Lesson 2 of 3 · 8 min
The seventy and the ten
Two percentages decide whether your money is safe before a brick is laid: how much must be ring-fenced, and how much can be taken before an agreement exists.
The failure this part of the law was written against is simple and it ruined a great many families: money collected for one project was spent on another, the first project stalled, and the buyers had no claim on their own money. Two rules address it, and both are numbers you can check.
Read the certification requirement twice. It is not the promoter's own statement that thirty per cent of the building is done — it is three professionals in three different disciplines saying so, each with their own registration to lose. That is what makes the proportion-to-completion rule enforceable rather than aspirational.
Your turn
A flat is priced at ₹60 lakh. What is the most that may be taken as an advance before a written, registered agreement for sale exists, in rupees?
The agreement itself is not a formality either. It has to specify the particulars of development including construction, specifications, internal and external development works, the dates and manner in which payments are to be made, and the date on which possession is to be handed over. That last date is what the next lesson turns on.
Check yourself
1 / 3
Kabir asks
How much of the money collected from buyers must sit in a separate account?
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