HYDERABAD: The Real Estate (Regulation and Development) Act, 2016 enacted by Parliament seeks to protect home-buyers against developers’ and property brokers’ misdeeds. It is essential for the home buyers to verify that their builder and broker both are registered with Real Estate Regulatory Authority (RERA).
“We have heard of home buyers complain about builders promising a house of certain specifications and finally delivering another one or of brokers misrepresenting facts in terms of property specifications or price. These complaints will now become a thing of past, once RERA comes into force effectively across all states. If a builder or broker fails to deliver what they promised before closing the transaction, the home buyers will have a legal recourse under RERA. While most of the home buyers are aware of what RERA offers them in terms of builders, many are unaware that brokers too come under the purview of RERA,” said Gummi Ram Reddy, a senior representative of CREDAI.
It has been more than a year since RERA Act came into force and most of the states have started implementing the landmark Act which is expected to bring in discipline in the sector and eliminate unscrupulous players. While states like Maharashtra and Karnataka already have a fully functional RERA, states like Telangana are yet to start implementation on a full scale.
RERA Act is mostly uniform across India, with some minor changes being done to suit each state’s specific requirements. The home buyers can check with the local RERA authorities if their broker is registered under body or check the state’s RERA website.
“Mere regulation is not enough; home buyers need to be made aware of the provision. Many home buyers do not know that even property brokers need to be registered with RERA. If they transact through a RERA registered broker, then they will have a legal option to pursue or complain and protect their interest. Broker ecosystem is highly unorganised and unprofessional. The Act will help home buyers if they ensure that the builder and the broker are both registered under RERA,” suggested K Sreedhar Reddy, Treasurer, Telangana Real Estate Developers Association (TREDA).