After RERA we can expect transparency and efficiency in the sector in terms of delays, price, and quality of construction. In addition to this, the promoter of a real estate company has to maintain a separate escrow account for each of their projects. A minimum 70 per cent of the money from investors and buyers will have to be deposited. This money can only be used for the construction of the project and the cost borne towards the land. As per RERA, developers can’t ask more than 10 per cent of the property’s cost as an advanced booking amount. If a builder defaults on delivery within the agreed deadline, he will be required to return the entire money invested by the buyers along with the pre-agreed interest rate mentioned in the contract made as per the guidelines of RERA. This will lead to growth in real estate sector as strong compliance will boost the confidence of investors and simultaneously now builders will also benefit from more buyers.
via RERA will act as a booster for big players of real estate; 5 top picks – The Financial Express
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