The Impact and Effectiveness of RERA on Customer Protection in Real Estate Transactions

Real estate transactions can be complex and risky, but the implementation of the Real Estate Regulatory Authority (RERA) has aimed to provide a more transparent and customer-protected environment. By offering consumers the Right to Information as outlined in Section 113 of the RERA Act, customers now have more access to clear and accurate information regarding real estate projects. This article will explore the efficacy of RERA in different states, the challenges it faces, and the overall benefits it brings to real estate customers.

Effectiveness of RERA Across States

Since the implementation of RERA, the number of complaints has significantly increased. However, the effectiveness of the authority differs from state to state. For instance, as of May 6, 2020, MahaRERA in Maharashtra had disposed of over 71% of the total complaints received. In Karnataka, out of 4076 complaints registered, 1993 had been disposed of, leaving 1808 still under process. In Gujarat, RERA has resolved 1855 complaints.

Although RERA has been notified in most states, the rate of its implementation varies. While it has good effectiveness, the pace of action can be slow in some regions. This highlights that the degree of implementation plays a crucial role in determining the effectiveness of the RERA system.

RERA: A Double-Edged Sword for Home Buyers

RERA is a double-edged sword. It can significantly protect home buyers, but its effectiveness is hindered by various challenges. Even with RERA in place, numerous projects operate without required approvals, and people continue to purchase them for various reasons. The lack of a genuine approach from government agencies to stop unauthorized constructions and layouts exacerbates the issue.

Home buyers, driven by greed, often still purchase unapproved projects, and banks continue to provide housing loans even for such buildings and plots. Furthermore, home buyers have the audacity to bribe bank authorities to get loans sanctioned. These practices undermine the intended protection offered by RERA and highlight the need for stricter enforcement and greater transparency.

Boosting Customer Confidence

The implementation of RERA has significantly increased customer confidence in entering into real estate transactions and dealings of new projects. With the assurance of a regulator in place, buyers can now be more assured that their rights and interests are protected. This newfound confidence has led to a more robust and reliable real estate market, where transparency and accountability are paramount.

It is essential for all stakeholders, including home buyers, government agencies, and banks, to work together to ensure the effective implementation of RERA. Only then can the full potential of this legislation be realized, ensuring a safer and more transparent real estate environment for all participants.

In conclusion, while RERA has made significant strides in enhancing customer protection, there is still a long way to go. By addressing the challenges and promoting transparency, we can further strengthen the RERA's impact on real estate transactions.