Ques 1: What are the objects and reasons for which the Real Estate (Regulation and Development) Act 2016 has been framed ?

Ans: The Real Estate Act is intended to achieve the following objectives: 1. Ensure accountability towards allottees and protect their interest; 2. Infuse transparency, ensure fair-play and reduce frauds & delays; 3. Introduce professionalism and pan India standardization; 4. Establish symmetry of information between the promoter and allottee; 5. Imposing certain responsibilities on both promoter and allottees; 6. Establish regulatory oversight mechanism to enforce contracts; 7. Establish fast- track dispute resolution mechanism; 8. Promote good governance in the sector which in turn would create investor confidence.

Ques 2: Which projects comes under the purview of RERA?

Ans: All the real estate projects for which Building permissions were approved on or after 01-01-2017 by the Competent Authorities viz., UDAs / DTCP / Municipal Corporations / Municipalities / Nagar Panchayats / TSIIC as the case may be comes under the purview of RERA Act & Rules except the projects where: 1. Area of land proposed to be developed does not exceed five hundred square meters 2. Number of apartments proposed to be developed does not exceed eight inclusive of all phases 3. Renovation or repair or re-development which does not involve marketing, advertising selling or new allotment of any apartment, plot or building, as the case may be, under the real estate project

Ques 3: Whether public bodies such as Development Authorities and Housing Boards the definition of promoter

Ans: Yes. The Act covers all private and public bodies which develop real estate projects for sale to the general public. Section 2 (zk) defines the term ‘promoter’ which includes both private and public real estate promoters. Thus, both Development Authorities and the Housing Boards, when involved in sale are covered under the Act.

Ques 4: Does the term "Allottee" include secondary sales

Ans: As per section 2(d) an allottee includes a person who acquires the said ‘apartment / plot’ through transfer or sale but does not include a person to whom such plot, apartment is given on rent. The Act doesn’t include rental projects, lease / leave and License deals.