The Real Estate (Regulation and Development) Act, 2016 (RERA), which regulates the real estate sector in India, has significant implications for the secondary real estate market (i.e., the resale or transfer of property) as well. Here are the key implications: Transparency and Disclosure Requirements: RERA mandates that all real estate projects (both ongoing and new) be registered with the Real Estate Regulatory Authority before they can be sold. This has led to increased transparency in the real estate market. For the secondary market, this means that the resale of properties in projects that are RERA-registered must include detailed information, including the legal standing of the property, the builder's track record, and the completion status of the project. Resale transactions now often require proper verification that the property complies with RERA rules, especially regarding approvals, documentation, and project completion. Title and Ownership Clarity: One of the significant concerns in the secondary market is the legitimacy of property titles. RERA has made it mandatory for developers to clearly disclose ownership and titles of land on which projects are built. For the secondary market, buyers can now verify the legitimacy of the title and ownership through RERA, reducing the risk of fraud or dispute. If the property being resold is part of a project that is registered under RERA, the secondary market buyer can check for any pending dues, encumbrances, or litigation associated with the property. Delay in Possession: RERA requires developers to deliver possession of properties on time, or they must compensate buyers for delays. In the case of the secondary market, if a buyer purchases a property from the original owner before possession is delivered, RERA mandates that the original buyer or seller is responsible for the possession timelines. However, if the developer fails to deliver possession as promised, the buyer can seek compensation from the developer, even if the property is in the secondary market. Defects Liability: Under RERA, developers are required to address defects in the property for up to five years after possession. While this provision is mainly for the primary market, the implications for the secondary market are that buyers can hold the original seller responsible for defects that arise within the warranty period, especially in case of a resale of new properties. Regulation of Agents and Brokers: RERA requires real estate agents to be registered with the regulatory authority. This ensures that real estate agents involved in secondary market transactions are licensed and adhere to certain standards. This brings a level of professionalism and accountability to the secondary market, reducing the risk of fraudulent or unscrupulous activities by unregistered or unauthorized agents. Increased Consumer Confidence: With RERA’s focus on consumer protection, buyers in the secondary market can be more confident about the property they are purchasing, especially if the project is registered with RERA. This is particularly important for resales in newer projects or projects with ongoing construction. The enhanced accountability of developers under RERA also indirectly improves the credibility of properties in the secondary market, fostering a healthier resale environment. RERA Compliant Documents for Resale: Resale transactions involving RERA-registered projects will require proper documentation, including a clear title of ownership, sale deed, and proof of the developer’s compliance with RERA. This standardization can speed up the transfer of ownership and reduce the time involved in the resale process. Consumer Rights and Grievance Redressal: RERA provides a mechanism for grievance redressal, which now extends to resold properties in RERA-registered projects. This gives buyers in the secondary market a formal platform to file complaints or disputes regarding the property, whether it’s about defects or issues related to the developer. In summary, RERA has brought about greater transparency, consumer protection, and legal clarity in the secondary real estate market. It has addressed many concerns that were previously hurdles in the resale of properties, such as legal disputes, possession delays, and title issues.

Dear client, One of the fundamental objectives of RERA is to promote transparency in real estate transactions. For the secondary market, this has several implications: • Access to Information: Buyers in the secondary market can now access crucial information regarding the property, including past ownership records, encumbrances, and the legitimacy of previous transactions. RERA mandates the maintenance of records and submission requirements that developers must adhere to, which indirectly benefits secondary buyers as they can verify the legitimacy of the properties before purchase. • Disclosure of Project Details: When a buyer from the secondary market purchases property from a developer who is registered under RERA, they can obtain key details regarding the status of the project, including occupancy certificates and completion certificates. This transparency helps buyers make informed decisions. Fraudulent activities and misrepresentation have long plagued the secondary real estate market. RERA addresses these issues by instilling a level of accountability among developers who have sold properties previously: • Regulatory Compliance: With developers required to comply with RERA guidelines, the risk of purchasing properties with pending legal issues or unfulfilled obligations is significantly reduced. Buyers in the secondary market can rely on the assurances provided by RERA-compliant developers, thereby minimizing the chances of disputes regarding property titles and payment histories. RERA has contributed to a more stable real estate environment, which positively impacts property valuation: • Increased Buyer Confidence: The introduction of RERA fosters greater confidence among investors and buyers regarding project completion and timely delivery. This boosted confidence can lead to increased demand for properties in the secondary market, ultimately enhancing their valuation. • Sustaining Market Integrity: By improving the overall reputation of the real estate market, RERA helps sustain the growth of both primary and secondary markets. Property prices may stabilize or even increase as buyers perceive the overall market as being more reliable. RERA's influence extends to financing mechanisms and transaction processes in the secondary market: • Ease in Securing Loans: Banks and financial institutions are now more willing to provide loans for properties associated with RERA-registered developers. This positively impacts buyers in the secondary market, enabling easier access to financing options for purchasing properties linked to compliant developers. • Standardization of Documentation: RERA emphasizes standardization across documentation related to property transactions, making it easier for secondary market participants to navigate the buying process. The clarity in documentation facilitates smoother transfers of ownership. The advent of RERA has introduced structured dispute resolution mechanisms, which also benefit the secondary real estate market: • Grievance Redressal: Buyers who face issues related to properties purchased in the secondary market have avenues for redressal through RERA. This facility encourages buyers to pursue genuine claims without the fear of protracted legal battles. We hope this clarifies your query. please feel free to reach out for further assistance. Thank you.

Dear client, 1. Enhanced Transparency and Documentation RERA mandates that all real estate projects (above a specified size) must be registered with the respective State Real Estate Regulatory Authority. This has improved the quality and accessibility of information, making it easier for buyers in the secondary market to verify key details. • Implication for Buyers: Buyers in the secondary market can now access project information, including legal approvals, layouts, project timelines, and previous ownership through the RERA portal. This reduces the risk of fraudulent transactions. • Implication for Sellers: Sellers must ensure that all documentation is in compliance with RERA norms. Failure to provide accurate project information can discourage potential buyers. 2. Increased Buyer Confidence RERA’s provisions for transparency and dispute resolution have boosted consumer confidence in the real estate market. This has led to greater participation in both primary and secondary markets. • Implication for Buyers: Buyers in the secondary market feel more secure due to the availability of information and the legal protections offered under RERA. • Implication for Sellers: Increased buyer confidence can lead to better liquidity in the secondary market, making it easier for sellers to find potential buyers. 3. Mandatory Compliance and Legal Clarity Although RERA primarily applies to developers and new projects, it indirectly affects secondary market transactions by requiring clear title deeds and legal compliance. • Implication for Buyers: Buyers are more likely to insist on RERA-compliant documentation (e.g., builder’s project registration number and clear legal title) before finalizing resale transactions. • Implication for Sellers: Sellers must ensure their property complies with RERA norms and that there are no pending disputes or incomplete legal processes. 4. Valuation and Pricing Impact RERA has introduced stricter rules for project delays and non-compliance, ensuring that properties with a valid RERA registration are considered safer investments. This affects property valuation in the secondary market. • Implication for Buyers: RERA-registered properties are perceived as more valuable, while unregistered or non-compliant properties may face a decrease in market value. • Implication for Sellers: Compliance with RERA standards can increase resale value, while non-compliance may lead to reduced demand and lower prices. 5. Dispute Resolution Mechanism RERA provides a dedicated dispute resolution mechanism through the Real Estate Regulatory Authority and the Real Estate Appellate Tribunal. • Implication for Buyers: Buyers in the secondary market can seek redress for issues like delayed possession, incomplete documentation, or misrepresentation by the previous owner. • Implication for Sellers: Sellers must ensure their transactions are legally sound and free from disputes, as buyers can hold them accountable under RERA’s provisions. 6. Limited Applicability to Older Properties RERA applies to projects launched after May 1, 2017, or ongoing projects that were incomplete at the time of its implementation. Fully completed and occupied properties before this date are not under RERA’s jurisdiction. • Implication for Buyers: Buyers of older properties may not receive the same level of protection as those purchasing RERA-covered projects. • Implication for Sellers: Properties outside RERA’s ambit may face increased scrutiny or lower market value compared to RERA-registered properties. We hope this clarifies your query. please feel free to reach out for further assistance. Thank you.