Benefits of Real Estate Regulation Act (RERA) for Non-Resident Indian (NRI): NRI Legal Services
“Under the NRI legal services the real estate laws or the property related queries find a special place. There have been cases/events wherein the NRI has entered into a wrong transaction as he/she did not avail a proper online legal consultation from a reputed real estate attorney or lawyer handling property cases and thus leading to a financial loss. There have been numerous cases where the property gets struck in litigation or the possession is not delivered and the buyer has to suffer the losses. Further, for want of knowledge of the real estate laws of India or the property laws of India there always exists a chance of deficient paperwork and legal documentation.”
Real Estate (Regulation and Development) Act, 2016 (hereinafter referred as “RERA Act”) came into force in the year 2017. Before the enforcement of this Act, the buyers and especially NRI property buyers were always at high risk and prone to fraud. There was no speedy remedy available in case of fraud and cheating. This Act came as safeguard for the interest of all the buyers and made the whole process of investment into real estate transparent.
NRI Property Buyers are investing more in real estate in India due to provision of this Act only. It has benefitted NRI buyers a lot in following ways:
1. Accountability- All the real estate developers registered under RERA are to complete the project within the stated time limited without any repercussions. So, now the buyers have no burden to push the developers again and again for timely completion of the project.
2. Ensures Delivery of Possession on Time- Because of the RERA, the NRI buyers doesn’t have to worry about the late delivery of property. It assures the buyers delivery of possession on time.
And in case the buyer doesn’t get the property delivered on time, the remedies are there too in RERA. As we know a real estate project can take some years to be completed. So, a normal delay can be accepted but if there is extra ordinary delay, then it became the issue of concern and for that Section 18 of RERA Act provides remedy under which interest for delay would be provided, developer will be liable to pay the interest amount every month till the time the possession is not handed over to the buyer.
3. Increased Faith- on the Official website of each state RERA, there is abundance of accurate information available regarding the property or projects. There the buyer also can check the current status of any project and this information can be easily accessed anywhere. The builders under RERA are required to upload status of projects and all the progression. So, it has increased faith in NRI to invest in real estate in India without any fear of getting into ay fraud.
4. Secure Investment- RERA has made it compulsory for builders to keep 70 % of the payment by buyers in different account, this is to ensure safe investment by NRIs. This deposited fund will be looked after by the state regulatory authority.
5. Transparency- As mentioned earlier, the official website of State RERA contains all the information regarding registration of project, ownership, status etc. of the project. The government has tried to make the process as transparent as it can be. Easy access is given to all buyers, agents and builders. The developers are required to give all the details like sanctioned plans, development plans and layout plans and all this help the buyer and make the process absolutely transparent.
6. Carpet Area- To facilitate the NRI buyers, the RERA has provision under which the Carpet area of the property need to be disclosed. So, that the NRI doesn’t even has to visit the property. The concept of super built-up area was not that good as buyer expected more area and then resulted in getting smaller one. But the carpet area is perfect and gave the clear idea to buyers about the property.
7. State- Wise Distribution- Because RERA is applicable all over the country, there are state regulatory authorities and the buyer can just go to state regulatory authority where the project is located and get all the required details from there. Tax rate also differs from state to state and depending upon area. So, the buyer doesn’t have to pay high tax rate on less developed area.
8. Regulatory Body- Earlier there were not proper laws governing the real estate sector but after RERA, the real estate sector of India has organized and flourishing. It has regulatory bodies. In case of any grievances the NRI can approach them. The process is simplified now and law governing are properly implemented.
All these factors have helped the NRI property buyers a lot. Resultant in more investment in real estate sector in India by NRIs before RERA.
Therefore, before buying any real estate or property in India the NRI should always obtain a proper legal consultation from the best real estate attorney or a property lawyer and should always avoid in investing in disputed properties or struck properties in India.
If a NRI property buyer is worried about fraud and cheating, then he/she shouldn’t worry at all as the RERA Act has bring transparency and dispute solving mechanism. There are tax exemptions also provided to NRIs and the real estate sector has already observed good response from the buyers.
Authored By: Adv. Anant Sharma & Anjali Swami