The Real Estate Regulation and Development Act (popularly known as the RERA Act) is slightly changing the way Arun Dev Builders is working. This change is quite good as now there are a set of rules that govern the real estate sectors. The absence of regulations had made it difficult for whitehat real estate developers like Arun Dev Builders to practice their profession ethically. For years, irregular operations within the sector had also pushed small realty companies by the dozen to start projects that have a shaky foundation (pun intended). These companies often dupe customers by making faux promises and not delivering the agreed product. RERA Act is slowly making amends to these problems one step at a time.
Perhaps the best improvement made by the RERA Act is the penalty imposed on late deliveries. A real estate developer that delays the transfer of a home to a customer will have to pay an interest of 10.9%. An apartments cost will now be calculated based on the measurement of the carpet area, instead of the built-up area. Home buyers are often cheated with the end product. Now, changing building plans mid-way will incur a heavy penalty.
According to experts from Arun Dev Builders, real estate developers will have to furnish their details on the RERA website for full transparency. It will also aid in organizing the realty sector. Builders will have to provide details on the cases on trial against them, their company profile, financial status, loans, and customer reviews. Customers are free to browse these details before they choose to buy a property from a developer.
Arun Dev Builders has definitely felt the shift in the paradigm. The smaller real estate con-companies are slowly disappearing or are reinventing themselves to stay in the race. Arun Dev Builders, on the other hand, did not experience a huge impact as it already played by the book.