Brief on Rajasthan Real Estate (Regulation & Development) Rules, 2017

In exercise of the powers conferred by section 84 of the Real Estate (Regulation and Development) Act, 2016 (Central Act No. 16 of 2016), the State Government, has made the Rajasthan Real Estate (Regulation and Development) Rules, 2017 enacted from May 1, 2017.

FORMS (Link to download forms – http://rera.rajasthan.gov.in/Home/DownloadForm)

Form A (see rule 3(2)):- Application for Registration of Project

Form B (see rule 3(4)):- Declaration

 Form C (see rule 6(1)):- Registration Certificate of Project

Form D (see rule 6(2), 7(4), 8):- Intimation of Rejection of Application for registration of Project/ Rejection of application for extension of registration of project/ Revocation of Registration of Project

Form E (see rule 7(1)):- Application for Extension of Registration of Project

Form F (see rule 7(4)):- Certificate for Extension of Registration of Project

Form G (see rule 9):- Agreement for Sale

Form H (see rule 10(1)):- Application for Registration of Real Estate Agent

Form I (see rule 11(1)):- Registration Certificate of Real Estate Agent

Form J (see rule 11(2), 12(4), 13):- Intimation of Rejection of Application for registration of Real Estate Agent/ Rejection of application for Renewal of Registration of Real Estate Agent / Revocation of Registration of Real Estate Agent

Form K (see rule 12(1)):- Application for Renewal of Registration of Real Estate Agent

Form L (see rule 12(4)):- Renewal of Registration of Real Estate Agent

Form M (see rule 27(2)):- Appeal to Appellate Tribunal u/s 44 of the Real Estate (Regulation & Development) Act, 2016

Form N (see rule 35(1)):- Complaint to the Real Estate Regulatory Authority u/s 31 of the Real Estate (Regulation & Development) Act, 2016

Form O (see rule 36(1)):- Application to Adjudicating Officer

Form P (see rule 37):- Annual Statement of Accounts

Form Q (see rule 38):- Annual Report to be Prepared by the Authority

Definitions (Rule 2)

• “Layout Plan”:- means a plan of the project depicting the division or proposed division of land into plots, roads, open spaces, amenities, etc. and other details as may be necessary and includes building layout plan.
• “Limited Common Areas and Facilities” :- means those common areas and facilities which are designated in writing by the promoter before the allotment, sale or other transfer of any apartment as reserved for use of certain apartment or apartments to the exclusion of the other apartments.
• “Planning Area”:- means a planning area or development area as specified under the master plan.
• “Project Land”:- means any piece, parcel or parcels of land on which the project is developed and constructed by a promoter.

Additional information and documents to be furnished by the promoter for registration of project (Rule 3)

• The promoter shall furnish the following additional information and documents for registration of the real estate project with the Authority namely:

(a) authenticated copy of the PAN card of the promoter;

(b) audited balance sheet of the promoter for the preceding financial year;

(c) the number of parking areas in each type of parking such as open, basement, stilt, mechanical, parking etc. available in the said real estate project;

(d) copy of the legal title deed reflecting the title of the promoter to the land on which the real estate project is proposed to be developed along with legally valid documents for chain of title with authentication of such title;

(e) the details of encumbrances on the land on which development is proposed including any rights, title, interest or name of any party in or over such land along with details;

(f) where the promoter is not the owner of the land on which development is proposed details of the consent of the owner of the land along with a copy of the collaboration agreement, development agreement, joint development agreement or any other agreement, as the case may be, duly executed, entered into between the promoter and such owner and copies of title and other documents reflecting the title of such owner on the land proposed to be developed; and

(g) such other information and documents, as may be specified by the regulations.

• The promoter shall pay a registration fee at the time of application for registration by way of a demand draft, a bankers cheque drawn on any scheduled bank or through online payment mode, as the case may be, for a sum calculated at the rate of, –

• For Group Housing Projects –

Rs.5 per square meter for project where the area of land proposed to be developed does not exceed 1000 square meters, or

Rs.10 per square meter for project where the area of land proposed to be developed exceeds 1000 square meters but shall not be more than Rs 5 lakh

• For Mixed Development (Residential and Commercial)-

Rs.10 per square meter for project where the area of land proposed to be developed does not exceeds 1000 square meters, or

Rs.15 per square meter for project where the area of land proposed to be developed exceeds 1000 square meters but shall not be more than Rs 10 lakh

• For Commercial Projects-

Rs.20 per square meter for project where the area of land proposed to be developed does not exceeds 1000 square meters, or

Rs.25 per square meter for commercial or any other projects where the area of land proposed to be developed exceeds 1000 square meters but shall not be more than Rs 10 lakh

• For Plotted Development Projects-

Rs. 5 per square meter but shall not be more than Rs. 2 lakh

• In case the promoter applies for withdrawal of application for registration of the project before the expiry of the period of 30 days provided u/s 5,
• Registration fee to the extent of 5% paid under sub-rule (3) above, or Rs. 25,000 whichever is more, shall be retained as processing fee by the Authority and
• The remaining amount shall be refunded to the promoter within 30 days from the date of such withdrawal.

Disclosure by promoters of ongoing projects (Rule 4)

• Upon the commencement of section 3(1), promoters of all ongoing projects which have not received completion certificate as required under local law shall within the period of 3 months from 1st May, 2017 i.e. the date of the commencement of the act, make an application to the Authority in rule 3.
• The promoter shall disclose all project details as required under the Act, rules and regulations made there under including the status of the project and the extent of completion.
• The promoter shall disclose the size of the apartment based on carpet area even if earlier sold on any other basis such as super area, super built up area, built up area etc. which shall not affect the validity of the agreement entered into between the promoter and the allottee to that extent.
• In case of plotted development the promoter shall disclose the area of the plot being sold to the allottees.
• Where the project is to be developed as separate buildings in phases, every such building or group of buildings as decided or declared by the promoter at the time of registration shall be considered as a phase and the promoter shall obtain registration under the Act for each phase separately.

• “Ongoing project” :- means a project where development is going on and for which completion certificate has not been issued but excludes such projects which fulfill any of the following criteria on the date of commencement of relevant provisions of the Act:

1. where common areas and facilities have been handed over to the association of allottees or the competent authority, for maintenance;

2. where sale/lease deeds or possession letter of minimum 60% of the apartments /houses/plots in the phase/project have been executed;

3. where all development works have been completed and completion certificate has been obtained from chartered engineer in practice as per prevalent Township Policy;

4. where completion certificate has been obtained from the competent authority or where all development works have been completed and application has been filed with the competent authority;

5. where development is done in phases then each phase shall be considered as a separate project and the phases which fulfill any of the above conditions shall be excluded;

6. where competent authorities/local bodies have started issuing lease deeds for plots by organising camps or otherwise in township schemes; or

7. Where services have been handed over to the local authority for maintenance or more than fifty percent of the development charges for the same have been deposited to the local authority.

Withdrawal of sums deposited in separate account (Rule 5)

• As per sub-clause (D) of clause (l) of sub-section (2) of section 4:

 1.70% of amount realized from allottees to be deposited in separate bank account for each project and used only for the concerned project.

 2. The promoter shall withdraw the amounts from the separate account, to cover the cost of the project, in proportion to the percentage of completion of the project.

• Project Bank Account shall be freezed in case of non-compliance of provision of the RERA.
• Withdrawal to be certified by an engineer, an architect and chartered accountant in practice that the withdrawal is in proportion to the percentage of completion of the project.
• Projects accounts shall be audited and copies of those shall be submitted to the RERA.

(1) For the purposes of sub-clause (D) of clause (l) of sub-section (2) of section 4, the land cost shall be the cost incurred by the promoter whether as an outright purchase, lease charges etc. and includes,

• revenue or area share given to land owner in lieu of land under any kind of agreement such as Joint Venture, Joint Development etc., in case the Promoter is not the owner of the land,
• amount paid to land owner,
• incidental costs related to acquisition of land such as stamp duty, brokerage, settlement costs of litigation, premiums paid to government authorities related to land,
• interest on finance for purchase of land,
• litigation costs incurred for land acquisition,
• property and other taxes, fees, premiums paid.

(2) For the purposes of sub-clause (D) of clause (l) of sub-section (2) of section 4,

The construction cost = The total cost incurred by the promoter (towards the on-site expenditure for the physical development of the project) + fees payable to the architects, consultants, project managers/staff including engineers, marketing agents etc. fees/charges/security deposit payable to various departments/authorities, Labor Cess, VAT which are incurred during the development of the project.

Don’t forget to read about:

Rajasthan VAT: Deemed Assessment Scheme for year 2016-17

Application for Registration by the Real Estate Agent (Rule 10)

• Every real estate agent required to register as per section 9(2) shall make an application to the Authority along with the following documents, namely:

(a) brief details of his enterprise including its name, registered address, type of enterprise (proprietorship, society, partnership, company etc.);

(b) particulars of registration (whether proprietorship, society, partnership, company etc.) including the bye-laws, memorandum of association, articles of association etc. as the case     may  be;

(c) photograph of the real estate agent if it is an individual and the photograph of the partners, directors etc. in case of other entities;

(d) authenticated copy of the PAN card;

(e) authenticated copy of the address proof of the place of business; and

(f) such other information and documents, as may be specified by regulations.

• The real estate agent shall pay a registration fee at the time of application for registration by way of a demand draft or a bankers cheque drawn on any scheduled bank or through online mode, as the case may be For a sum of

1. In case of the applicant being an individual :- Rs 10,000 or

2. In case of the applicant being anyone other than an individual :- Rs. 50,000

Solid credentials needed to start any project

• Developers would be required to submit authenticated copy of PAN card, Annual Report comprising audited profit and loss account, balance sheet, cash flow statement and auditor’s report. Not only this, if the promoter is not the owner of the plot they would have to give a copy of the legal title deed and copy of collaboration agreement and Joint Development Agreement. They would also have to give information regarding the number of open and closed parking areas in the project.

Complete information on the Developer / Promoter

• Complete details of developer / promoter has to be made available on the Authority’s website. The information would include company profile, track record, details of any legal cases, Project Details, Registered Agent Details, Consultants, Development Plan, financial details of the promoters, status of approvals and projects among other things.

Quarterly Online Disclosures (Updation) For Developer

(i) The promoter shall upload the following updates on the webpage for the project, within 15 days from the expiry of each quarter:

(ii) list of number and types of apartments or plots, as the case may be, booked;

(iii) list of number of garages booked;

• status of the project:
  • status of construction of each building with photographs;
  • status of construction of each floor; and
  • status of construction of internal infrastructure and common areas with photographs.

 (iv) status of approvals:

(a) approval received;

(b) approvals applied and expected date of receipt;

(c)  approvals to be applied and date planned for application; and

(d) modifications, amendment or revisions, if any, issued by the competent authority with regard to any sanctioned plans, layout plans, specifications, license, permit or approval for the project.

Quarterly Online Disclosures (Updation) For Agent

• The Authority shall ensure that the following information shall be made available on its website in respect of each real estate agent registered with it or whose application for registration has been rejected or revoked:

1. For real estate agents registered with the Authority:

(i) registration number and the period of validity of  the registration of the real estate agent;

(ii) brief details of his enterprise including its name, registered address, type of enterprise (proprietorship, society, partnership, company etc.);

(iii) particulars of registration as proprietorship, society, partnership, company etc. including the bye-laws, memorandum of association, articles of association etc. as the case may  be;

• name, address, contact details and photograph of the real estate agent if he is an individual and the name, address, contact details and photograph of the partners, directors etc. in case of others;

• authenticated copy of the PAN card; and
• authenticated copy of the address proof of the place of business of the real estate agent and its other officials.

 2.  In case of applicants whose application for registration as a real estate agent have been rejected or real estate agents whose registration has been revoked by the Authority:

(i) registration number and the period of validity of the registration of the real estate agent;

(ii) brief details of his enterprise including its name, registered address, type of enterprise (proprietorship, society, partnership, company etc.); and

(iii) name, address, contact details and photograph of the real estate agent if he is an individual and the name, address, contact details and photograph of the partners, directors etc. in  case of others.

Allottees Approval- Requirements

• 2/3rd of the allottees (by number) shall consent to the changes.
• Obtain prior consent of allottees for making any addition, alteration to the approved and sanctioned plans.
• Even for any structural designs, specifications, amenities, building specifications, common areas.
• Transfer of promoter’s rights and liabilities to a third party.

Terms and conditions and the fine payable for compounding of offence (Rule 34)

• The court may compound any offence specified under section 70 on payment of amount as specified in the table given below :

RERA Address

Address : RAJASTHAN RERA Food Building, Secretariat Jaipur-302015 (Rajasthan) India 0141-5116782

[email protected], [email protected] , [email protected]

Website Link: http://rera.rajasthan.gov.in

♦ REAL ESTATE REGULATORY AUTHORITY

Nagar Niyojan Bhawan Near JDA, J.L.N. Marg Jaipur, PIN-302015 (Raj.)

♦ APPELLATE TRIBUNAL UNDER RERA

Room No.28, Swasthya Bhawan Behind Secretariat, C-Scheme Jaipur, PIN- 302005.