Apart from drop in housing sales, the article briefly mentions the impact of RERA on Real Estate sector. Top five salient features of RERA are provided below for readers’ reference:
1) According to the new law, the developer can’t make any changes to the plan without the written consent of the buyer. This provision will not allow the developer to increase the cost of their projects.
2) The law ensures that realty project is completed in time. If delayed, then the developer will have to pay interest on the amount paid by the buyer.
3) As per the new act, every phase of apartment will be considered a standalone real estate project, and separate registration needs to be obtained for each project.
4) It is compulsory for a state to establish a State Real Estate Regulatory Authority as per the new act. Buyers could approach this body for redressal of their grievances.
5) The property will have to be sold to buyers based on carpet area and not on super built-up area which will become illegal under the new law.
Source: “Dalal Street Investment Journal”