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