Real Estate (Regulation and Development) Act, 2017

Detailed presentation on Rera Act, 2017 with Gujarat RERA Rules and Regulations.

1. .REAL ESTATE
(REGULATIONS &
DEVELOPMENT) ACT,2017
Prepared by :-
CSLokeshShah
CSBinnyPorwal

3. 15
th
March,2016
25
th
March,2016
1
st
May,2016
31
st
Oct,2016
April ,
2017
Bill passed by Lok Sabha
President of India accorded his assent to the Bill
69 sections of 92 of the Real Estate Act notifiedand comesintoeffect.
Formation of Rules (Section 84)
Establishment of RealEstateRegulatory Authority (RERA) and Real Estate
Appellate Tribunal (REAT) (Section 43)

5. ToestablishtheRealEstateRegulatoryAuthorityforregulationandpromotionoftherealestate
sector.
Toensuresaleofplot,apartmentorbuilding,asthecasemaybe,orsaleofrealestateproject,inan
efficientandtransparentmanner.
Toprotecttheinterestofconsumersintherealestatesectorandtoestablishanadjudicating
mechanismforspeedydisputeredressal.
ToestablishtheAppellateTribunaltohearappealsfromthedecisions,directionsorordersofthe
RealEstateRegulatoryAuthorityandtheadjudicatingofficerandformattersconnectedtherewithor
incidentalthereto.

6. TheActprohibitsunaccountedmoneyfrombeingpumpedintothesector.
Asnow,70percentofthemoneyhastobedepositedinbankaccountsthroughchequesleadingto
restrictondiversionoffunds.
SaleonCarpetAreas.CarpetareahasbeenclearlydefinedintheActtoincludeusablespaceslike
kitchenandtoiletsbutexcludesBalconyandVarandas.
TimelyDeliveryofProjectorpaymentoftheinterestatthespecifiedrates.
StructuralWarrantyfor5yearsafterhandingoverproject.

7. Chapter-1.
Prelimina
ry Section
1-2.
Chapter-
2.
Reg. of
Projects
and
Agents
Section
3-10.
Chapter
-3.
Functio
ns and
Duties
of
Promot
ers
Section
11-18.
Chapter
-4.
Rights
and
Duties
of
Allottee
s
Section
19
Chapter
-5.
The
Real
Estate
Regulat
ory
Authori
ty
Section
20-40.
Chapter
-6.
Central
Advisor
y
Council
Section
41-42.
Chapter
-7.
The
Real
Estate
Appella
te
Tribuna
l
Section
43-58.
Chapter
-8.
Offence
s,
Penalti
es and
Adjudic
ations
Section
59-72
Chapter
-9.
Finance
,
Account
s,
Audits
and
Reports
Section
73-78
Chapter-
10.
Miscella
neous
Sections
79-92.

8. CentralGovernment
R E R A
Developer Broker / Agent
Approvals/Registrationsto beobtained
Setting-up
Directionsfor
implementation ofReal
EstateAct, consumer
protection etc.
State Government
Central Government
Central Advisory Council
AMC/Local Authority

9. Rules:
Gujarat Real Estate (Regulation and Development) (General) Rules, 2017.
Authority:
UrbanDevelopment AND Urban Housing Department,Sachivalaya, Gandhinagar.
Effective Date:
1
st
May, 2017.

10. developmentofabuildingorabuildingconsistingofapartments,
convertinganexistingbuildingorapartthereofintoapartments,
developmentoflandintoplotsorapartment,
forthepurposeofsellingallorsomeofthesaidapartmentsorplotsorbuilding.

11. PromoterPromoter
Any other person who acts himself as
a builder, contractor, developer or
claims to be acting as the holder of a
power of attorney from the owner of
land
Such other personwhoconstructs any
buildingorapartmentforsaleto
generalpublic
APersonwhoConstructs
orcausestobe
constructedaBuildingfor
thepurposeofselling
State level co-operative
housing society and a
primary Co-operative
housing society
Any Development authority or
any other public body
APersonwhodevelopslandinto
aprojectforthepurposeof
sellingwithorwithoutstructure
thereon

12. CarpetArea–Section 2(k)
The net usable floor area of an apartment,excluding
Thearea covered by the external walls,
Areasunder services shafts,
Exclusivebalcony or verandah area,
Exclusiveopen terrace area.
Forthepurposeofthisclause,theexpression"exclusivebalconyorverandah
area"meanstheareaofthebalconyorverandah,asthecasemaybe,whichis
appurtenanttothenetusablefloorareaofanapartment,meantforthe
exclusiveuseoftheallottee;and"exclusiveopenterracearea"meansthearea
ofopenterracewhichisappurtenanttothenetusablefloorareaofan
apartment,meantfortheexclusiveuseoftheallottee.

13. Compulsoryregistrationforalltherealestateprojectexcept:
i)AreaofDevelopmentdoesnotexceed500SqMetersOR
NumberofUnitsdoesnotexceeds8inclusiveofallphases.
ii)ProjectWhichhasreceivedCompletionCertificate(BUPermission)ason1
st
May,2017.
iii)Renovation, Repair or Redevelopment not resulting into selling of any new apartment,
Plot or Building.
EveryPhaseisaStandalonerealestateProjectandrequiredtoberegisteredseparately.
ExistingProjectsarerequiredtoberegisteredwithin3months.i.e.onorbefore31
st
July,
2017..

14. Application to disclose:
Declarationin Form B.
Estimatedcost ofProject (calculatedas per Rule (6) and certifiedbya Chartered
Accountant.)
Detailsof the ProposedProject like approvals obtained, sanction plan, layout
plan, development plan to be executed etc.
Details of bank account to be utilized for the project.
KYC, IT Returns and Audited Balance SheetsofPromoters for last 3 years.
Details of projects launched in last five years, Execution details and cases pending
if any.
Detailsof Professionals and persons associated with theProject.
Draftof Agreement for Sell, Allotment Letter and ConveyanceDeedto be
executed.(Model Agreement for sale as per Rule 9)
Details of Real EstateAgents if any.
Promoter files an
Application
RERA processes the
same within 30 days
Failure leads to
Deemed Registration
Grant of Registration
Number with Online
Login id and Password
Update Project Details

15. Application is to be made inForm–A in Triplicate.
Fees Structure:
Validity Period:Time for completion of project mentioned inform B.
Withdrawal of Application:10% of Fees or Rs. 50,000 whichever is more will be retained as processing
fees. [Rule 3 (5)]
Particulars of the
Project
Area of Development
<=1000
Area of Development >
1000
Maximum
Group Housing ProjectRs. 5 per SM Rs.10 per SM Rs. 5 Lakh.
Mixed Development Rs. 10 per SM Rs.15 per SM Rs. 7 Lakh
Commercial Project Rs. 20 per SM Rs. 25per SM Rs. 10 Lakh
Plotted Development Rs. 5 per SM Rs. 2 Lakh.

16. •Legaltitletothelandproposedtobedevelopedwithdetails.
•Landisfreefromallencumbrancesanddetails.
•Timeperiodtocompletetheproject.
•70%oftheamountsrealizedfortherealestateprojectfromtheallottees,fromtimetotime,shallbedepositedina
separateaccounttobemaintainedinascheduledbanktocoverthecostofconstructionandthelandcostandshall
beusedonlyforthatpurpose.
•Amounttocoverthecostofconstructionwillbewithdrawninproportiontothepercentageofcompletionofthe
Projectafterprofessionalcertification.
•Promotershallgettheaccountsauditedwithinsixmonthsfromtheendofthefinancialyear.
•UndertaketotakeallthependingApprovalsontimefromthecompetentauthorities.
•HehasfurnishedsuchotherdocumentsasmaybeprescribedbytherulesorregulationsmadeunderthisAct.
Declaration
by
Developer
(Form B)
•Maximumadvance/applicationfeethatcanbereceivedbythePromoter,priortoexecutingawritten
agreementforsaleis10%ofthecostoftheapartment.
•MandatedtodepositthefundscollectedinseparatebankaccountandallowedtobeWithdrawnonly
aftercertificationfromanengineer,architectandacharteredaccountantinpracticecertifyingthe
withdrawalisproportionatetothepercentageofcompletionofproject
•Accountsofpromoterneedstobeauditedwithin6monthsoftheFinancialYearend.
•Overleveragingupto30percentonly.
Restrictions
on usage of
Funds.

17. “RealEstateAgent"meansanyperson,whonegotiatesoractsonbehalfofonepersonina
transactionoftransferofhisplot,apartmentorbuilding,asthecasemaybe,inarealestate
project,bywayofsale,withanotherpersonortransferofplot,apartmentorbuilding,asthe
casemaybe,ofanyotherpersontohimandreceivesremunerationorfeesoranyother
chargesforhisserviceswhetherascommissionorotherwiseandincludesapersonwho
introduces,throughanymedium,prospectivebuyersandsellerstoeachotherfornegotiation
forsaleorpurchaseofplot,apartmentorbuilding,asthecasemaybe,andincludesproperty
dealers,brokers,middlemenbywhatevernamecalled.
CompulsoryRegistrationwithRERA.
MaintainandPreservebooksofAccounts,RecordsandDocuments.
ShallnotinvolveinUnfairTradePractices
FacilitatethepossessionofallinformationanddocumentstotheAllottee.
FailuretoregisterattractsPenaltyofRs.10,000foreverydayupto5%ofcostofapartment.

18. Application
FormGintriplicate.
RegistrationFees:
Individual: 10,000.
Others: 50,000.
Validity:
5years.
Renewal:
formJinTriplicate
beforethreemonthsofexpiryoftheRegistrationcertificate
forthenextfiveyears.
RenewalFees:
Individual: 5,000.
Others: 25,000.
Name,AddressandTypeofEntity.
RegistrationCertificateifany.
ConstitutionDocuments(MOA,AOAofthe
Company/LLPAgreement/Partnership
Agreementetc.)
Name,Address,ContactDetailsand
Photographs of the
Partners/Directors/Proprietor.
SelfCertifiedCopyofPANCardandAddress
ProofsoftheEntity.
SelfCertifiedcopiesofLetterhead,
AcknowledgementReceiptandRubberstamp
proposedtobeused.
BriefDescriptionofMajorityActivities.
LastThreeYearsITReturnsorSelfDeclaration
ifexempted.
DetailsofRegistrationunderanyotherStateor
UnionTerritory
Documents required

19. GiveaccurateandCorrectinformationinadvertisementandprospectus.
ExecuteandRegisterAgreementforSaleofunitbeforetakingadvanceorcollections
inexcessof10percent.
DeveloptheprojectasperSanctionedplansandSpecification.
TransferofProjectispossibleonlywiththepriorapprovalofauthority.Andwritten
consentof2/3rdofallotteesexcludingpromoters.
TakeInsuranceofTitleoflandandBuildingwhicharepartofprojectand
Constructionofrealestateproject.
ObtainOccupancyCertificatefromLocalAuthority,Executetheconveyancedeedto
allotteeswithinthreemonthsthereofandHandoverpossessionallottees.

20. Rightofinformationinrelationtopromoterandrealestateproject.
RighttoreceiveCompletionCertificate/Occupancycertificate.
RighttoremedyofapproachingRERAagainstwrongfulcancellationofallotmentbypromoters.(Buildersand
Developers).
Righttoclaimcompensationorinterestfrompromotersforbreachesofagreementofsale.
Righttowithdrawfromtheprojectandclaimreturnofinvestmentwithinterestandcompensationincaseoffalse
advertisementornonfulfillmentofanyconditionsmentionedintheagreement.
Righttoclaimcompensationfromthepromotersincaseoflosscausedtoallotteesduetodefectivetitle.
RighttoexecutionofAgreementforSale,beforepaymentof10%ofcostofflat/apartment/gala/landetc.

21. Righttostatutoryremedyoffilingcompliantwithadjudicationauthoritiesforenforcementofrights
Righttoexecutionofregisteredconveyancedeedbythepromoters
Righttophysicalpossession
Rightagainstalterationofprojectwithouttheirconsent.
Rightagainsttransferorassignmentofprojectbythepromoterstothirdpartywithoutconsentof
allotteesorassociationofallotteesRighttochargesamerateofinterestfordefaultinpaymentas
promoterswillbechargesincaseofbreachofanyclausesoftheAgreementofSale.

22. ResponsibilitytopayinterestfordelayinpaymentaccordingtoAgreementofSale;
ResponsibilitytoparticipateinformationofAssociationofAllottees;
Responsibilitytotakephysicalpossessionoftheapartment,plotorbuildingasthecase
maybe,withinaperiodoftwomonthsoftheissueofOccupancycertificate;
Responsibilityinparticipatinginexecution&registrationofconveyancedeed;
ResponsibilitytopaypenaltyforbreachofanyorderoftheCompetentAuthority;

23. Specifytheparticularsofdevelopmentoftheprojectincludingtheconstructionof
buildingandapartments,alongwithspecificationsandinternaldevelopmentworks
andexternaldevelopmentworks,
Thedatesandthemannerbywhichpaymentstowardsthecostoftheapartment,
plotorbuilding,asthecasemaybe,aretobemadebytheallotteesand
Thedateonwhichthepossessionoftheapartment,plotorbuildingistobehanded
over,
Theratesofinterestpayablebythepromotertotheallotteeandtheallotteetothe
promoterincaseofdefault

24. IfanypromotercontravenestheprovisionsofregistrationunderSection3-liableto
penaltyupto10%oftheestimatedcostofprojectasdeterminedbytheAuthority.
Ifanypromoterprovidesfalseinformationorcontravenestheprovisionsof
registrationofrealestateprojectsundersection4-penaltyupto5%oftheestimated
costoftheproject.
If any promoter contravenes any other provisions of the Real Estate Act-penalty up
to 5% of the estimated cost of the project as determined by the Authority.
Ifanypromoterdoesnotcomplywiththeorders,decisionsordirectionsissuedor
continuestoviolatetheprovisionsofregistrationundersection3-imprisonmentupto3
yearsorwithfineupto10%oftheestimatedcostoftheproject,orwithboth.

25. •Default in the requirements of the Act.
•Violates terms and conditions of the approval given by any competent
authority.
•Unfair Practices or Irregularities.
•Opportunity of being heard within 30 days.
Revocation of
Registration
•Debar the promoter from accessing Website.
•Listing of developers as defaulters.
•Freezing bank account.
•Inform RERA in other states/UTs about revocation.
•Handover of the development to association of allottees/competent
authorities upon consultation with relevant state government.
Consequences
of Revocation

26. Section 3
Registration
of RE Project
with RERA
Section 4
Withdrawal
Certification
based on POC.
Section 56
Representation
Services
Section 4
Audits
(Statutory
and Internal)
and IFCs.

27. Emphasisontimelycompletionand
deliveryofREProjects.
IncreasedqualityofConstruction–
defectliabilityfor5years.
Saleoncarpetareabasisand
balancedbuilder-buyeragreement
willimprovetransparencyinpricing
andbringinstandardization.
Moreregulatedsectorwillattract
moreinvestments.
Greatervisibilityintodevelopers
trackrecordsanddelivery
performance.
MultipleAuthorityApprovals.
DelayinProjectlaunches.
IncreasedCostduetoincreased
compliancecost.
ReduceCompetition.
Greaterliquidityconstraintson
developerswillimpactNew
Developersentryandsubsequent
expansionandprojectcost.
Multipleforumsfordispute
resolutionofgrievances(Consumer
Forums,CCI,ConsumerCourts).

28. NoCivilCourtshallhavejurisdictiontoentertainanySuitorproceedinginrespectof
anymatterwhichtheauthorityortheadjudicatingofficerortheAppellateTribunalis
empoweredbyorunderthisActtodetermineandnoinjunctionshallbegrantedbyanyCourt
orotherauthorityinrespectofanyactiontakenortobetakeninpursuanceofanypower
conferredbyorunderthisAct.
Bar of jurisdiction

29. LokeshShah
Company Secretary and Trademark Attorney
226, Devashish Arcade, Opp. Gurudwara,
Odhav. Ahmedabad. Gujarat-382415.
(M) + 91 8000647068
[email protected]
Any Questions ??
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