What are the RERA Benefits for NRI Buyers?
After the enforcement of the Real Estate Regulation Act (RERA) 2016, the Government has opened the doors for more NRI (Non Resident Indian) investment in the Real Estate Industry. Earlier, the Non Resident Indians use to think twice prior to investing in the Indian Real Estate Sector due to various reasons and dilemmas. But, today, RERA has turned out as a reason behind the increase in NRIs Investment in the country’s real estate sector. In this blog, we will discuss the concept and RERA benefits for NRI buyers.
Concept of RERA Registration
The term Online RERA Registration denotes a process in which a promoter/developer and agent obtain registration under the provisions of the Real Estate Regulation Act 2016. Further, the key objectives of this registration are as follows:
- To Infuse Reliance and Confidence among all the Stakeholders;
- To Bring the Sense of Comprehensibility. Accountability, and Responsibility in the Sector;
- To Ensure Speedy Grievance Redressal;
- To Minimize the Occasions of Frauds, Scams and Malpractices by Increasing Compliances;
- To Confirm Fair-play and Timely Possession;
- To Establish Professional Standards in the Real Estate Sector;
- To Impose Penalties for Defaults and Delayed Possessions;
- To Promote the Practice of Good Governance;
Growth of Real Estate Sector in NRI Investments
According to the news published by the Financial Express on 16.03.2020, the total NRI Investments in the Indian Real Estate Sector will cross the US $13.1 billion in the Financial Year 2021 – 2020.
RERA Benefits for NRI Buyers
The various available RERA benefits for NRI buyers are as follows:
On Time Possession
The implementation of RERA Act has encouraged many NRIs (Non Resident Indians) to own property here as now these people need not to run behind the builders and developers to get the timely possession of their property or home.
Further, the Real Estate Developers and Builders are totally liable for finishing a project without any repercussions and delay. Therefore, the buyers need to worry less about their investments and on time completion by the builder.
Increased Level of Trust and Faith
Nowadays, all the information concerning the property, status, and ownership are available online, which thereby increases the faith and trust of NRI (Non Resident Indian) buyers in the Indian Real Estate Sector.
Also, it is obligatory for every builder or developer to timely update their website with the information concerning the project’s current status. However, in the case of default, the builder will be liable for the penalty.
According to the provisions of the RERA Act 2016, it is mandatory for every builder to deposit 70% of the total funds received in a separate Escrow Account administered by RERA. The same will be used for future constructions.
Therefore, the main aim behind the implementation of RERA is to ensure the safety of the buyer’s investment.
After the implementation of RERA, there has been a significant infusion of transparency in the real estate sector. As now builder or developer needs to disclose every material concerning the project to the buyer.
Moreover, in the case of NRIs, one can gather or extract information concerning status or developments made from anywhere around the world.
Total Carpet Area
After the implementation of the provisions of RERA 2013, it is mandatory for every builder and developer to provide information concerning carpet area, as it will make easier for NRIs to judge and decide about investing in a property without actually visiting it.
Further, the reason behind the disclosure of carpet area is that the super built-up area, which was in use prior to the existence of RERA 2016, included unnecessary components, which resulted in buyers acquiring a smaller area than they expected.
However, with the use of “Carpet Area”, the buyers and investors will get a clear image of the property that, too, just from the brochure.
State Wise Distribution
As the provisions of RERA 2016 are enforceable on all over India, it makes it easy and simple for NRIs to get knowledge about the various project developments based on the preferred places.
Also, the Interested NRIs can now check for the information and details of the projects on the official website of the Authority of the respective state.
Interest for Delay Possession
One of the main RERA benefits for NRI buyer is that in the case of any future delay, the builder will be solely responsible for paying the due interest till the time of delivery.
Also, the NRIs do not get the chance to follow up with the builders on a regular basis, so now any type of delay will result in interest and compensation which will ultimately benefit them in every way.
After the implementation of RERA, now builders are accountable towards the buyers in the case of delay, fraud, and mis-representation. Further, the term accountable means the responsibility of the builder or developer to compensate the buyer in the case of default.
Regular Updates on Construction
All the information concerning construction will be timely updated by the developers so that NRIs can easily access the same from anywhere. Also, the builders need to upload the timely project status as it progresses in future.
Simplified Investment Process
Another significant RERA benefits for NRI buyers is that the implementation of the RERA 2016 has made the follow ups and investments less complicated and tricky, which is particularly a bigger benefit for Non Indian Residents (NRIs).
Administration by Regulatory Authority
The existence of RERA Authorities in every state has made it simple and easy for NRIs to extract and gather information anytime and from any corner of the world.
Further, prior to the implementation of RERA 2016, buyers used to have no clue about how to report and file fraudulent cases and whom to reach out to complain about the cases. However, now NRIs can easily file complaints regarding any project of in state regardless of their own location.
In a nutshell, after the implementation of the RERA Act 2016, discipline in Real Estate Sector, index of good governance, and faith in the investments made have gone up day-by-day. As a result, the home buyers now feel contented and satisfied at the time of handing over their hard earned money to developers and builder because they know that now there is someone who looks after for their interest.