RERA : The Paradigm Shift in Indian Real Estate Market

Here is a look at the real estate regulator and how it will impact the real estate market.

Few important points

1. Project Developers cannot change the information once entered very easily. So have to be very careful in what they upload. And the owner/Director will be responsible for all the information provided.

2. Society to formed once 51% of the flats booked even if the project is Under construction. This we feel will have a greater impact on Developers as there will be 2 Authorities checking on you ie. RERA and the CHS (Co-Operative Hosing Society)

3. Plans and layouts can be changed only with the permission from 2/3rd buyers.

4. To update the project details in 3 months but it was suggested to do it asap.

5. If the project is JV on Revenue Sharing basis the land owner will be considered as joint promoter and will be covered by RERA rules and he will be also equally responsible. Thats even true where the land owner is a CHS in case of Re Development.

6. If the project is being done phase wise and if in the 1st phase Developers are not providing common amenities like Club House etc.then they cannot put ads and make brochures showing common amenities.

7. At the time of registration details of past 5 years projects done and even what was the possession date promised and when was possession given are being asked.

8. Details of FSI proposed and approved.

9. Project cost estimation where in Developers have to bifurcate the Land Cost and the Construction cost. We feel this will make public how much is a Developer's profit.

10. Estimated figures given can be changed. But there is lot of information which cannot be changed. So have to be careful while putting information.

11. Open Parking can't be sold.

12. The penalties are quite high.

13. Ongoing projects have window of 3 months to register but was suggested to do it asap to avoid last moment delays.

14. Everything online so no need to go to RERA office except for complaints hearings.