Apart from notifying the setting up of a regulatory authority, there are several features of RERA that will ensure a fair real estate deal to a buyer, the note mentioned.
RERA will ensure that developers park 70% of the construction project fund in a dedicated bank account. This will prevent developers from investing in numerous new projects with the proceeds of the booking money for one project — which delayed handover of units to consumers.
Another major change that will be seen is that the usual deduction of up to 42% in space of a property in the name of built-up and super built-up area is now “illegal”.
“The extra space that a builder usually lost was nothing more than 13% to 18%. But the developer used to deduct 42% in the name of super built-up and built-up areas. This will no more be possible,” said a senior urban development official. “The builder has to now charge on actual carpet area. This may even lead to a hike in prices by at least Rs 300 per square feet in new properties,” said the official. RERA also makes it mandatory for developers to post all information on project plan, layout, government approvals, land title status, sub contractors to the project, schedule for completion with the State Real Estate Regulatory Authority (RERA).
“Earlier the builder used to show a second lay out plan to the consumer and not what has been approved by the civic body. It is for this reason that many features that had been promised during marketing never made it on ground,” said the UDD official.