What shall be the cost implications of RERA?

RERA is likely to impact the cost as follows:

  • Cost of capital required for the project due to ban on prelaunch sale
  • Withdrawal from the separate account now has to be in proportion to percentage of completion of the project. Hence swapping of amount between different projects will not be possible.
  • Registration fees
  • Insurance covering land cost & construction cost
  • Defect Liability Period
  • Interest & compensation that may be required to be paid to the purchaser
  • Penalty that may be charged by the Authority
  • Increased documentation with the purchasers, estate agents etc.
  • Increased manpower for various compliances under RERA