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5 Commandments That Are Helping the Commercial Real Estate Industry in India

 

5 Commandments That Are Helping the Commercial Real Estate Industry in India

For an entity to work properly and in a disciplined manner, it is must to have a governing body. The absence of a lawful supervisory body (like SEBI for the capital markets) in the real estate industry was long felt. This privation was fulfilled when RERA (Real Estate Regulatory Authority) came into existence in many states and Union Territories. Its functions take in –protection of stakeholder’s interests, amassing information at an assigned repository and making a powerful system for complaint redressals. To counteract time lags, the regulatory body has been ordered to resolve applications within 60 days (maximum period); there might be an extension to this time period but there has to be a recorded reason for the deferral. 


Here in this article, we will be discussing 5 laws imposed by RERA that will help and increase buyer’s confidence in shops in Noida industry –

1)  Compulsory registration – In accordance with the central law, every single real estate project with the total area exceeding 500 sq. meters or project with more than 8 units must be registered with the RERA for their state. Existing commercial or residential projects where the occupancy certificate (OC) or the competition certificate (CC)has not been dispensed, are required to meet the terms under the RERA act. For the application of registration, the developers have to provide detailed information, which include – details of the developer, land status, schedule of completion, approvals, etc. After completing these formalities, the developer’s project be marked authentic for development.

2)  Reserve account – Buyers investing in shops, office spaces, flats, etc. are most affected by the delays in real estate projects and one of the chief reasons for these delays was that most developers used to divert the funds collected for the construction of one project to fund new and other multiple projects. To counteract such a diversion, developers have to park 70% of the project money into a separate reserve account. The amount in this reserve account can only be used on the project land and its construction costs and all this has to be certified by an industry professional.
3)  Persistent disclosures by developers – After the implementation of RERA, investors will be able to proctor the project progress. All the project retailed updates will be available on the RERA website, as the developer has to periodically update the same.
4)   Representation of the Title – Now, the developers have to make a positive guarantee on his authentic title and land interest, the same can be used against him if the investor or RERA finds any discrepancy in the title. Furthermore, they are required to acquire insurance for the title and project construction, income of which will go directly to the beneficiary upon the execution of sale agreement.
5)  Standardization of the sale agreement – RERA endorses a standard model sale agreement between the developers and the property buyers. Earlier, developers used to add castigatory clauses against the property buyers, which reprimand the buyer for any default while in the same situation there were no harsh steps against the developer. With RERA, such clauses are things of the past and property buyers can rest assured, as now the standard sale agreement is more balanced.
Besides the above-mentioned laws, RERA has strict eye on violators and for them both monetary penalties as high as 10% of the project cost and even imprisonment have been prescribed.
So, if you have any plans to invest in shops in Noida, don’t hesitate. With RERA and reputed developers by your side it’s the right time to put your money on commercial properties. But if you are still hesitant yet want to invest in commercial properties in Noida, we have a perfect project for you - Anthurium – a business park located at the prime location of sector – 73, Noida - is not only offering its buyers with spacious, efficient and green office spaces but the spaces that are well equipped with current technologies like Artificial intelligence, level 5 automation, fourth generation of fire detection and mitigation system. The property is a great investment for business spaces and retail shops. So, if you are looking for a commercial office space that has world class interiors to help your business achieve efficiency and productivity, its time you buy commercial property in Noida at Anthurium.
 
Read More:-
 
Investing in Anthurium Noida’s Commercial Office Spaces - Four Tips for Success
 
Never Compromise on Location When in Search of Commercial Office Space in Noida 
 
 
Avoid Blunders While Investing In Commercial Property 
 
Points To Ponder Before Investing in Executive Office Space 
 
Using Competitions to Drive Sales in Your Retail Space 
 
 
 
 
 
 
 
 
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