When investing tens of crores into a luxury property, legal security is paramount. The introduction of the Real Estate (Regulation and Development) Act (RERA) has fundamentally transformed the Indian real estate market, bringing much-needed transparency and accountability. ### Why RERA Matters for UHNWIs Before RERA, the market was heavily skewed in favor of developers. Delays in possession, changes in building plans without consent, and fund diversion were common issues. RERA has leveled the playing field. ### Mandatory Escrow Accounts One of the most significant protections under RERA is the mandate that developers must deposit 70% of the funds collected from buyers into a separate escrow account. This money can only be used for construction costs of that specific project, eliminating the risk of fund diversion to other projects. ### Carpet Area Standardization Previously, developers sold properties based on ambiguous "super built-up area" calculations. RERA mandates that properties must be sold based on "carpet area"—the actual usable floor area within the walls. This ensures you pay only for what you get. ### Strict Penalties for Delays If a developer fails to hand over the property by the promised date, they are liable to pay interest to the buyer for every month of delay. This has drastically improved delivery timelines in the premium segment. At LuxeEstate, our legal team ensures that every primary property we advise on is fully RERA compliant, offering our clients total peace of mind.