewing.

Developer profile: The background of a developer and details of projects launched by him/her in the last five years will be available, which will empower a buyer to select the right developer.

Carpet area: All marketing material, customer agreements et al will now mention the carpet area of the apartment which RERA defines as the 'Net usable area excluding area of balcony, verandah, terrace but including area under internal walls'. This will make it easier for buyers to compare products across projects.

Dedicated forum for complaints: Homebuyers will have an option of filing complaints against developers and real estate agents in the Consumer Court or RERA Authority. RERA Authority has to give orders within a specified time or record reasons in writing for delay in giving the order.

Control over project cash flows: Developers will now deposit 70 percent of collection from customers into a separate account, which will be used for payments towards land and construction cost. This will ensure that there is always enough funding available for completion of the project.

Assurance of possession: Customers will be get better assurance of delivery as entitled to compensation in case the project gets delayed beyond the possession date declared at the time of registration.

Quarterly updates: Promoters will post quarterly updates of progress of projects on the website for public viewing which will give the homebuyers a clear idea of the progress of the project.

Developers

Industry status: Real estate finally gets recognition as an industry, as there will be a comprehensive law that will bring uniformity in the sector across India.

Faster sales cycle: Buyers will have information across projects and will be able to take buying decisions faster.

Financial and management discipline: Progress of every project registered under RERA will be monitored by a chartered accountant, an engineer and an architect. Promoters will be able to maintain stronger control over the project cash flows, completion deadlines and work schedules.

Domestic and international funding: Developers will be able to access better quality and cheaper funding as investors like to deploy funds in sectors with high levels of transparency and control.

Real estate agents Organised status: Registration under RERA with give a different level of status and branding to the real estate agents, as their details will be available on the official web page of the project on the Authority website.

Registration: Homebuyers will have the confidence that promoters can sell their units only through real estate agents registered with the Authority.

Training and updation: Both promoters and agents will focus on training and updation about various aspects of a project and keep them updated from time to time since there are penalties for mis-selling.