Real Estate under RERA Regime.

After 4 months of implementation of RERA, Builders and Developers are in dilemma of legal compliances relating to RERA. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 has altered the Real Estate Business altogether and it is a big challenge for professional to help their client with the same. In this Article we are going to deal with the basic question of how the working style and business practices going to get affected under RERA regime.

Following are the key points for understanding the impact:

  1. No Real Estate promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project.
  2. A promoter cannot even market or advertise the project without registration. This means there cannot be pre launching or pre booking for project which can be a big financial issue for some.
  3. No Real Estate promoter can accept more than 10% of sales consideration for the buyer without getting into an Agreement of sale.
  4. 70% of the amounts realized for the real estate project from the allottees has to be kept in a separated Bank account to cover the cover the cost of construction and the land cost and shall be withdrawn only after getting a signed certified by an engineer, an architect and a chartered accountant in practice.
  5. Get his accounts audited within six months after the end of every financial year by a chartered Accountant in practice and shall produce a statement of accounts duly certified and signed. Fact that the amounts collected for a particular project has been utilized for the project and the withdrawal has been in compliance with the proportion to the percentage of completion of the project, has to be audited by a chartered Accountant in practice along with other compliances.
  6. The Builder/Developer has to make sure that Cancellation and refunds are handled in accordance with the Act.
  7. Project should have its Brokers and Agents listed with the Real Estate Regulatory Authority (RERA) and all those Brokers and Agents should be registered as Real Estate Agents with the RERA.
  8. The Promoter has statutory duty to operate with in various time frames, he shall ensure timely Completion of the project, and completion certificate is obtained, occupancy certificate and forming a Residential welfare society and handing over possession of common area to it.
  9. Online Web page has to be maintained with RERA regarding project and has to be updated.
  10. Quarterly filing with RERA for every project along with Annual Filing.

As a professional we can serve our clients in following ways in this new field:

Scope of work under RERA:

  • Consultancy relating RERA compliances.
  • Registration of Real Estate Project.
  • Registration of Real Estate Agents.
  • Managing fund in accordance with Section 4(2)(1)(D) Of The Act.
  • Issuing certificate of withdrawal for Specific Bank Account under RERA.
  • Handling legal litigation and representing client in RERA and Appellate Tribunal.
  • Drafting Brochure, Allotment Letter, Agreement to Sale and Sale Deed in accordance with the REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016.
  • Filing Quarterly update with RERA.
  • Audit of Financials in accordance with Section 4(2)(1)(D) Of The Act and filing with the RERA.

Author Bio

Qualification: CA in Practice
Company: N/A
Location: Jaipur, Rajasthan, IN
Member Since: 05 Sep 2017 | Total Posts: 1

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7 responses to “Compliances under RERA, 2016”

  1. parth kothari says:

    sir the quarterly return 2C by CA under RERA has to be submited physically or to be uploaded on RERA website

  2. Ravi says:

    Dear Mr Rathore,
    A Real Estate Project registered under Section 3 of RERA is completed and possession handed over to customer in Dec 2017… The customer intends to sell the apartment in July 2018 and engages an Real Estate Agent to find a prospective buyer .. Should the Real Estate Agent be an RERA registered person or even unregistered Real Estate Agents shall deal with the transaction … Please advise

    • miteshrathore says:

      Dear Ravi Ji, there is statutory liability of every real estate agent to get registered with RERA. Intendent parties of transaction(buyer and seller) are advised to get a registered real estate agent. Parties can file complaint with RERA in case of fraud or any failure of duties on the part of agent.

  3. atul4172 says:

    Dear sir,
    I want to get the advice for RERA. I have N.A. land with commercial permission. I want to sell it,but the purchaser wants to involve with development agreement with us. Now i want to know that in RERA land owner has any responsibility in development agreement??

    Please guide me..

    • miteshrathore says:

      Dear Atul in such case landowner and developers are treated as co-promoters and have joint responsibility under the act. While registering the project both the parties ie landowner and developers has to be registered as co promoters for such project.

      • dhrumil ganna says:

        The responsibility can be defined in an agreement and the same can be uploaded on the portal

        • miteshrathore says:

          dhrumil ganna ji, agreement can define responsibility between the landowner and developer among themself. For RERA both landowner and developer are jointly liable towards the buyer.

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