Real Estate Regulatory Authority (RERA) was established to provide transparency and accountability in the real estate sector. The regulatory body ensures that developers comply with the set guidelines and protect the interests of homebuyers. However, several RERA issues are plaguing homebuyers today. In this blog, we will discuss some of the RERA issues that homebuyers face.
- Delayed Projects
One of the primary RERA issues that homebuyers face is the delay in project completion. Developers often face financial constraints or bureaucratic delays, resulting in delayed project completion. While RERA guidelines mandate that developers provide a realistic timeline for project completion, there is no strict penalty for not meeting the deadline. In such cases, homebuyers are left stranded with no recourse but to wait for the project to be completed.
- Lack of Communication
Another RERA issue that homebuyers face is the lack of communication from developers. Developers often do not communicate with homebuyers on the status of the project. While RERA mandates that developers provide updates on the project status every three months, developers often fail to do so. This lack of communication leads to anxiety and stress among homebuyers, who are left in the dark about the status of their investment.
- False Promises
Developers often make false promises to homebuyers regarding project completion and amenities. Homebuyers are lured by attractive brochures and advertisements, promising world-class amenities and timely project completion. However, once the project is launched, the developers fail to deliver on their promises. Homebuyers are left with a half-finished project which does not meet their expectations.
- Incomplete Amenities
Developers often fail to provide the promised amenities in the project. Homebuyers invest in a project based on the amenities promised by the developer. However, once the project is completed, developers often fail to provide the promised amenities. This leaves homebuyers feeling cheated and disappointed.
- Misuse of Funds
Developers often misuse the funds collected from homebuyers for other projects. RERA mandates that developers create a separate bank account for each project and use the funds collected only for that project. However, developers often use the funds for other projects, leading to a shortage of funds for the project for which the funds were collected. This leads to project delays and dissatisfaction among homebuyers.
- No Standardization of Agreements
There is no standardisation of agreements between developers and homebuyers. Developers often include clauses that are not in the interest of homebuyers. Homebuyers are often not aware of the legal jargon used in the agreement, and developers take advantage of this. There is a need for standardisation of agreements to ensure transparency and accountability.
- Lack of Enforcement of RERA Guidelines
RERA guidelines are not enforced strictly, leading to developers flouting the rules with impunity. There is a lack of political will to enforce the guidelines, and developers often use their political connections to evade punishment. This lack of enforcement of guidelines leads to a sense of helplessness among homebuyers.
Conclusion
The RERA issues plaguing homebuyers need to be addressed urgently. There is a need for stricter penalties for delayed projects and misuse of funds. Developers should be mandated to communicate regularly with homebuyers, and there should be standardisation of agreements to ensure transparency and accountability. RERA guidelines should be enforced strictly, and there should be no room for developers to flout the rules with impunity. Only then can homebuyers be assured of a stress-free and transparent real estate sector.
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