The much-vaunted Real Estate ( Regulation and Development) Act, 2016 (Real Estate Act) obtained the presidential assent on March 25, 2016 and entered into force in May, 2017. The law was implemented after extensive debates and consultations with a view to creating an Authority to control and promote the property market in India. Recently, the commercial property sector has gained immense notoriety in India owing to unprecedented growth of real estate and construction being seen across the country. This strong demand for creation of real estate in India has led to the property developers in India taking a dominant role. General patterns in the real estate sector show that the contractors frame one-sided deals that are strongly tossed in favor of the owner with terms of service Throughout many instances, this trend has led to the misuse of dominant role by the contractors with buyers experiencing, inter alia, impediments such as delays in delivery of flat belongings, modifications in the allotment.
Key Features of the Real Estate Act
1. Registration of Real Estate Projects
Under Section 3, the Act mandates prior registration with the Real Estate Regulation Authority (RERA) of the immobilities project. The said bars from advertising or selling to builders and advertisers, or welcoming anyone to purchase any property, flat or house in any real estate project without RERA authorization.
2. In which cases Real Estate Projects can be exempted from Registration?
• The Act under Section 3(2) states that no registration of an immovable property project is required.
• Where the project is 500 or only around 500 square metres.
• The total of apartments included in all proposed development stages is less than 8.
• Where the producer has obtained a certificate of full implementation for the real estate project before the Act begins .
3. Checklist for Registering Real Estate Project
The producer must submit a request for immovable property project enrollment together with the prescribed fee. Documents to join the proposal include:
● Brief info about Promoter’s company
● Brief description of the project to start by the promoter.
● Copies of the initial certificate and the approval from the relevant authorities.
● Project approved, development design and project requirements.
● Project program to conduct in the project
● Proforma of letter of allotment, selling and conveyance arrangement with allottees agreed to be signed
● Number and type of apartment carpet area for sale under project.
● Range of garages available for sale in project.
● Home address of (if any) real estate brokers
● Home address of process improvement contractors , architects and project managers
● Sponsor’s declaration such as affidavit
4. What declarations the Promoter makes in application?
● Because he has legal claim to the sought-after estate, but the same is exempt from all burdens
● The time limit under which the developer plans to finish the project
● 70 per cent of the project allocated amount is deposited in a different account with a non scheduled bank
● That producer shall take permits as legally required
5. Under what circumstances can registration of real estate projects be revoked?
The RERA may withdraw the enrollment on suo moto or upon receipt of the complaint when:
● Producer does not do anything allowed by the Real Estate Act
● Producer violates any terms of service of authorisation provided by the competent authority
● Promoter engages in any form of illegal action or irregularity
6. Registration of Real Estate Agents
Section 9 of the Real Estate Act allows the immovable agent to be licensed under the Act. A real estate broker can not undertake the purchase or selling of any property project legally registered under the Law without obtaining registration
7. What are the duties of the Promoter under the Act?
Develop a web page on the RERA website and enter all of the info of the proposed public viewing project.
● The real estate project brochure will highlight the RERA web address in which project specifications were entered
● The producer shall notify the Allottee at the booking and issuance of the Allotment Form of the approved plans, configuration and project requirements as well as the phase-in timetable for completing the project
● When any person has made an advance or investment based on information found in the advertisements or prospectus that is false or inaccurate, the person shall be paid in that case by the Production company as provided for in the Real Estate Act, Section 12.
● Such a seller does not consider a total of more than 10 per cent of the allotment expense without reaching a selling arrangement with the allotted.
● That the proposal is completed by the developer according to the designs and templates approved.
8. Can the promoter make alterations in the agreed project?
If the allottee consents to the same, the producer couldn’t make any changes in the mission’s mandated designs and specifications. However, the promoter will make small changes if necessary due to way to customize.
9.What is the duty of the promoter when the project is transferred to a third party?
If the allottee consents to the same, the producer could n’t make any changes in the mission’s mandated plans and specifications. However, the producer will make small changes if necessary due to way to customize.
10.What happens if the promoter fails to handover possession within the stipulated time period?
If the producer fails to produce ownership of the allocation by the given date, then if the allottee wishes to pull back from the task, he is held liable to refund along with the specified rate to the allottee. In such a situation, the promoter must always pay the allottee in the form specified out in the Act.
11.What are the rights of a homebuyer/allottee under the Act?
● To get information about the project’s approved proposals, design and requirements.
● To be informed of the routine of end of the work in stages
● Able to claim ownership of the allotment
● Able to claim reimbursement of the quantity with value if the producer fails to grant the allocation
12.What exactly is RERA?
RERA is the Authority established under Real Estate Act to govern and encourage the real estate sector and to maintain the selling of land, constructing apartments as the case may be or the selling of immovable property projects in an effective and clear manner and to protect customers in the real estate sector.
13.What are the penal provisions under the Real Estate Act?
The Act means penalties for failing to register immovable property programs. This notes that if the developer refuses to declare the property as provided for in Section 3 of the Real Estate Act, he will be liable for a fine that could amount to 10 percent of the total cost of the real estate project.