What are the objects and reasons for which the Real Estate Development and Regulation Act has been framed?
The Real Estate Development and Regulation Act is intended to ensure accountability towards allottees and protect their interest, infuse transparency, ensure fair play and reduce frauds & delays, impose certain responsibilities on both promoter and allottees, establish fast- track dispute resolution mechanism and finally promote good governance in the sector which in turn would create investor confidence.
A Person who constructs or causes constructions, develops a land into a project like plotting with or without structures.
A Development Authority or any public body can be a promoter. On land owned by the Govt. State Level/Primary Co-operative housing society also does come under the definition of a Promoter. Any person who acts as a Builder, Colonizer, Contractor or by any other name having Power of Attorney(POA)/Development Agreement from the owner of the land is also the promoter.
Any person who introduces through any medium Buyers and Sellers and negotiates or acts on behalf of any one party to sell/transfer apartments/shops/plots in a Real Estate Project to another party or help to buy- for remuneration/fees.
Development of a building, converting existing buildings into Apartments, Development of land into plots/apartments for sale of all/some including common areas, external and internal development works, easement and rights.
Development means carrying out the development of immovable property, engineering, etc. In, On, Over or Under the land including redevelopment.
Any document described or issued as advertisement through any medium including notice, circular or other documents or publicity in any form, informing people about a Real Estate Project or offering the sale of a plot, building or apartment or inviting persons to purchase in any manner such plot, building or apartment to make advance or deposits for such purposes.
RERA act was notified on 26 March 2016 by Government of India . It is applicable to whole of India except the state of Jammu and Kashmir.
Yes, Commercial and plotting projects also come under RERA.
Carpet area means the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.
1) Where the area of land proposed to be developed does not exceeds 500 square meters or no. of apartments does not exceed 8 in number.
2) The promoter has already received completion certificate for a real estate project prior to commencement of this Act.
3) For the purpose of renovation or repair or re-development which does not involve marketing, advertising selling or new allotment of any apartment, plot or building.
> Brief details of the enterprise
> Brief details of projects launched by him in the past five years whether already completed or being developed, including current status of said projects, any delay in its completion, details of cases pending, details of type of land and payments pending.
> Authenticated copy of approvals and commencement certificate from competent authority for real estate project mentioned in application.
> The sanctioned plan, layout plan and specifications of the proposed project
> The plan of development works to be executed in the proposed project and the proposed facilities to be provided including fire fighting facilities, drinking water facilities, emergency evacuation services, use of renewable energy.
> The location details of the project, with clear demarcation of land dedicated for the project along with its boundaries including the latitude and longitude of the end points of the project.
> Proforma of the allotment letter, agreement for sale, and the conveyance deed proposed to be signed with the allottees.
> The number, type and the carpet area of apartments for sale in the project along with the area inclusive of balcony or verandah and the exclusive open terrace areas within the apartment .
> The number and areas of garage for sale in the project
> The names and addresses of his real estate agents, if any, for the proposed project
> The names and addresses of the contractors, architect, structural engineer, if any and other persons concerned with the development of the proposed project.
> Declaration, supported by an affidavit, which shall be signed by promoter or any person authorised by promoter.
> That he has a legal title to the land on which the development is proposed along with legally valid documents with authentication of such title, if such land is owned by another person.
> That the land is free from all encumbrances or as the case may be details of the encumbrances on such land including any rights, title, interest or name of any party in or over such land along with details.
> The time period within which he undertakes to complete the project or phase.
> That seventy per cent. of the amounts realised for the real estate project from the allottees, from time to time, shall be deposited in a separate account to be maintained in a scheduled bank to cover the cost of construction and the land cost and shall be used only for that purpose.
> That the promoter shall take all pending approvals on time from competent authorities.
> That the promoter has furnished such other documents as may be prescribed.
What percentage of the amount from the buyers of a Real Estate Project should be deposited in a separate Bank account?
70 % of the amount realised from the buyers of a Real Estate Project shall be deposited in a separate account with a scheduled bank. Only this amount can be used to cover the cost of construction and the cost of land.
Note: The amount to cover the cost of construction and the cost of land can be only be withdrawn after the promoter have received a withdrawal certificate duly signed by a CA, an Architect and an Engineer.
What is the time period within which a Real Estate project deemed to be registered/rejected by the Authority?
The Authority has a time period of 30 days within which it has to give a verdict on the status of registration of a project.
If the Authority fails to grant registration or reject the application, project shall be deemed to have been registered and authority shall within a period of 7 days provide a registration number and a Login Id and password to the promoter for accessing the website of the Authority and to create his web page and to fill therein the details of the proposed project.
Yes, the authority may on receiving any complaint or suo moto (Self) may revoke the registration granted .
If a promoter
- Is default in doing anything under Act / Rules / Regulations.
- Violates any terms or conditions of approval given by competent authority.
- Is involved in any kind of unfair practice or irregularities
- Indulges in any fraudulent practices
If a builder violates the registration procedures prescribed by the Act, the promoter will be required to pay up to 10% of the total estimated cost of the project in question. If found continuing the offence, the promoter will be punishable either with imprisonment (up to 3 years) or a fine which may extend up to a further 10% of the above project cost
If an agent violates the rules prescribed by the RERA, (s)he will be liable to a penalty for every day of the violation caused and the sum could increase up to 5% of the total estimated cost of the unit in question.