Table of Contents
Sr
Sr.
No. Particulars of contents From To
1 Objects and reasons for which RERDA has 3 3
been introduced
2 Chapters and Sections of RERDA 4 4
3 Relevant
R l sections
i d
dealing
li with
ihFFunctions
i and
d 5 5
Obligations of a Promoter
4 Rights and Duties of Allottees 6 6
5 Dates of coming into force of various sections 7 7
of the Act
6 Definitions 9 45
7 Prior registration of a real estate project with 47 53
RERA
Sr
Sr.
No. Particulars of contents From To
8 Registration
g requirements
q 55 85
9 Grant of registration, extension and revocation 86 92
thereof
10 Obligation of Authority consequent to lapse or 93 94
revocation of registration
11 Provisions of Separate Account 96 120
12 Functions and Obligations of Promoter 122 169
13 Rights and Duties of Allottees 171 180
14 Real Estate Agents Registration 181 187
requirements, functions & duties
I Preliminary 1 to 2
X Miscellaneous 79 to 92
17 Transfer of Title
Various provisions of the Act have come into force on different dates notified by the
Central Government in the Official Gazette. Certain provisions of the Act became
p
operational on 1.5.2016.
The dates on which the provisions have become operational are as under
Effective 1.5.2016 Effective 1.5.2017
Section 2 Sections 3 to 19
Sections 20 to 39 Section 40
Sections 41 to 58 Sections 59 to 70
Sections 71 to 78 Sections 79 to 80
Sections 81 to 92
S ti 2(c)
Section 2( ) : Agreement
A t for
f sale
l
"carpet area" means the net usable floor area of an apartment, excluding
the area covered by the external walls,
walls areas under services shafts,
shafts
exclusive balcony or verandah area and exclusive open terrace area, but
includes the area covered by
y the internal p
partition walls of the apartment.
p
(i) the entire land for the real estate project or where the project is
developed in phases and registration under this Act is sought
for a phase, the entire land for that phase;
((ii)) the stair cases,, lifts,, staircase and lift lobbies,, fire escapes,
p , and
common entrances and exits of buildings;
(iv) the premises for the lodging of persons employed for the management
of the property including accommodation for watch and ward staffs or
for the lodging of community service personnel;
(v) installations of central services such as electricity, gas, water and
sanitation,, air-conditioning
g and incinerating,
g, system
y for water
conservation and renewable energy;
(vi) the water tanks, sumps (sic pumps), motors, fans, compressors, ducts
and all apparatus connected with installations for common use;
(vii) all community and commercial facilities as provided in the real estate
project;
(viii) all other portion of the project necessary or convenient for its
maintenance, safety, etc., and in common use;
((ii)) a development
p authority
y or any
yppublic authority
y established by
y
the Government in this behalf under any law for the time being
in force;
"promoter" means -
(ii) a person who develops land into a project, whether or not the
person also constructs structures on any of the plots, for the
purpose of selling to other persons all or some of the plots in
the said project, whether with or without structures thereon; or
Jagdish T Punjabi June 10, 2017 32
Section 2(zk) : Promoter
Section 2(zk) : Promoter
((v)) any
y other p
person who acts himself as a builder,, coloniser,,
contractor, developer, estate developer or by any other name or
g as the holder of a p
claims to be acting y from the
power of attorney
owner of the land on which the building or apartment is
constructed or plot is developed for sale; or
(vi) such other person who constructs any building or apartment for
sale to the general public.
public
words and expressions used herein but not defined in this Act
and defined in any law for the time being in force or in the
municipal laws or such other relevant laws of the appropriate
Government shall have the same meanings respectively
assigned to them in those laws.
If a real estate project has land area more than 500 sq. mts. but
containing less than 8 apartments. Does it still need to be
registered?
Answer: Yes. Every real estate project which has land area
more than 500 sq. mts. or has more than 8 apartments needs
to be registered.
If a real estate project has land area less than 500 sq. mts. but
contains more than 8 apartments. Does it still need to be
registered.
registered
Answer: Yes. Every real estate project which has land area
more than 500 sq. mts. or has more than 8 apartments needs
to be registered.
Grant of registration S. 5
Extension of registration S. 6
Revocation of registration S. 7
P
Provisions
i i regarding
di Separate
S t Account
A t
The total estimated cost of the project multiplied by such proportion shall
d t
determine
i the
th maximum
i amountt which
hi h can be
b withdrawn
ithd b the
by th promoter
t
from the separate account.
For withdrawing the amount from the separate account maintained by the
promoter with the scheduled bank, the promoter shall submit each of the
above mentioned 3 certificates to the scheduled bank operating the
separate account.
The promoter shall be required to follow the above procedure at the time of
every withdrawal from the separate account till occupancy certificate in
respect of the project is obtained.
((ii)) Premium p
payable
y to obtain development
p or redevelopment
p rights;
g ;
(iv) Premium for grant of FSI, including additional FSI (if any), fungible FSI;
and any other instruments permissible under the Development Control
Regulations;
Definition of co-promoter
per order dated 11th May,
As p y, 2017 issued byy MahaRERA,, in such
scenarios, the sale proceeds to these individuals / organisations should
not be considered as cost of p
project
j and withdrawn from the designated
g
bank account merely by virtue of this arrangement. For the purpose of
g
withdrawal from the designated Bank Account, these individuals /
organizations should be considered as Promoters and hence shall be
termed as Co-Promoters.
As per the said order dated 11th May, 2017, the arrangement or
agreement of Co-Promoter with Promoter should clearly detail the share
of Co-Promoter(s) and a copy of the said arrangement or agreement
should be uploaded on the MahaRERA portal, at the time of registration,
along with other details of the Co-Promoter(s).
Jagdish T Punjabi June 10, 2017 110
Definition of co-promoter
Co-Promoters
Such Co Promoters / Individuals / Organisation should submit a
declaration in Form B of MahaRERA (Regulation and
Development)(Registration of Real Estate Project,
Project Registration of
Real Estate Agents, Rates of Interest and Disclosures on Website)
Rules,
Rules 2017.
2017
Each of the Co-Promoters / Individuals /Organisation, entitled to
developed should open separate bank
share of the total area developed,
account for deposit of 70% of the sale proceeds realized from the
allottees.
allottees
Definition of co-promoter
In exercise of the powers vested in MahaRERA under Regulation No. 38 of
M h ht Real
Maharashtra R l Estate
E t t Regulatory
R l t A th it (General)
Authority (G l) Regulations,
R l ti 2017 the
2017, th
th
Office Order No. Maha-RERA/LA/32/2017 dated 11 May, 2017 notifies the
definition of the term `co-promoter as follows
co promoter
co-promoter means and includes any person(s) or
organization(s) who, under any agreement or arrangement
with the promoter of a Real Estate Project is allotted or
entitled to a share of total revenue generated from sale of
apartments or shares of the total area developed in the real
estate project. The liabilities of such Co-Promoters shall be
as per the agreement or arrangement with the Promoters,
however, for withdrawal from designated Bank Account, they
shall be at par with the Promoter of the Real Estate Project.
Jagdish T Punjabi June 10, 2017 112
Withdrawal of funds - % of completion
Particulars
T t l sale
Total l consideration
id ti as per sale
l agreements
t executed
t d R 400 lakh
Rs. l kh
The promoter shall 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
practice,
and signed by such chartered accountant. It shall be verified
during
d i theth audit
dit that
th t the
th amounts
t collected
ll t d for
f a particular
ti l project
j t
have been utilized for the project and the withdrawal has been in
compliance with the proportion to the percentage of completion of
the project.
The annual report on the statement of accounts shall be in Form
5 duly certified and signed by the chartered accountant who is the
statutory auditor of the promoters enterprise.
Jagdish T Punjabi June 10, 2017 116
Points worth noting
Cost of Construction as defined in Explanation
p III includes `principal
p p sum
and interest to , how can principal sum of loan be regarded as a cost
of construction. Will this not amount to including the same amount twice
once as a component of cost incurred and second time as principal sum.
(d) quarterly up-to-date the list of approvals taken and the approvals
which are pending subsequent to commencement certificate;
(3) The promoter at the time of the booking and issue of allotment letter
shall be responsible to make available to the allottee, the following
information, namely :
Section 11
(b) be responsible to obtain the completion certificate or the
occupancy certificate,
certificate or both,
both as applicable,
applicable from the relevant
competent authority as per local laws or other laws for the time
being in force and to make it available to the allottees individually
or to the association of allottees, as the case may be;
(c) be responsible to obtain the lease certificate,
certificate where the real
estate project is developed on a leasehold land, specifying the
period of lease,
lease and certifying that all dues and charges in regard
to the leasehold land has been paid, and to make the lease
certificate
tifi t available
il bl to
t the
th association
i ti off allottees;
ll tt
Section 11
(d) be responsible for providing and maintaining the essential
services on reasonable charges,
services, charges till the taking over of the
maintenance of the project by the association of the allottees;
Section 11
Rule 9(1) of the Rules states that the promoter shall enable formation
of legal entity like co-operative society, company, association,
federation,
federation etc.
etc under s.
s 11(4)(e).
11(4)(e)
In case of failure of the promoter to form the legal entity, the Authority
may by an order direct the Promoter to apply for formation of such legal
entity or may authorise the allottees to apply for formation of such legal
entity.
Jagdish T Punjabi June 10, 2017 133
Section 11
Section 11
(h) after he executes an agreement for sale for any apartment, plot
or building, as the case may be, not mortgage or create a charge
on such apartment, plot or building, as the case may be, and if
any such mortgage or charge is made or created then
g anything
notwithstanding y g contained in any
y other law for the time
being in force, it shall not affect the right and interest of the
allottee who has taken or agreed
g to take such apartment,
p ,pplot or
building, as the case may be;
Section 11
(5) The promoter may cancel the allotment only in terms of the
agreement for sale:
Provided that the allottee may approach the Authority for relief, if
he is aggrieved by such cancellation and such cancellation is not
in accordance with the terms of the agreement for sale, unilateral
and without any sufficient cause.
cause
(6) The promoter shall prepare and maintain all such other details as
may be specified, from time to time, by regulations made by the
A th it
Authority.
Conditions to be satisfied -
1 the
th person has
h made d an advance
d or deposit;
d it
2 such advance or deposit has been made on the basis of
i) information contained in the notice, advertisement or
prospectus; or
ii) any model apartment, plot or building;
3 such person has sustained a loss or damage;
4 the loss or damage is by reason of any incorrect, false
statement included therein
Rights and interests of the allottee under the agreement for sale
under the Act or the rules or the regulations made there under
cannot be limited by virtue of any application letter,
letter allotment letter
or any other document signed by the allottee, in respect of the
apartment, plot or building, prior to the execution and registration of
the agreement for sale for such apartment,
apartment plot or building,
building as the
case may be [Rule 10(2)]
Jagdish T Punjabi June 10, 2017 143
((ii)) pending
p g obligations
g as p
per the agreement
g for sale entered
into by the erstwhile promoter with the allottees.
(i) within the time period agreed upon for conveying the title of
the promoter of that building or a wing of that building to the legal
entity of the allottees.
(ii) in case no time period is agreed upon for conveying the title of
the promoter in respect of the entire undivided or inseparable land
underneath all buildings / wings along with structures of basements
and Podiums constructed in a Layout, the promoter shall execute
the conveyance of the entire undivided or inseparable land
underneath all buildings jointly or otherwise by earlier of the
following dates
(i) 3 months from the date of issue of occupancy certificate to the
last of the building or wing in the layout; or
(ii) 3 months from the date on which the Apex Body or Federation
or Holding
g Company
p y is registered
g or,, as the case may
y be,, the
association of allottees is duly constituted.
Jagdish T Punjabi June 10, 2017 162
Section 17 :
If the promoter fails to convey the title in accordance with Rule 9(2),
in favor of co-operative society or company or association or
Federation as the case may be,
Federation, be the Authority shall by an order
direct the Promoter to convey the title in favor of such legal entity
[Rule 9(3)].
9(3)]
Further,
Further in such case,
case the Promoter shall be permitted the entry of
premises of the building and common areas to also discharge his
s 14(3) [second proviso to Rule 9(4)].
obligations under s. 9(4)]
Liability
y of the p
promoter to return amount with interest
and also pay compensation -Section 18
U
Upon occurrence off the
th following,
f ll i th allottee
the ll tt may withdraw
ithd
from the project and the promoter shall be liable to return to
the allottee the amount received by him in respect of that
apartment, plot or building, as the case may be, with interest at
such rate as may be prescribed in this behalf including
compensation
p in the manner p
provided under this Act.
(1) to make necessary payments in the manner and within the time
as spec ed in tthe
specified e sa d ag
said ee e t for
agreement o sa ea
sale ds
and a pay at tthe
shall e
proper time and place, the share of the registration charges,
municipal taxes, water and electricity charges, maintenance
charges, ground rent, and other charges, if any;
(2) to pay interest, at such rate as may be prescribed, for any delay
in payment towards any amount or charges to be paid under
sub-section (6).
The real estate agent, upon being engaged by the promoter under s.
4(2)(f) for a real estate project shall maintain and preserve books of
account,
account records and documents separately for each such real
estate project.
The registration granted shall be for valid for a period of five years.
years
The public authorities established under Special Local Laws which
may sell Apartments or Buildings or Plot under any real estate
project through Public Lottery as per their Rules or Regulations shall
not be required to be registered as real estate agents.
agents
The registration granted shall be valid for the State.
The real estate agent shall provide assistance to enable the allottee
and the promoter of each real estate project, to exercise their
respective rights and fulfil their respective obligations at the time of
marketing and selling, purchase and sale of any plot, apartment or
building as the case may be and not involve himself in any unfair
building,
trade practices, namely : -