Introduction: This article discusses in details about the exemptions from registration of real estate project under RERA (Real Estate Regulation and Development Act, 2016).
Following real estate projects are exempted from registration requirements under RERA:
1. Where the area of land proposed to be developed does not exceed 500 sq meters or the no. of apartments proposed to be developed does not exceed 8 inclusive of all phases.
If the State / UT Govt. considers to be necessary, it may reduce the threshold limit of 500 meters or 8 apartments for exemption from registration under this Act.
2. Where the promoter has received completion certificate for a real estate project prior to commencement of this Act.
3. Where the real estate project is for the purpose of renovation or repair or redevelopment which does not involve marketing, advertising, selling or new allotment of any apartment, plot or building.
4. Any real estate project outside the boundary of Planning Area.
However, if the RERA authority thinks necessary in the interest of allottees for the real estate projects being developed outside the boundary of Planning Area, may by order, direct the promoter of such project to get the project registered under RERA and all the provisions of this Act, rules or regulations made there under shall apply to such projects from that stage of registration.
The author is a practising CA and is registered Insolvency Professional. He can be reached at [email protected], Mob. +91 9953587496.
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Is RERA registration required for a project to construct commercial spaces lease / rental purpose?
Would the provisions of compensation under RERA still apply to projects that are exempted from registration under the Act?
I have an enquiry reg. application of the RERA Act. If a buyer in UP has paid full amount due for a house to a developer till Mar-2017 which is also ready for delivery on that date. But he has not taken possession nor got the sale registered in his name hoping that he will find a new buyer and then get the sale deed for the house directly registered in the name of the new buyer which is typically facilitated by real estate developers by charging a certain transfer fee, which is also stipulated in the booking agreement. Is there any ban imposed on sale / registration after RERA has come in to the effect directly in favour of a new party which the initial applicant brings. It avoids double registration, once from the developer to the initial buyer and later from initial buyer to the 2nd buyer. Needless to say that it also avoids double payment of stamp duty for twice registrations.
Any real estate project outside the boundary of Planning Area. Please elaborate on Planning Area under RERA Act what it stipulate.