Frequently Asked Questions

Q.1 When does RERA was notified in India?

Ans. RERA act was notified on 26 March 2016 by Government of India . It is applicable to whole of India except the state of Jammu and Kashmir.

Q.2 What is Real Estate (Regulation and Development) Act, 2016?

Ans. This act is established to promote transparency and uniformity in real estate sector. Basically this act is for regulation and promotion of real estate sector. The main objective is to promote interest of consumers and investors in this industry. This act was passed by Rajya Sabha on 10 march 2016 and by lok sabha on 15 March 2016.

Q.3 Is registration compulsory for promoter under this act ?

Ans. Yes , it is compulsorily to get registration under RERA.

Q.4 This law will govern both residential and commercial real estate transaction?

Ans. Yes

Q.5 Is carpet area clearly defined in the act ?

Ans. Yes , carpet area is clearly defined in the act .
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.

Q.6 In what situation registration is not required?

  • 1) Where the area of land proposed to be developed does not exceeds 500 square meters or no of apartments does not exceed 8 in number.

  • 2) The promoter has already received completion certificate for a real estate project prior to commencement of this Act.
  • 3) for the purpose of renovation or repair or re-development which does not involve marketing, advertising selling or new allotment of any apartment, plot or building.

Q.7 I am a builder . I have a real estate project with 20 phases. Do I require a single registration?

Ans. No .In this act every phase is considered a stand alone real estate project and the promoter shall obtain registration under this Act for each phase separately.

Q.8 What all information is required to be submitted by promoter to the authority ?

Ans. Following are the details required to be submitted by promoter:

  • 1. brief details of the enterprise

  • 2. Brief details of projects launched by him in the past five years whether already completed or being developed, including current status of said projects, any delay in its completion, details of cases pending, details of type of land and payments pending.

  • 3 .Authenticated copy of approvals and commencement certificate from competent authority for real estate project mentioned in application.

  • 4. The sanctioned plan, layout plan and specifications of the proposed project

  • 5. The plan of development works to be executed in the proposed project and the proposed facilities to be provided including fire fighting facilities, drinking water facilities, emergency evacuation services, use of renewable energy.

  • 6. The location details of the project, with clear demarcation of land dedicated for the project along with its boundaries including the latitude and longitude of the end points of the project.

  • 7. Proforma of the allotment letter, agreement for sale, and the conveyance deed proposed to be signed with the allottees;

  • 8.Tthe number, type and the carpet area of apartments for sale in the project along with the area of the exclusive balcony or verandah areas and the exclusive open terrace areas apartment with the apartment .

  • 9. The number and areas of garage for sale in the project

  • 10. The names and addresses of his real estate agents, if any, for the proposed project

  • 11. The names and addresses of the contractors, architect, structural engineer, if any and other persons concerned with the development of the proposed project.

  • 12. Declaration, supported by an affidavit, which shall be signed by promoter or any person authorised by promoter

Q.9 What all things are required in declaration?

Ans. a) That he has a legal title to the land on which the development is proposed along with legally valid documents with authentication of such title, if such land is owned by another person.

  • b) That the land is free from all encumbrances or as the case may be details of the encumbrances on such land including any rights, title, interest or name of any party in or over such land along with details.
  • c) the time period within which he undertakes to complete the project or phase.
  • That seventy per cent. of the amounts realised for the real estate project from the allottees, from time to time, shall be deposited in a separate account to be maintained in a scheduled bank to cover the cost of construction and the land cost and shall be used only for that purpose.
  • e) He shall take all pending approvals on time from competent authorities.
  • f) That he has furnished such other documents as may be prescribed.

Q.10 What percentage of amounts for real estate project from allottees should be deposited in a separate account?

Ans. 70 % of the amount realised for real estate project shall be deposited in separate account to maintained with scheduled bank which will cover the cost of construction and land cost and will be used solely for that purpose only.

Q.11 What are the rules for withdrawal from separate account?

Ans. Amounts shall be withdrawn by the promoter only after it is certified by an engineer ,architect and a chartered accountant that withdrawal is in proportion to percentage of completion of project .

Q.12 What is the time limit for getting accounts audited by promoter .

Ans. Promoter shall get his accounts audited within 6 months after the end of the financial year .

Q.13 What is the time limit for grant of registration by the authority ?

Ans. The authority shall within 30 days grant registration to the applicant .

Q.14 What to do if the authority fails to grant registration?

Ans.If the authority fails to grant registration or reject the application , project shall be deemed to have been registered and authority shall within a period of 7 days provide a registration number and a Login Id and password to the promoter for accessing the website of the Authority and to create his web page and to fill therein the details of the proposed project.

Q.15 Can the registration once granted can be revoked?

Ans. The authority may on receiving any complaint or suo moto (Self) may revoke the registration granted .

Q.16 What acts lead to revocation of registration by RERA?

Ans. (a) Promoter makes default in doing anything under Act / Rules / Regulations.

  • b) Promoter violates any terms or conditions of approval given by competent authority.

  • c)Promoter is involved in any kind of unfair practice or irregularities

  • (d) Promoter indulges in any fraudulent practices

Q.17 What are the penalties that a real estate developer would face if he fails to adhere to the registration mandates or any other directions prescribed by the RERA?

Ans. If the real estate developer violates the registration procedures prescribed by the Act, he will be required to pay up to 10% of the total estimated cost of the project in question. If found continuing the offence, the real estate developer will be punishable either with imprisonment (up to 3 years) or a fine which may extend up to a further 10% of the above project cost.

Q.18 Do real estate agent are also required to get registered under this act ?

Ans. Yes.

Q.19 What if real agent doesn’t register with authority ?

Ans. If an agent violates the rules prescribed by the RERA, he will be liable to a penalty for every day of the violation caused and the sum could increase up to 5% of the total estimated cost of the unit in question.