All That You Need To Know About Real Estate Regulation Act 2016

59 – Punishment for Non-registration

• Cannot advertise, market, sell or offer to sell without registration.
• In case the project is ongoing before the enactment, and CC has been not issued, Promoter needs to make an application to the authority for registration in 3 months.
• In case of development beyond the planning area, with local authorities permission, permission may be granted in allottees interest.
• Land-500 Sq. Mtrs, 8 Apartments, where CC has been received prior, for repair or re-development purpose no registration necessary.
• 59 – Contravention of Section 3 – Penalty extending up to 10% of the estimated cost of the project.
• Contravention of order, or continuance of violation of S.3, imprisonment up to 3 years, further extension of 10% of the fine.

60 – Penalty for contravention of Section 4

• The compulsion of a promoter to apply for registration, a fee as specified by the regulations, made by an authority with a List of documents (mentioned at the end) to be enclosed:
• The promoter shall withdraw from the separate account only in proportion to the work complete, with certification from an engineer, architect, and CA.
• Promoter required to get accounts audited within 6 months of every financial year.
• 60 – In case of false information or contravention of section 4 –penalty up to 5% of the estimated cost

• After receiving Log in ID and Password, create a web page on the website of the authority – all details to be entered as under section 4, for public viewing, including the list at the end of this article.
• The Advertisement issued by promoter shall have prominent website address of the authority.
• List of enclosures to be provided to the allottee
• Promoter – Responsible for all obligations, responsibilities and functions,  till conveyance and common areas thereof, Responsibility with respect to defect continues as mentioned in section 14.
• To obtain Completion/Occupancy certificate and make it available to the allottees.
• To obtain lease certificate, in case of leasehold land, specifying the period of the lease, clearance of dues etc.
• Maintain essential services on the reasonable charge, till taken over the association of allottees.
• Enable the formation of the association.
• Execute a registered deed of conveyance of apartments, plot, building etc to the allottees, with the undivided proportionate title in the common places to the association/competent authority.
• Pay all outgoings till the transfer of physical possession is made, in case of delay in such payment, promoter liable to pay even after such transfer is made.
• After the agreement for sale is executed, any charge created on the said property, shall not affect the rights of the allottee.
• An allotment can cancelled as per the terms of the agreement of sale – allottee may approach authority in case of aggravation by such cancellation.

12 – Obligations of promoter regarding the veracity of the advertisement or prospectus

13- No deposit or advance to be taken by promoter without first entering into the agreement for sale

14- Adherence to sanctioned plans and project specifications by the promoter

15 – Obligations of a promoter in case of transfer of a real estate project to a third party

16 – Obligations of promoter regarding insurance of real estate project

17 – Transfer of title

• In case of any advance payment on the basis of false statement/advertisement/model house, the loss suffered therein shall be compensated by the promoter.
• In case of withdrawal on the same grounds, entire investment along with interest rate to be provided.
• The amount more than 10% shall not be accepted as advance/application fee, without entering into a written agreement for sale.
• Agreement of sale requires having all specifications of the development of the project.
• The proposed project to e completed in accordance with the sanctioned plans.
• After the said sanctions, and disclosure to the said allottee, no alterations to be made except without the consent of that person, except minor alterations/additions can be done on due recommendation and verification of engineer/architect.
• Any alteration/addition to the sanctioned plans, layout plans or building specifications cannot be changed with the written consent of 2/3rd of the allottees.
• In case of structural defects or other obligations is brought to the notice of the promoter, within a period of 5 years, the duty of the promoter to rectify it – in case of failure, allottees entitled to apt compensation.
• No transfer/assignment of majority rights and liabilities without the written consent from 2/3rd allottees.
• Such transfer shall not result in the extension of time.
• Intending promoter needs to independently comply with all the pending obligations, and no changes in the allotment shall effect with the transfer of the erstwhile promoter.
• Insurance in respect of land and building as a part of the real estate project and construction of the real estate, insurance to obtained and premium to be paid by the promoter, before transferring it to the association. The transfer shall stand transfer on entering of the agreement for sale. On the formation of the association, all documents related to insurance to be handed over the association.
• Execute a registered conveyance deed in favor of the allottee along with the undivided proportionate title of the common areas to the association and other title documents within 3 months (in absence of local laws)
• After obtaining the occupancy certificate and handing over physical possession shall be the duty of the promoter to hand over  necessary documents and plans within 30 days (in absence of local laws)

• In case of failure to complete/handover the possession in accordance with the agreement/deal to discontinuance of business/cancellation, liable, on demand of allottees:

1. On withdrawal, the amount received so far, along with interest in a manner provided by the act.

2. On non-withdrawal, interest for every month.

• The promoter shall compensate for the loss, due to the defective title, and such claim not barred by limitation.
• In case of failure to discharge any duties, compensate as provided by the act.

61. The penalty for contravention of other provisions of this Act.

• In cases of contravention of sections other than 3, 4 – penalty up to 5% of the estimated cost.