RERA to safeguard Indian home buyers from unscrupulous developers

With investor confidence returning, resulting in greater institutional capital inflows in the long term, the segment is expected to be in revival mode, which led to Realtors & Estate Consultants Association (RECA) -- in association with MACJ – A Buyers Choice Home Inspections -- to organise a seminar on the implementation of this Act, and discuss its implications on the real estate agents and the overall benefits of professional home inspection services.

The seminar comes in the backdrop of West Bengal preparing for increased regulatory vigilance under RERA, the organisers said.

RERA became effective on May 1, 2017 in India with each state and Union Territory to have its own Regulatory Authority (RA) who will frame regulations and rules according to the Act.

Home inspection in America is a multi-billion dollar industry, and over 80 per cent of the homes sold / bought are inspected before the transaction, said the organisers. It is now an industry that is also catching on in India.

“Most realtors in the USA advise their customers on getting their home inspected and as per research, realtors have mostly not had any sellers’ deal terminated as a result of a home inspection. The implementation of RERA will further boost the development of the home inspection services industry in India, and will develop into an organised industry bringing together stakeholders, developers, real estate agents, and home buyers onto a common platform,” said Mahendra Sureka (Founder-CEO, MACJ – A Buyers Choice Home Inspections, India).

MACJ, India, in 2016, had collaborated with a leading US MNC called A Buyer's Choice Home Inspections (ABCHI) to start professional home inspection services in India.

Heera Lal Bagra, a city-based realtor and past President, National Association of Realtors - India, said that in more developed markets, realtors need to register and be certified, to facilitate a real estate transaction.

“Home inspection can be used as a important tool for future planning. It’s the best way to avoid buyer’s remorse," he said.

Speaking at the occasion, Kolkata-based developer, Dileep Singh Mehta (Chairman, Multicon Group) said, “Home Inspection Services as a pre-delivery mechanism will act as an important security layer for the consumers as also provide real time report to the Real Estate Developers for ensuring quality control on the work done by appointed contractors/workmen, thus eliminating consumer disputes to a great extent."

"It will also act as a cushion of comfort to the Home Loan providers, particularly in regard to the asset quality. So what we have conceived as a health check of buildings on a macro front two decades ago is now translating itself into a micro level activity for the benefit of the consumers at just the right time when Housing Industry Regulatory Authority (HIRA) is scheduled to kick off shortly," he said.

Several states and Union Territories have so far notified the rules, said Sureka.

"In West Bengal, Draft Rules have been made and the West Bengal Housing Industry Regulation Bill 2017 was passed by the state assembly, on August 16, 2017. We expect the housing department to work towards enforcing the Act soon to address the concerns of real estate industry stakeholders. By this year, it's expected to be enacted here in West Bengal," he said.

Anup Dalmia, President, RECA, said, “The seminar will go a long way in creating awareness, the agents will have a much larger and responsible role to perform and it will bring in professionalism in the sector.”

Ajit Kr Jain, city-based interior designer / architect, said that home inspections are already being carried out for customers.

"Home inspection services are very vital for those taking homes outside their home states. Such certification instills confidence in buyer’s minds," he said.

Kamal Prakash of Jiwanram Sheoduttrai Groups said, “Since all consumer items are subjected to pre testing before being sold to end users, so why not our homes be pre inspected which is possibly our costliest and once in a lifetime investment.”

MACJ India is co-promoted by Mahendra Sureka and Arvind Kumar Bhotica along with investor industrialist, Ravindra Chamaria, Infinity Group.

MACJ-ABCHI has started operations in Kolkata, Mumbai and Pune and is in the process of opening offices in Chennai and Delhi through the franchise model route.