FAQ

What is RERA ?

The Real Estate Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 square metres, or eight apartments, to register with the Real Estate Regulatory Authority (RERA) for launching a project, in order to provide greater transparency in project-marketing and execution.

What is the meaning of RERA Act?

What are the objects and reasons for which the Real Estate (Regulation and Development) Act 2016 has been framed?

The Real Estate Act is intended to achieve the following objectives:

Ensure accountability towards allottees and protect their interest;
Infuse transparency, ensure fair-play and reduce frauds & delays
Introduce professionalism and pan India standardization
Establish symmetry of information between the promoter and allottee
Imposing certain responsibilities on both promoter and allottees
Establish regulatory oversight mechanism to enforce contracts
Establish fast- track dispute resolution mechanism
Promote good governance in the sector which in turn would create investor confidence.

If a real estate project has land area more than 500 sqmts but containing less than 8 apartments. Does it still need to be registered?

Ans. Yes. Every real estate project which has land area more than 500 sqmts or has more than 8 apartments needs to be registered.

If a real estate project has land area less than 500 sqmts but contains more than 8 apartments. Does it still need to be registered?

Ans. Yes. Every real estate project which has land area more than 500 sqmts or has more than 8 apartments needs to be registered

What are the penalties that a Real Estate Agent would face if he fails to adhere to the mandates prescribed by MahaRERA?

If any real estate agent fails to register and contravenes the provisions of section 9 or section 10 of the Act, he shall be liable to a penalty of ten thousand rupees for every day during which such default continues, which may cumulatively extend up to five per cent of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated as determined by MahaRERA.

Can promoter change the completion date for ongoing projects while registering?

Ans: Yes, while registering project, promoter needs to give revised date of completion which should be commensurate with the amount of development completed.

Who is the ‘promoter’ as per the Real Estate Law?

The Act covers all private and public bodies that develop real estate projects for sale. Therefore, the development authorities and housing boards are also in its fold. It also mentions, “where the person who constructs or converts a building into apartments or develops a plot for sale and the person who sells apartments or plots are different persons, both shall be deemed to be the promoters and shall be jointly liable as such for the functions and responsibilities specified, under this Act or the rules and regulations made thereunder”. Therefore, it stands true in cases where a joint development is in question.

What is the ‘escrow account’ and ‘separate account’?

Section 4(2)(l)(D) provides that the promoter shall maintain a ‘separate account’ for every project undertaken by him wherein seventy percent of the money received from the allottees shall be deposited for the purposes of land purchase and construction. The account has to be self-maintained and is not an escrow account requiring the approval of the Authority for withdrawal. Section 4(2)(l)(D) clearly provides that the funds can only be used for construction and land cost.

What is the punishment prescribed for non-compliance of the orders of the Appellate Tribunal by the promoter?

Ans-As per section 64 if the promoter fails to comply with the orders of the Appellate Tribunal, he shall be liable to a penalty for every day of default, which may cumulative extend up to ten percent of the estimated cost of the real estate project or with imprisonment for a term which may extend up to three years or with both.

What is the punishment prescribed for non-compliance of the orders of the Appellate Tribunal by the allottee?

As per section 68, if the allottee fails to comply with the orders of the Appellate Tribunal, he shall be liable to a penalty for every day of default, which may cumulative extend up to ten percent of the cost of the plot/apartment or with imprisonment for a term which may extend up to one year or with both.

What all information is required to submitted by promoter to the authority?

Following are the details required to be submitted by promoter:

Brief details of the enterprise
Brief details of projects launched by him in the past five years whether already completed or being developed, including current status of said projects, any delay in its completion, details of cases pending, details of type of land and payments pending.
Authenticated copy of approvals and commencement certificate from competent authority for real estate project mentioned in application.
The sanctioned plan, layout plan and specifications of the proposed project
The plan of development works to be executed in the proposed project and the proposed facilities to be provided including firefighting facilities, drinking water facilities, emergency evacuation services, use of renewable energy.
The location details of the project, with clear demarcation of land dedicated for the project along with its boundaries including the latitude and longitude of the end points of the project.
Performa of the allotment letter, agreement for sale, and the conveyance deed proposed to be signed with the allottees;
Tthe number, type and the carpet area of apartments for sale in the project along with the area of the exclusive balcony or veranda areas and the exclusive open terrace areas apartment with the apartment .
The number and areas of garage for sale in the project
The names and addresses of his real estate agents, if any, for the proposed project
The names and addresses of the contractors, architect, structural engineer, if any and other persons concerned with the development of the proposed project.
Declaration, supported by an affidavit, which shall be signed by promoter or any person authorised by promoter

What is the meaning of occupancy certificate?

A certificate of occupancy is a document issued by a local government agency or building department certifying a building's compliance with applicable building codes and other laws, and indicating it to be in a condition suitable for occupancy. ... a new building is constructed.

What is completion certificate – CC?

A completion certification (CC) is a critical and mandatory legal document that a builder should obtain from the municipal authorities after the completion of a building.

What is plinth area and carpet area?

Carpet area means the area of the property where you can lay your carpet, measured wall to wall. ... Built-Up Area and Plinth Area is total covered area of the apartment or commercial property unit. It can be calculated by adding areas of utility ducts within property unit, internal and external walls to the carpet are.