Infrastructure Posted on May 3, 2017 by Arun Kumar GS123 Q. What positive changes does the RERA aim to bring about in the real estate business? Judge its negative impacts also. 5 marks Tags: GS paper 2infrastructureRERA Arun Kumar M.Sc.(Psy), UGC( NET), R&T Exp: 20+ Yrs, Founder -Beautiful Mind , Delhi Next Psychology CSE’16 : Model Answer Previous International Relations You may also like... Critically evaluate the cognitive approach to the study of psychological phenomena. 10 marks. CSE 2013 CSE 2017: Psychology paper 2 Protected: Problem solving strategy 2 Responses Comments2 Pingbacks0 Alice says: June 9, 2017 at 6:44 pm The RERA seeks to protect home buyer as well as help boost investments in the real estate industry. Positive changes 1. As it makes mandatory for all commercial real estate projects where the land is over 500 square meters to register with RERA, it provides greater transparency in project making. 2. It provides protection to the buyers as it says builders will have to fix prices based on carpet area not super built up area. Moreover it provides that 70% of money has to be exclusively reserved for the given project by the builder. 3. It ensures timely completion of projects as it helps establish stale level RERA too. 4. It would make brokers more professional as they can neither add nor subjugate any services to the documents submitted. 5. Customers with the given assurance would be more confident to invest in real estate business. This would add up to the sector Negative side 1. It would generate lots of confusion for on going projects. Moreover it would further delay such projects. 2. It would negetatively affect small builders as they won’t have extra money to invest in other projects if they are forced to fridge 70% of the money they get from the particular project. 3. This would decrease the competition in the market. Consequently prices for consumers are bound to increase. Reply Poorva Singh says: June 9, 2017 at 7:14 pm The Real Estate Regulatory Authority(RERA) aims at protecting the rights of consumers and tries to bring transparency. Some of the positive impacts of RERA are : 1. Builders often do not complete their work on the scheduled time. After this bill, strict regulations will be enforced on builders to ensure that construction completes on time and flats are given on time to the buyers. If the builder is not able to complete the work on time, he/she will have to refund the purchaser with interest. 2. At the time of construction, builders show their projects with various amenities and facilities but after completion of the project, several features are missing. According to the bill, there cannot be any changes to a plan and if a builder is found guilty of this, he/she will be penalized 10% of the project’s cost or will be imprisoned for 3 years. 3. Generally, builders sell flats on the basis of built in area which includes a common passage area, stairs and other spaces which are 20-30% more than the actual flat’s area. But, not all buyers are aware of the concept of carpet area. With this bill, it will become compulsory to declare the actual carpet area. 4. Builders try to attract buyers with huge discount. And the buyers get attracted by the offers and do not bother about the clearances. But due to delays in getting clearance, the buyers do not get flat on time. This bill ensures that buiders get all the cleaeances before selling flats. Some of the negative impacts of RERA are: 1. Only new projects are covered by the bill. Projects that are ongoing, completed or stuck due to clearance or financial issues, do not come under this. Hence, many buyers will not be benefitted by it. 2. Sometimes, it takes a lot of time to clear a project. It is up to government bodies to follow a strict time frames to approve the projects so that builders can complete and deliver them on time. 3. There is no compulsory regulation for projects less than 1000 square meter, so small builders will not be bound to register. 4. As a project will not be allowed to launch without the clearances from the government, projects will automatically get delayed. Reply Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website This site uses Akismet to reduce spam. Learn how your comment data is processed.