For too long there have been demands for greater transparency and accountability in the area of real estate transactions. Laws were too ambiguous, recourse methodologies were opaque, home buyers were not organized and the legal process was overloaded. It was to address these pressing issues that the Real Estate Regulation & Development Act (RERA) was passed by the cabinet in May 2016. However, real estate being a state subject, the implementation has to be done separately by each state and the state government also has the powers to make necessary amendments to the law if required.
The RERA will be implemented in Maharashtra effective April 01st 2017 and it will be among the first states in India to do so. It is also important because Mumbai is the biggest real estate market in India, both for residential and commercial properties. Hence implementation of the RERA in Maharashtra assumes added significance. So, what exactly will be the Implications of the implementation of RERA on the real estate market?
The RERA will make the real estate market more transparent in 10 unique ways:
With Maharashtra implementing the RERA effective April 01st 2017, it is a matter of time before other states join. In the process, not only will customer interests will be protected but builders will also benefit from greater transparency. In fact, regulation has always helped a market to develop more significantly as we have seen in the case of capital markets. For the real estate market that is plagued by overcapacity, this will surely be a blessing in disguise!
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