RERA: The New Real Estate Act- What should I know?
Qs: What is the purpose behind RERA?
Mandatory registration of real estate projects under the Act is one regulation which works towards protecting home buyer interest and safeguard them. Real Estate Act is an Act passed by the Parliament of India in March 2016 by the parliament and commenced on 1st May 2016.
Qs. Does the RERA apply to the whole of India?
Ans. Yes, except the state of Jammu and Kashmir.
Qs. When does the Act come into force?
Ans. March 26, 2015, is the date of official publication in Gazette of RERA.
|DATE OF COMING INTO FORCE||SECTIONS THAT CAME INTO FORCE|
|May 1, 2017||
Will be rolled out on the decided plan
Qs. RERA applies on what kind of projects?
Qs. What is the right of Promoter of the project for advertising the project?
Qs. What if my project is ongoing on the date of commencement of RERA and I have not issued a completion certificate, can I advertise my project?
Ans. The promoter would be required to apply for registration with RERA within three months of commencement of the Act. But for the projects developed beyond planning area but with requisite permission of local authority, the promoter may be directed to apply for registration and the rules and regulations under the Act may apply from the date of registration.
Qs. What will amount to the advertisement under the Act?
Ans. The advertisement means;
- Any document described or issued as advertisement through any medium
- Includes notice, circular or other documents or publicity in any form about the project
- Informing persons about the real estate project
- offering for sale of the plot, building, apartment
- Inviting persons to purchase in any manner-plot, building or apartment
- Even taking advance payment is not permissible
Qs. Who is Promoter of the project under section 2(zk) of the RERA?
Ans. The following is defined as Promoter of the project:
(a) a person who constructs or causes to be constructed an independent building or a building or building consisting of an apartment or converts the existing building or part thereof into an apartment for the purpose of selling all or some of the apartments including to his assignee.
(b) a person who develops the land into the project whether or not person constructs structures on plots for selling the plots with or without structures to all or some of the persons on the said projects.
(c) includes development authority or public body
(d) an apex state level cooperative housing finance society and a primary housing cooperative society
(e) any other person who claims to be a developer, builder, contractor, coloniser or by any other name it claims or by any other name or claim holding the power of attorney on behalf of the owner of the land, building, plot or apartment.
If the person who develops and sells are two different persons, then both of them would be treated as promoters for the purpose of the Act and shall be jointly liable.
Qs. Which of the projects do not require any registration under the RERA?
Ans. No registration of real estate projects is required in following circumstances:
(a) Where the land proposed to be developed is less than 500 square meters;
(b) Number of apartments to be developed does not exceed 8 inclusive of all phases;
(c) Where the promoter received completion certificate before the commencement of the Act;
(d) In cases of renovation, repair, re-development of the real estate project.
Qs. What are the documents required for registration of projects by Promoter under the New Act?
Ans. Every promoter shall make an application to the Authority for registration of the real estate project in such form, manner, within such time and accompanied by such fee as may be specified by the regulations made by the Authority along with following documents:
1. FAQs on RERA by Ministry of Housing and Urban Poverty Alleviation, Government of India
2. Gazette Notification of RERA
We are updating more information for our readers soon.