Major concerns of Consumer

• Developers track record
• Ownership of land whether fully owned to purchase, joint venture, any other.
• Statement by developers that 30% of the revenue receipts to be put in the ESCROW account. Withdrawal from ESCROW to the links with construction stages
• Location of the project
• License to develop the project received from the local bodies by the developer
• Timely completion of the project
• Type of construction and the construction material to be used
• Floor plans
• Design of the project
• Sanction of building plans
• Parking facilities for vehicles
• Electricity, water, drainage, sewerage connections both "off-site" and internal
• Off-site infrastructure to be provided by local bodies
• The security needs of residents
• Provision of social infrastructure by developers linked with stages of habitation
• Maintenance of colony/property by developers
• Mechanism for redressal of grievances of the purchaser/investor
• Penalty clause on developer for deviating from the terms offered in the prospectus. Subsequently, NAREDCO signed a MOU with CRlSIL, a leading rating agency on the 28 September 1999.

CRISIL - NAREDCO Rating Symbols for Real Estate Projects

The rating symbols use the letter PA indicating Project development Ability of the developers.

PA1 : Highest Ability

This rating indicates the highest ability of the developer to specify and build to agreed quality levels and transfer clear title within stipulated time schedules.

PA2 : High Ability

This rating indicates that the developer's ability to build the project to specified levels, time schedules and transfer clear title, is high. Project risks are marginally higher in this category when compared to projects in the 'PA1' category.

PA3 : Adequate Ability

This rating indicates that the developers' ability to build to specified quality levels and adhere to time Schedules is inadequate. Uncertainties facing the project could result in inability or unwillingness to complete projects.

PA4 : Inability

This rating indicates inability of developer to complete projects or transfer clear title.

CRISIL - NAREDCO Rating Symbols for Real Estate Developers

The Rating symbols of Real Estate Developers' rating use the letter, DA indicating Developer's Ability to execute projects, as suggested by his track record.

DA1 : Excellent

The developer's past track record in executing real estate projects as per specified quality levels and transferring clear title within stipulated time schedule, is excellent.

DA2 : Very Good

The developer's past track record in executing real estate projects as per specified quality levels and time schedules and transferring clear title, is very good.

DA3 : Good

The developer's past track record in executing real estate projects to reasonable quality levels and time schedules and transferring clear title, is unsatisfactory.

DA4 :Unsatisfactory

The developer's past track record in executing real estate projects as per specified quality levels and time schedules and transferring clear title, is unsatisfactory.

DA5 : Poor

The developer's past track record in executing real estate projects as per specified quality levels and time schedules and transferring clear title, is poor.

For more detailed information, please go to www.naredco.org\News and articles\Rating

2. ICRA - NAREDCO RATING

NAREDCO would very shortly enter into a Memorandum of Understanding with ICRA (formerly investment Information and Credit Rating Agency of India Limited). ICRA was set up in 1991 by the leading financial / investment institutions, commercial banks and financial services companies as an independent and professional investment information and credit rating agency.