(By Advocate Ravindra Pandharkar)
Govt. Of India passed an Act - “Real Estate (Regulation and Development) Act, 2016” which was made effective from 1st May, 2016. In this Article “The Act” means “ Real Estate (Regulation and Development) Act, 2016 ”.
The purpose of Passing the Act :
Where Applicable :
The Act is applicable to India to bring strict discipline and fairness in the sale of plots, apartments or buildings of the real estate project in an efficient and transparent manner. The Act aims at protecting the interest of consumers in the real estate sector.
How Applicable :
After passing of the Act the State Governments will set the rules to carry out the provisions of the Act in their respective area of operation by establishing the Real Estate Regulatory Authorities. For Union territories Central Government will take the apropriate steps for establishment of RERA. So far following Real Estate Regulatory Authorities are formed in states and are in operation.
|Andhra Pradesh||28 Mar 2017||https://rera.ap.gov.in/RERA/Views/Home.aspx|
|Bihar||1 May 2017||https://rera.bihar.gov.in|
|Chhattisgarh||26 Apr 2017||https://rera.cgstate.gov.in|
|Delhi||24 Nov 2016||https://rera.delhi.gov.in|
|Gujarat||20 Oct 2016||https://gujrera.gujarat.gov.in|
|Haryana||28 Jul 2017||https://haryanarera.gov.in|
|Himachal Pradesh||28 Sept 2017||http://www.hprera.in|
|Jharkhand||18 May 2017||https://jharera.jharkhand.gov.in|
|Karnataka||10 Jul 2017||https://rera.karnataka.gov.in|
|Madhya Pradesh||22 Oct 2016||http://www.rera.mp.gov.in|
|Maharashtra||19 Apr 2017||https://maharera.mahaonline.gov.in|
|Odissa||25 Feb 2017||http://www.urbanodisha.gov.in/ActsRules.aspx|
|Punjab||8 Jun 2017||https://rera.punjab.gov.in|
|Rajasthan||1 May 2017||http://rera.rajasthan.gov.in|
|Tamil Nadu||22 Jun 2017||https://www.rera.tn.gov.in|
|Telangana||4 Aug 2017||http://rera.telangana.gov.in|
|Uttar Pradesh||11 Oct 2016||https://www.up-rera.in|
|Uttarakhand||28 Apr 2017||http://ukrera.org.in|
For the Union Territories in 2016, the Central Government, through HUPA (Housing & Urban Poverty Alleviation) Ministry, released the general rules of the Real Estate (Regulation and Development) Act, 2016 which were made applicable to Chandigarh, Lakshadweep, Daman & Diu, Dadra & Nagar Haveli and Andaman & Nicobar Islands.
To Whom Applicable :
The act is applicable to the real estate projects and real estate agents.
A] Registration of Real Estate Project by the Promoter of the Project :
As per Section 3 of this Act every promoter has to register any r eal estate project or part of it promoted by him with the Real Estate Regulatory Authority established under this Act, which is having the jurisdiction and control at the location of the project. Without registration , the promoter can not 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. As as per Section 3 of the Act promoters have to register all their projects with the respective Real Estate Regulatory Authority. However the exception for registration is available in following cases :
B] Registration of Real Estate Agent :
As per Section 9 of this Act No R eal Estate Agent shall facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of it, being the part of the real estate project, being sold by the promoter in any planning area, without obtaining registration.
The Impact of the Provisions of the Act :
The Contents and the Chapters in the Act :
For Details of the Act (“Real Estate (Regulation and Development) Act, 2016”) the copy is available for download. Important chapters of the Act are as under.
|Chapter II||Registration Of Real Estate Project And Registration Of Real Estate Agents||3-10|
|Chapter III||Functions And Duties Of Promoter||11-18|
|Chapter IV||Rights And Duties Of Allottees||19|
|Chapter V||The Real Estate Regulatory Authority||20-40|
|Chapter VI||Central Advisory Council||41-42|
|Chapter VII||The Real Estate Appellate Tribunal||43-58|
|Chapter VIII||Offences, Penalties And Adjudication||59-72|
|Chapter IX||Finance, Accounts, Audits And Reports||73-78|
Important Definitions under the Act :
As per Section 2 (z) "immovable property" includes land, buildings, rights of ways, lights or any other benefit arising out of land and things attached to the earth or permanently fastened to anything which is attached to the earth, but not standing timber, standing crops or grass;
As per Section 2 (j) "building" includes any structure or erection or part of a structure or erection which is intended to be used for residential, commercial or for the purpose of any business, occupation, profession or trade, or for any other related purposes;
As per Section 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, including one or more rooms or enclosed spaces, located on one or more floors or any part thereof, in a building or on a plot of land, used or intended to be used for any residential or commercial use such as residence, office, shop, showroom or godown or for carrying on any business, occupation, profession or trade, or for any other type of use ancillary to the purpose specified;
As per Section 2 (k) "carpet area" means the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.
As per Section 2 (d) "allottee" in relation to a real estate project, means the person to whom a plot, apartment or building, 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 building, as the case may be, is given on rent;
As per Section 2 (zg) "Person" includes an individual, a Hindu undivided family, a company, a firm under the Indian Partnership Act, 1932, a firm under the Limited Liability Partnership Act, 2008, a competent authority, an association of persons or a body of individuals whether incorporated or not, a co-operative society registered under any law relating to co-operative societies or any such other entity as the appropriate Government may, by notification, specify in this behalf;
As per Section 2 (zn) "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 appurtenances belonging thereto.
As per Section 2 (zm) "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.
As per Section 2 (zk) "promoter" means:
(i) a person who constructs or causes to be constructed an independent building or a building consisting of apartments, or converts an existing building or a part thereof into apartments, for the purpose of selling all or some of the apartments to other persons and includes his assignees.OR
(ii) a person who develops land into a project, whether or not the person also constructs structures on any of the plots, for the purpose of selling to other persons all or some of the plots in the said project, whether with or without structures thereon.OR
(iii) any development authority or any other public body in respect of allottees of
(a) buildings or apartments, as the case may be, constructed by such authority or body on lands owned by them or placed at their disposal by the Government.OR
(b) plots owned by such authority or body or placed at their disposal by the Government, for the purpose of selling all or some of the apartments or plots. OR
(iv) an apex State level co-operative housing finance society and a primary co-operative housing society which constructs apartments or buildings for its Members or in respect of the allottees of such apartments or buildings.OR
(v) any other person who acts himself as a builder, coloniser, contractor, developer, estate developer or by any other name or claims to be acting as the holder of a power of attorney from the owner of the land on which the building or apartment is constructed or plot is developed for sale.OR
(vi) such other person who constructs any building or apartment for sale to the general public.
Explanation.—For the purposes of this clause, where the person who constructs or converts a building into apartments or develops a plot for sale and the persons who sells apartments or plots are different persons, both of them shall be deemed to be the promoters and shall be jointly liable as such for the functions and responsibilities specified, under this Act or the rules and regulations made thereunder.
As per Section 2 (zf) "occupancy certificate" means the occupancy certificate, or such other certificate by whatever name called, issued by the competent authority permitting occupation of any building, as provided under local laws, which has provision for civic infrastructure such as water, sanitation and electricity.
Rights & Duties of Allottees (As per Section 19)
Rights of Allottees :
b) Compensation in the manner as provided under this Act :
Duties of Allottees
Precautions and Care to be observed by the Allottees :
Other Important Provisions of the ACT :
This was an attempt made to cover the important provisions of the law. The material contained herein is not exhaustive, and contains certain generalizations and descriptions. The latest Provisions, Rules and Notifications must be viewed to get the exact information for interpretation. The presenter is not responsible for any loss incurred on the actions taken based on the material presented above.
- Advocate Ravindra Pandharkar