The importance of Escrow Accounts in real estate transactions
The real estate industry plays a pivotal role in the lives of the common man, as it provides the foundation for shelter, investment, and financial stability. It is a linchpin of the economy, shaping GDP, generating employment, and driving economic growth. However, certain issues have been observed in the behaviour of specific participants within the sector.
Litigation within the sector has seen a notable increase, with cases reaching the Supreme Court. The Supreme Court has issued significant judgments in these cases. Additionally, both the Union and State Governments have introduced the RERA Acts and corresponding guidelines to ensure the timely and proper completion of real estate projects. While the RERA Act and guidelines have contributed to improving the conduct of the sector, buyers and lenders may still find themselves on the brink of protracted legal battles when trying to recover their investments in case of issues.
The present protocol seeks to utilize blockchain technology for the purpose of enhancing efficiency within the Real Estate ecosystem while adhering to the RERA Act. This strategy grants all stakeholders, which encompass the RERA authority, financial institutions, and purchasers, the ability to actively monitor project progress, potentially diminishing the necessity for resolution through the RERA authority, Consumer Forums, or the legal system. As a result, this could result in more punctual project completions in alignment with RERA regulations.
Also Read: Building Your Dream Home: Key financial considerations for constructing a house in India
The execution of the process flow for RERA projects will differ from one state to another. Moreover, the State’s officially designated RERA Authority must
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