Applicability of RERA registration / Exemption of Real Estate Project and Real Estate Agent
Section 3 & 9 of RERA (Real Estate Regulation and Development Act, 2016)
Conditions for Registration / Exemption under RERA
1. The area of land proposed to be developed <= 500 sq meters(5382 sqft)
2. The no. of apartments proposed to be developed <= 8 inclusive of all phases. [Govt. may reduce the threshold limit for exemption from registration under this Act for supra points].
3. The promoter has received completion certificate(CC) for a real estate project prior to commencement of this Act.
4. The project is 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 under the project.
5. If the project is to be developed in phases, every such phase shall be considered a stand alone real estate project,and the promoter shall obtain registration under this Act for each phase separately.
6. If the Authority thinks necessary in the interest of allottees for projects being developed beyond the Planning Area, may by order, direct the promoter of such project to register with the Authority and all the provisions of this Act, rules or regulations made there under shall apply to such projects from that stage of registration.
No real estate agent shall facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, in a project or part of it, being the part of the project registered u/s 3, being sold by the promoter in any planning area, without obtaining registration u/s 9.
Note;
1. As per the RERA provision, only the project which is incomplete / >500 sqmtr area of land to be developed etc is required to get registration.
2. Only the agent who is engaged in selling / purchasing of properties is required to be registered under RERA, Real estate agents include the likes of property dealers, brokers, middlemen etc.
3. Leasing consultants may not be required to get registration as they facilitate to lease /let out only and not involved in ownership transfer of the properties like real estate agent.
Compiled by CA. M.S.Prasad, FCA, MBA, LL.B, B.Com(H),
+91 88022 53937, 0120-713 8235, camsprasad@gmail.com
Disclaimer: This insight is meant for informational purpose only and should not be considered as an advice or opinion, or otherwise, whatsoever. Author does not intend to advertise its services through this insight, and not responsible for any error or omission in this insight or for any action taken based on its contents.
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A Person or a Landlord constructs block of flats after getting sanctions from the planning authority, completes the construction, obtains occupancy certificate from the authority. Now he feels that he doesnot want to stay there and decides to sale all the flats which are more than 8. Whether he will have to register his project with the RERA ?
hello, where a project has 20 floors and no sale as per SEZ approval and in that case where there is no sale happening is RERA required. the builder/developer has leased the preimses to MNC cos.as there there is no sale RERA technically should not applicable. is that written law anywhere ??
I am planning to buy a 2 bhk flat in pune gramin, which is having total five floors. When asked about RERA AND Na, as per builder it is not applicable for rural area. Once it covers under corporation building needs to pay tax and there will be no inconvenience to us. Please suggest is there any risk
I have purchase a flat (on 10th Floor) in Pune Rural area in 2014 where i got furniture based possession in 2016 but still many things like allotment of Parking area,Completion letter (occupancy letter), Grampanchyat Registration, fire fighting equipment not yet installed,Operation of Lift are still to be completed… Builder got registration RERA registration for 3rd faze and for rest of Common Amenities. My query is whether my flat also covered under MAHARERA act ? Should i eligible for Compensation for delay in possession (Occupancy Letter) ?What is the builders/promoters liability and accountability in this case? can builder collect maintenance charges in this case ?
OFFHAND
“5. If the project is to be developed in phases, every such phase shall be considered a stand alone real estate project,and the promoter shall obtain registration under this Act for each phase separately.”
It has been already pointed out (ref. Pr Posts) that a phasewise completion, though permitted, in theory, under the RERA Act/ the Rules, could be objected to by the Buyers; that is in a case in which such partial completion does not cover the UDI and all the common facilities (e.g. swimming pool) as appended thereto , as agreed.
Any thoughts !