The Real Estate (Regulation And Development) Act, 2016, commonly known as RERA is an act enacted 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. Let’s examine role of promoter and advocate under the said act.
Role of Promoter
1. Every project of more than 500 Square Meter area of land or more than eight apartment, should be registered with RERA authority
2. Promoter should not advertise, book, sell or offer in any form any apartment or unit unless project is registered and necessary approvals have been secured
3. Promoter to deposit 70% of the amount realized from the allottees in an Escrow account. The funds in this account should be utilized only for the same project for which it is meant for. Amount withdrawn from this account should be in proportion to extent of work done. Extent of work done and amount to be withdrawn shall be certified by an engineer, an architect and CA.
4. Project account should get audited by CA within 6 months of end of financial year. The account is to be audited by CA to ensure and certify that; all the provisions related to financials have been complied
5. Promoter should not create any charge or mortgage of any nature alter execution of Agreement to Sale of any unit. Draft of agreement to sale should be as per model agreement suggested and approved by RERA authority
6. Promoter should not make any addition(s), alteration(s), to sanctioned plans, layout unless same have been consented by at least 2/3rd of allottees other than promoters
7. Promoter should create a webpage on RERA website to give general information of project, sanctioned plans, layout plans, stage wise time schedule of completion of project, provision of civic infrastructure like water, sanitation and electricity along with other specifications of the project for public viewing
8. Advertisement or prospects for the solicitation purpose should have clear mention of address of website and RERA registration number
9. Obtain completion certificate from the competent authority and handover possession to the allottees as per time schedule
10. Provide essential services to the allottees on reasonable charges till the time maintenance activities are taken over by the association of allottees
11. Form association or cooperative society under applicable laws within not more than three months of booking of majority of units
12. Execute deed of conveyance in favour of the allottee along with undivided proportionate title in the common areas to the association of allottees
13. Promoter to make full and true disclosure of all encumbrances land of project, including any right, title, interest or claim of any party in or over the land
14. All the documents relevant to the project shall be open for inspection for the allottees or should be made available for inspection upon receipt of reasonable notice
15. Promoter is liable to compensate the allottees for the loss caused by defect in title of land and such claim shall not be barred by any law of limitation
16. Promoter is liable to compensate allottees for failure to discharge any obligation imposed by RERA Act, rules, regulations and provisions in the agreement to sale
Role of Advocate
1. Title verification of land on which real estate project is to be planned
2. Helping promoter to resolve defects in title if any
3. Advising and resolving landlord-tenant issues in case of redevelopment
4. Legal assistance for acquisition of land
5. Advising on joint venture development
6. Helping promoter for commercial contracts as per business need
7. Advising promoter on health and safety of workers at construction site
8. Mortgage and finance agreements
9. Representing promoter before RERA Authority and Appellate Authority along with conciliation and dispute resolution forum
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