MREARA

1. GF’s Gharda Institute of Technology , Lavel
Dept. of Civil Engineering
 Resource Person: Prof.V.R.Kasar,
ME Civil, Member of Institute of
Engineers
 Key Points of Expert Lecture:
1) Overview Of Real Estate
2) Basic Laws in Real Estate Sector
3) Terminologies in Laws
4) Application Conditions of Law
5) Registration Process of Project
Under M-RERA 2016
Expert Lecture on : M-RERA 2016 on
Engineers Day Celebration 16 Sept. 2019
Co-ordinated by HOD Principal
Prof.V.S.Jadhav & CASTLE Team Dr.S.K.Patil Dr.P.S.Joshi
Audience: Civil Engineering
Students
Venue: TE Civil Classroom
Date: 16 Sept. 2019 at 4.00 pm.

2. By-
Er. V.R.KASAR
ME Civil, MIE

3. Why this Act is Required?
 Highly unregulated sectors in
spite of many laws.
 Lack of transparency in
projects
 No proper information about
the builder
 Lack of Easy and Quick
Redressal
 Possession not given in time.
 Do not provide OC and
Completion Certificate
 Demand Additional amount
in cash
 Do not Form the Societies or
give conveyance.
 Do not provide with all the
agreed amenities.
 NO accounts are provided for
maintenance
 Parking and open spaces are
sold
 Fraud, cheating by
unscrupulous builders
 Approved Plans, title deed
not proved.
 Flat areas are sold at Super
Built up etc.

4. RERA 2016

5. Intro: The Real Estate (Regulation and Development)
Act, 2016
 RERDA-2016 is an Act of the Parliament of India Applicable to
whole of India except Jammu and Kashmir
 The bill was passed by the Rajya Sabha on 10th March, 2016, by
the Lok Sabha on 15-03-2016 & Notified on 26-03-2016
 Came into force :1 May 2016 with 69 of 92 sections notified.
 The Central and state Govt to notify the Rules in six months and
Establish the Real Estate Authority &Appellate Tribunal in 1 yr.
 Regulator: RERA- To register RE projects, RE Agents, Monitor,
supervise, redress disputes, Control & protect all stakeholders.
 The law is not Retrospective but applicable to all on going
projects and new projects- Commercial, residential, plotting etc..

8. What is the Nature of RERA?
RERA is a Central Act with some authority delegated to State
Governments

12. DEVELOPMENT) ACT , 2016
Objects of the Real Estate(R &D)
Act, 2016

14. THE SALIENT FEATURES OF THE
RERDA2016
 To Establish a Regulator :
by Appropriate Govt:
 ‐ For each State by
respective State Govt
 ‐ For Union Territories by
Central Govt
 Accreditation : By
Mandatory registration of :
 ‐Real Estate Projects by
Promoters &
 ‐ Real Estate Agents
 Mandatory public
disclosure norms :
 ‐ Details of developer,
 ‐ Details of the project,
 ‐ land status ,
 ‐ statutory approvals and
 ‐ contractual obligations;

15. THE SALIENT FEATURES OF THE
RERDA2016
 Obligations of
promoters :
 Register the project with
the authority before sale.
 Adhere to approved plans
& project specifications,
 Publish complete details
of projects on website.
 Deposit 70% of funds in a
separate bank account, to
be used for that real
estate project only after
certifying by CA,Engr
and Arch.
- to refund moneys in cases
of default;
- Update website with
quarterly information on
sale and progress
- Get the accounts Audited
by CA within 6 months.
 Register the Agreement
on receipt of 10% of
amount
 Submit all the inform
about project from time
to time to RERA.

16. RERDA 2016
Chapter I : Preliminary
Chapter II : Registration Of Real
Estate Project And Registration Of
Real Estate Agents
Chapter III : Functions And Duties
Of Promoter
Chapter IV : Rights And Duties Of
Allottees
Chapter V: The Real Estate
Regulatory Authority
Chapter VI : Central Advisory
Council
Chapter VII : The Real Estate
Appellate Tribunal
Chapter VIII : Offences, Penalties
And Adjudication
Chapter IX : Finance, Accounts,
Audits And Reports
Chapter X : Miscellaneous

17. I SEC. 2 DEFINITIONS
 "real estate project" means :
 ‐ the development of a building or a building
consisting of apartments, or
 ‐ converting an existing building or a part thereof into
apartments, or
 ‐ the development of land into plots or apartment, as
the case may be,
 ‐ for the purpose of selling all or some of the said
apartments or plots or building, as the case may be,
 ‐ and includes the common areas, the development
works, all improvements and structures thereon,
 ‐ And all easement, rights and appurtenance belonging
thereto;

18. 2(d) "allottee"
 in relation to a real estate project, means :
 ‐ the person to whom a plot, apartment or buildings, as
the case may be, ‐ has been allotted,
 ‐ sold (whether as freehold or leasehold) or
 ‐ otherwise transferred by the promoter, and
 ‐ includes the person who subsequently acquires the said
allotment through sale, transfer or otherwise
 ‐ but does not include a person to whom such plot,
apartment or buildings, as the case may be, is given
on rent;

19. As per MAH.RULE 10(2)
AGREEMENT FOR SALE
 Any application 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, plot or building, as the case may
be,
 ‐ shall not be construed to limit the rights and interests
of the allottee
 ‐ under the agreement for sale under the Act
 ‐ or the rules or the regulations made thereunder

20. "real estate agent" means any
person:-
 who negotiates or acts on behalf of one person in a
transaction of transfer of his plot, apartment or
building,
 as the case may be, in a real estate project, by way of
sale, with another person or transfer of plot, apartment
or building,
 as the case may be, of any other person to him and
receives remuneration or fees or any other charges for
his services whether as commission or otherwise and
includes a person who introduces, through any medium,
prospective buyers and sellers to each other for
negotiation for sale or purchase of plot, apartment or
building, as the case may be, and includes property
dealers, brokers, middlemen by whatever name called;

21. CHAPTER II
REGISTRATION OF REAL ESTATE PROJECT AND
REGISTRATION OF REAL ESTATE AGENTS
 Prior registration of real estate project with Real Estate
Regulatory Authority.
 Application for registration of real estate project.
 Grant of registration.‐Within 30 days
 Extension of registration.
 Revocation of registration. – On default
 Obligation of Authority consequent upon lapse of or on
revocation of registration.
 Registration of real estate agents.
 Functions of real estate agents.

22.  Functions and duties of promoter.
 Obligations of promoter regarding veracity of
advertisement or prospectus.
 No deposit or advance to be taken by promoter without
first entering into agreement for sale.
 Adherence to sanctioned plans and project
specifications by the promoter.
 Obligations of promoter in case of transfer of a real
estate project to a third party.
 Obligations of promoter regarding insurance of real
estate project.
 Transfer of title.
 Return of amount and compensation.

24. Summary of Key Definitions required for
understanding the Act

25. Definition: Carpet Area
Carpet Area means “Net Usable Area of the Apartment”
 Carpet Area : INCLUDES-Area covered by the internal partition walls
of the apartment
 Carpet Area: EXCLUDES Area covered by the external walls Areas
under services shafts
 Exclusive balcony or verandah area(See Note 1 below)
 Exclusive open terrace area(See Note 2 below)
 Note 1:“Exclusive balcony or verandah area”:Means the area of the
balcony or verandah, as the case may be, which is appurtenant to the net
usable floor area of an apartment, meant for the exclusive use of the
allotee
 Note 2: “Exclusive open terrace area”:
 Means the area of open terrace which is appurtenant to the net usable floor
area of an apartment, meant for the exclusive use of the allotee

26. Definition: Advertisement
Wide definition to cover all communications
Definition: Sanctioned Plan All Plans and permissions sanctioned by
Competent Authority till start of Project

27. Definition: Interest
Interest payable by Promoter form date of receiving
amount

28. Developer and Seller both become
Promoters

29. Registration of the Real Estate
Project
Ensure that every Project is registered before launch in any manner

30. Register projects not having Completion Certificate when Act
comes into force

31. Application for Registration Promoter to
also keep updated details on his Page on Website of Authority

32. Revocation of Registration
Authority has wide powers including Suo-Moto revocation

33. Apartment
Has a wide scope and includes all communication related to Project

34. Booking & Sales
Booking is a critical stage: Allottees get all rights under the Act

35. Allottee : Rights
All provision of RERA are applicable when a person becomes an Allottee

36. Allottee : Duties
Allottee can also get penalised or imprisonment for not following Orders

37. Construction of Project &
Alteration of Plans
Understand nature of consent for addition/alteration

38. Cost of the Real Estate Project
What will be included in the Cost for purpose of withdrawal from Separate
Account?
 Why is understanding Cost of the Real Estate Project critical?
 Promoter can withdraw amounts from the Separate Account
in which 70% from collection from allotees is deposited only to

39. Utilization of 70% deposited in
Separate Account Planning for withdrawal

40. Estate Project
Utilization of 70% for Interest and Repayment

41. Cancellation of Agreement
Cancellation Clauses of Booking & Agreement need to drafted
carefully

42. Possession & Maintenance

43. Formation of Society &
Conveyance

44. Filing of Complaints

45. Authority & Tribunal
Penalty for contravention can also include imprisonment

46. Court can be transferred
In addition to Penalty to Authority, Compensation is to be paid
to the allottee

47. Real Estate Agents

48. RERA : Impact on Cost
Key Provisions which will impact Cost of Project

49. Preparing for RERA
Key Activities for Developers before commencement of RERA

50. Introduction to
MahaRERA2017
 MahaRERA has notified the following regulations
 1.Maharashtra Real Estate Regulatory Authority (General) Regulations 2017
 2.Maharashtra Real Estate Regulatory Authority (Recruitment and Conditions of
Service of Employees) Regulations, 2017
 MahaRERA has also promulgated the following order
 1.Charges to be paid to Mahaonline for MahaRERA website(* Taxes and Bank
Charges shall be charged extra on actual basis)

51. Key Components
The key components of Real Estate(Regulation and
Development) Act, 2016 areas follows:

52. Real Estate Projects Registration
 Registration Mode : Online through MahaRERA portal
which shall go-live on 1stMay 2017.
 Fees:Rs. 10 per sq. m of Land Area, subject to minimum Rs
50,000 and maximum Rs. 10 lakhsonly. The mode of
payment is NEFT or RTGS System or any other digital
transaction mode.
Process Flow: