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CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
LAKSHMINARAYANAN ALAGURAJA
ADVOCATE
Real Estate (Regulation and
Development) Act, 2016
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Introduction
The Real Estate (Regulation and Development) Act,
2016 is an Act of the Parliament of India which seeks to
protect home-buyers as well as help boost investments
in the real estate industry.
The bill was passed by the Rajya Sabha on 10 March
2016 and by the Lok Sabha on 15 March 2016. The Act
came into force from 1 May 2016 with 59 of 92 sections
notified. Remaining provisions will come into force from
1 May 2017.
The Central and state governments are liable to notify
the Rules under the Act within a statutory period of six
months.
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
INDEX
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
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
INDEX
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
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Need for a regulatory law for the real
estate sector
The real estate sector has grown in the
recent years but has largely been
unregulated from the perspective of
consumer protection. Though,
consumer protection laws are available,
the recourse available therein are only
curative, but not preventive. This has
affected the overall potential growth of
the sector due to absence of
professionalism and standardization.
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
OBJECTS AND REASONS
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.
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Registration
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. For on-going projects
which have not received completion certificate on
the date of commencement of the Act, will have to
seek registration within 3 months. Application for
registration must be either approved or rejected
within a period of 30 days from the date of
application by the RERA.
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Registration
On successful registration, the promoter of the
project will be provided with a registration number,
a login id and password for the applicants to fill up
essential details on the website of the RERA. For
failure to register, a penalty of up to 10 percent of
the project cost or three years' imprisonment may
be imposed. Real estate agents who facilitate selling
or purchase of properties must take prior
registration from RERA. Such agents will be issued a
single registration number for each State or Union
Territory, which must be quoted by the agent in
every sale facilitated by him.
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Protection of buyers
The Act prohibits unaccounted money from
being pumped into the sector and as of now
70 per cent of the money has to be deposited
in bank accounts through cheques. A major
benefit for consumers included in the Act is
that builders will have to quote prices based
on carpet area and not super built-up area,
while carpet area has been clearly defined in
the Act to include usable spaces like kitchen
and toilets.
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Rights and duties of the allottees
Section 19 provides for the various rights of
the allottees. This section specifies various
rights which the allottees have against the
promoters including those which the
promoters are liable to fulfill based on the
agreement entered into with the allottees,
namely – stagewise schedule of completion
of the project and the services, claim timely
possession of the apartment / plot,
entitlement to necessary documents and
plans etc.
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Rights and duties of the allottees
Section 20 provides for the various
duties of the allottees, which provide
for matters relating to payment
regarding the apartment / plot, liability
towards interest for delay in payment,
responsibility to take possession,
participate in formation of association
etc.
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Real Estate Regulatory Authority and
Appellate Tribunal
It will help establish state-level Real Estate
Regulatory Authorities (RERAs) to regulate
transactions related to both residential and
commercial projects and ensure their timely
completion and handover. Appellate
Tribunals will now be required to adjudicate
cases in 60 days as against the earlier
provision of 90 days and Regulatory
Authorities to dispose of complaints in 60
days while no time frame was indicated in
earlier Bill.
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Regulatory Authority
As per section 20 the Regulatory Authority is
required to be established within 1 year of
the commencement of the said section. As
section 20 has been notified with effect from
1st May, 2016, the Authority is required to be
established maximum by 30th April, 2017.
However, for speedy implementation of the
Act, section 20 empowers the ‘appropriate
Government’ to appoint an interim
Regulatory Authority, until the establishment
of the full time Authority.
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Appellate Tribunal
As per section 43 of the Act, the Appellate
Tribunal is required to be established within
1 year of the commencement of section 43.
As section 43 has been notified with effect
from 1st May, 2016, the Appellate Tribunal is
required to be established maximum by 30th
April, 2017. However, for speedy
implementation of the Act, section 43
empowers the ‘appropriate Government’ to
designate an existing Appellate Tribunal
(under any other law in force) to function as
an Appellate Tribunal under the Act.
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
RERA Rules
The Act under Section 84 contemplates that within 6 months of
the RERA Act being enforced, State Governments shall make
rules for carrying out the provisions of the Act. The said Rules
are to be notified by the respective State Government.
As late as October 31, 2016, Central Government, released the
Real Estate (Regulation and Development) (General) Rules,
2016, vide Notification by the Ministry of Housing & Urban
Population (HUPA). The Rules so issued by the Central
Government are applicable to the five Union Territories
without Legislature viz., Andaman & Nicobar Islands, Dadra &
Nagar Haveli, Daman & Diu, Lakshadweep and Chandigarh. The
Rules have been issued after prior release of Draft for
comments.
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
RERA Rules
For Delhi, the Ministry of Urban Development is in
the process of finalisation of rules while the state
governments have to notify the rules on their own.
States like Maharashtra, Andhra Pradesh, Karnataka
and Tamil Nadu lag behind in implementation of the
Rules, with their Rules still not notified. They are,
however, at the advanced stages of finalising the
Rules. Maharashtra and West Bengal has issued
Rules for consultation also.
Uttar Pradesh is the one of the first States to publish
Rules for its respective State.
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Modification to the Project
As per section 14 of the Act the promoter can only
modify / amend the sanctioned plans or project
specifications, after the approval of the competent
authority and its disclosure to the allottees, in case of
minor additions or alterations. However, in case of
major modification / alteration, the promoter can
modify the sanctioned plans or project specification
only after having taken approval from two-third of
the allottees. In addition, for arriving at the number
of two-third allottees, the number of apartments
held by the promoter will be excluded. Also,
irrespective of the number of apartments held by an
allottee he/she shall only be entitled to one vote.
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Structural Defect
As per section 14(2) the promoter shall
be liable for 5 years form the date of
handing over of possession to the
allottee towards structural defect or
any other defect as specified therein.
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Transfer of Title
Section 17 of the Act provides for
detailed provisions regarding transfer
of title of the apartment and the
project to the allottee and to the
association of the allottees
respectively.
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
My Opinion
1. Life span of an Apartment / building.
2. Materials used – can be covered in
AOS.
3. Real Estate Agent Commission.
4. Corpus Fund/Maintenance Fee.
CHENNAI
C2-A, Industrial Estate,
Guindy, Chennai,
Tamil Nadu 600032
Tel: +91 - 44 - 22501318
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 65462400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Flat No. A-701,
Brindavan Apartments,
Niloufer Hospital Road,
Redhills, Hyderabad - 500034.
Tel: +91 - 40 - 60506009
COCHIN
Suite 49, 8th Floor, Centre A,
Alapatt Heritage Building,
MG Road, Cochin – 682035
Tel: +91 - 484 - 6506216
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Thanks for your
Patience

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  • 1. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com LAKSHMINARAYANAN ALAGURAJA ADVOCATE Real Estate (Regulation and Development) Act, 2016
  • 2. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Introduction The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry. The bill was passed by the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016. The Act came into force from 1 May 2016 with 59 of 92 sections notified. Remaining provisions will come into force from 1 May 2017. The Central and state governments are liable to notify the Rules under the Act within a statutory period of six months.
  • 3. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com INDEX 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
  • 4. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com INDEX 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
  • 5. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Need for a regulatory law for the real estate sector The real estate sector has grown in the recent years but has largely been unregulated from the perspective of consumer protection. Though, consumer protection laws are available, the recourse available therein are only curative, but not preventive. This has affected the overall potential growth of the sector due to absence of professionalism and standardization.
  • 6. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com OBJECTS AND REASONS 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.
  • 7. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Registration 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. For on-going projects which have not received completion certificate on the date of commencement of the Act, will have to seek registration within 3 months. Application for registration must be either approved or rejected within a period of 30 days from the date of application by the RERA.
  • 8. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Registration On successful registration, the promoter of the project will be provided with a registration number, a login id and password for the applicants to fill up essential details on the website of the RERA. For failure to register, a penalty of up to 10 percent of the project cost or three years' imprisonment may be imposed. Real estate agents who facilitate selling or purchase of properties must take prior registration from RERA. Such agents will be issued a single registration number for each State or Union Territory, which must be quoted by the agent in every sale facilitated by him.
  • 9. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Protection of buyers The Act prohibits unaccounted money from being pumped into the sector and as of now 70 per cent of the money has to be deposited in bank accounts through cheques. A major benefit for consumers included in the Act is that builders will have to quote prices based on carpet area and not super built-up area, while carpet area has been clearly defined in the Act to include usable spaces like kitchen and toilets.
  • 10. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Rights and duties of the allottees Section 19 provides for the various rights of the allottees. This section specifies various rights which the allottees have against the promoters including those which the promoters are liable to fulfill based on the agreement entered into with the allottees, namely – stagewise schedule of completion of the project and the services, claim timely possession of the apartment / plot, entitlement to necessary documents and plans etc.
  • 11. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Rights and duties of the allottees Section 20 provides for the various duties of the allottees, which provide for matters relating to payment regarding the apartment / plot, liability towards interest for delay in payment, responsibility to take possession, participate in formation of association etc.
  • 12. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Real Estate Regulatory Authority and Appellate Tribunal It will help establish state-level Real Estate Regulatory Authorities (RERAs) to regulate transactions related to both residential and commercial projects and ensure their timely completion and handover. Appellate Tribunals will now be required to adjudicate cases in 60 days as against the earlier provision of 90 days and Regulatory Authorities to dispose of complaints in 60 days while no time frame was indicated in earlier Bill.
  • 13. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Regulatory Authority As per section 20 the Regulatory Authority is required to be established within 1 year of the commencement of the said section. As section 20 has been notified with effect from 1st May, 2016, the Authority is required to be established maximum by 30th April, 2017. However, for speedy implementation of the Act, section 20 empowers the ‘appropriate Government’ to appoint an interim Regulatory Authority, until the establishment of the full time Authority.
  • 14. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Appellate Tribunal As per section 43 of the Act, the Appellate Tribunal is required to be established within 1 year of the commencement of section 43. As section 43 has been notified with effect from 1st May, 2016, the Appellate Tribunal is required to be established maximum by 30th April, 2017. However, for speedy implementation of the Act, section 43 empowers the ‘appropriate Government’ to designate an existing Appellate Tribunal (under any other law in force) to function as an Appellate Tribunal under the Act.
  • 15. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com RERA Rules The Act under Section 84 contemplates that within 6 months of the RERA Act being enforced, State Governments shall make rules for carrying out the provisions of the Act. The said Rules are to be notified by the respective State Government. As late as October 31, 2016, Central Government, released the Real Estate (Regulation and Development) (General) Rules, 2016, vide Notification by the Ministry of Housing & Urban Population (HUPA). The Rules so issued by the Central Government are applicable to the five Union Territories without Legislature viz., Andaman & Nicobar Islands, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep and Chandigarh. The Rules have been issued after prior release of Draft for comments.
  • 16. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com RERA Rules For Delhi, the Ministry of Urban Development is in the process of finalisation of rules while the state governments have to notify the rules on their own. States like Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu lag behind in implementation of the Rules, with their Rules still not notified. They are, however, at the advanced stages of finalising the Rules. Maharashtra and West Bengal has issued Rules for consultation also. Uttar Pradesh is the one of the first States to publish Rules for its respective State.
  • 17. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Modification to the Project As per section 14 of the Act the promoter can only modify / amend the sanctioned plans or project specifications, after the approval of the competent authority and its disclosure to the allottees, in case of minor additions or alterations. However, in case of major modification / alteration, the promoter can modify the sanctioned plans or project specification only after having taken approval from two-third of the allottees. In addition, for arriving at the number of two-third allottees, the number of apartments held by the promoter will be excluded. Also, irrespective of the number of apartments held by an allottee he/she shall only be entitled to one vote.
  • 18. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Structural Defect As per section 14(2) the promoter shall be liable for 5 years form the date of handing over of possession to the allottee towards structural defect or any other defect as specified therein.
  • 19. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Transfer of Title Section 17 of the Act provides for detailed provisions regarding transfer of title of the apartment and the project to the allottee and to the association of the allottees respectively.
  • 20. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com My Opinion 1. Life span of an Apartment / building. 2. Materials used – can be covered in AOS. 3. Real Estate Agent Commission. 4. Corpus Fund/Maintenance Fee.
  • 21. CHENNAI C2-A, Industrial Estate, Guindy, Chennai, Tamil Nadu 600032 Tel: +91 - 44 - 22501318 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Thanks for your Patience