REAL ESTATE(REGULATION AND DEVELOPMENT)ACT,2016

PAWAN PATHAK Law associate

PREAMBLE• An Act to establish the Real Estate Regulatory

Authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, or sale of real estate project, in an efficient and transparent manner and to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto.

GOOD TO KNOW DEFINATIONS

Sec 2(e) "apartment" whether called block, chamber, dwelling unit, flat, office, showroom, shop, godown, premises, suit, tenement, unit or by any other name, means a separate and self-contained part of any immovable property.

Sec 2(f) "Appellate Tribunal " means the Real Estate Appellate Tribunal established under section 43.

"carpet area" means the net usable floor area of an apartment. "building" includes any structure or erection or part of a structure or

erection which is intended to be used for residential, commercial. "common areas" mean the entire land for the real estate project

the stair cases, lifts, staircase and lift lobbies, fir escapes, and common entrances and exits of buildings; the common basements, terraces, parks, play areas, open parking areas and common storage spaces; all community and commercial facilities.

MANDATE REGISTRATION• 3. (1) No promoter and agent/broker shall advertise,

market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act:

• EXEMPTION – in case where construction is below 500 sq.meter or number of apartment is below 8.

• 4. (1) application to authority for regestration of real estate project along with prescribed documents under sec 4(2).

Function and duties of promoter• Compulsory web site mentioning

every minute details about his projects for public viewing. Section 11(1)

• Advertisement shall mention all details of project.

• At time of booking ,promoter shall isssue allotment letter along with every relevant details of project. Sec 11(3)

Rights and duties of promoter mentioned in sec 11-18 of this Act

• Promoter shall be responsible for all obligations, responsibilities, and function under the provisions of the Act till the conveyance of flat

• For structural defect or any other defect he shall be responsible till 5 years after conveyance. sec 14(3)

• Responsible for obtaining lease certificate if any, providing and maintaining essential services on reasonable charges.

• Obligation to obtain insurance for the project.

Duties of allotteEntitled to obtain all information

relating to sanction plan, layout plan section 19.

Entitled to claim the possession of flat and common areas.

Allotte shall be responsible to pay interest in case of delay of payment as per entered agreement between promoter and allotte.

Real estate regulatory authority• Within one year from passage of this Act by

every state, section 20.• Function is to facilitate the growth and

promotion of healthy, transparent, efficient and competitive real estate sector. Section 32

• (a) protection of interest of the allottees, promoter and real estate agent;

• (e) encourage sustainable developments of project.

• Grading of project along with promoters grading.

Real estate appellate tribunal• Section 43 - appropriate govt. within 1 year

establish this tribunal.• (5) Any person aggrieved by any direction or

decision or order made by the Authority or by an adjudicating officer under this Act may prefer an appeal before the Appellate Tribunal having jurisdiction over the matter.

• It will not be bound by civil procedure code and will be regulated by principal of natural justice.

• After this 2ndAppeal can be made to high court within 60 days.

Offences and penalties• For non registration – 10% of project• If promoter does not comply with orders,

directions and decisions will be liable to be imprisoned for max 3 years or with fine 10% or both.

• If he gives false information then 5% fine.• For any other contravention under Act, 5% of

project cost.• In case of offence by companies then person

in charge will be responsible( director)

Miscellaneous provision• Section 86(2) every rule or notification issued

by state must be laid before state legislature.• Section 88 – application of other laws not

barred it’s in addition to and not derogation of any other law for time being in force.

• section 89- provisions of this act not inconsistent with any law will have over-riding effect .

• Section 92- repeal the Maharashtra housing Act,2012.

What for TruLex

• Section 84 makes a reference to legal practitioners in case dispute arises.

• We can extend our area of service to provide for registration services as well for promoters and connect with broker firms as 2.

• Wait. Let me think of some more…by then enjoy your coffee .