Grading mechanism in Real Estate @Torbit Realty

The recent announcement by the Maharashtra RERA Association to institute a grading mechanism for the real estate projects and developers has evinced a keen interest among various stakeholders including home buyers , developers , financial institutions, marketing and branding professionals, besides industry bodies. @MahaRERA has already set the ball rolling by inviting suggestions?from the stakeholders for formulating a framework for grading projects. It is pertinent to mention that in 2020, UP RERA had also formulated a grading mechanism which is however yet to be implemented.?Torbit Realty brings together the opinion of different stakeholders on this consumer-friendly development. …..Vinod Behl?

Boman Rustom Irani Irani, President CREDAI

The recent decision of MahaRERA to set up grading systems for all real estate projects in Maharashtra is another step in the right direction to sustain a conducive buying environment for home buyers. MahaRERA continues to set a high benchmark for all states, encouraging enhanced transparency and streamlining flow of information . This will not only help home buyers make an informed decision but also enable developers to provide a facilitating eco-system for consumers. Additionally, this new system will?rightfully add more merit to credible developers and projects, enhancing their value as a direct consequence.

Anand Gupta, Chairperson, Housing & RERA Committee of BAI?

MahaRERA has taken one more step in the form of grading of projects/developers to protect the interests of consumers. As a first step, they have invited suggestions from all stakeholders to formulate final rules to decide parameters for grading . Ever since RERA Act came into force, leading from the front, MahaRERA has taken many pro-consumer steps like compulsory regular compliances through chartered accountants, architects and RCC consultants of the projects. Because of strict regulation, compulsory?disclosure?of every information and time bound regular update compliances, the image of the industry in the eyes of consumers and financial institutes has gone up.

Rajive Kumar, Chairman, Uttar Pradesh RERA

It was the Uttar Pradesh Real Estate Regulatory Authority which had first taken this consumer-friendly initiative in 2020. in line with the provisions of RERA to ensure efficient and transparent sale of property, safeguarding the interests of home buyers. Our grading framework was based on various parameters – project construction quality ( including structural quality, timely delivery and any project cost overrun), project legal quality (including sales agreement clauses and clear marketable land title), project financial quality and compliance with UP RERA ( including escrow account and timely updates of mandatory reports). Since under RERA clause such a grading mechanism is of advisory?nature, we are waiting for the nod from the Uttar Pradesh government for setting up the grading mechanism.

Pradeep Kumar Aggarwal Aggarwal, Founder & Chairman Signature Global Group

This is a positive step towards ensuring transparency and empowering home buyers to make well-informed choices. Based on the evaluation of key factors,?MahaRERA’s grading system will provide a comprehensive assessment of projects. This will enable home buyers to assess the credibility and reliability of developers, giving them confidence in their investment decisions

The requirement?of regular updates on the MahaRERA?portal will further enhance transparency. This will go a long way in establishing trust between developers and home buyers.

Shalin Raina , Managing?Director, Residential , 戴德梁行

MahaRERA’s grading system for developers and real estate projects is a positive step towards ensuring transparency and accountability in the real estate sector. This will enable buyers to make informed decisions based on?the credibility and performance of developers. It will also put pressure on developers to improve their standards and quality of projects. It will encourage them to adopt best practices and maintain elevated levels of transparency in their dealings with?buyers. Overall, MahaRERA’s grading system is a significant leap towards ensuring a fair and transparent real estate market.

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https://www.torbitconsulting.com/grading-for-real-estate-projects-developers/