IMPORTANT DEFINITIONS 2 c agreement for sale means an agreement entered into between the promoter and the allottee 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 ID: 1003151
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1. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016IMPORTANT DEFINITIONS2 (c) "agreement for sale" means an agreement entered into between the promoter and the allottee;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;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; 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.
2. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016IMPORTANT DEFINITIONS2 (m) "commencement certificate" means the commencement certificate or the building permit or the construction permit, by whatever name called issued by the competent authority to allow or permit the promoter to begin development works on an immovable property, as per the sanctioned plan;2 (q) "completion certificate" means the completion certificate, or such other certificate, by whatever name called, issued by the competent authority certifying that the real estate project has been developed according to the sanctioned plan, layout plan and specifications, as approved by the competent authority under the local laws;2 (v) "estimated cost of real estate project" means the total cost involved in developing the real estate project and includes the land cost, taxes, cess, development and other charges;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;
3. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016IMPORTANT DEFINITIONS2 (za) "interest" means the rates of interest payable by the promoter or the allottee, as the case may be. Explanation—For the purpose of this clause— (i) the rate of interest chargeable from the allottee by the promoter, in case of default, shall be equal to the rate of interest which the promoter shall be liable to pay the allottee, in case of default; (ii) the interest payable by the promoter to the allottee shall be from the date the promoter received the amount or any part thereof till the date the amount or part thereof and interest thereon is refunded, and the interest payable by the allottee to the promoter shall be from the date the allottee defaults in payment to the promoter till the date it is paid
4. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016IMPORTANT DEFINITIONS2 (zf) "occupancy certificate" means the occupancy certificate, 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;2 (zh) "planning area" means a planning area or a development area or a local planning area or a regional development plan area, by whatever name called, or any other area specified as such by the appropriate Government or any competent authority and includes any area designated by the appropriate Government or the competent authority to be a planning area for future planned development, under the law relating to Town and Country Planning for the time being in force and as revised from time to time;(zl) "prospectus" means any document described or issued as a prospectus or any notice, circular, or other document offering for sale or any real estate project or inviting any person to make advances or deposits for such purposes;
5. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016IMPORTANT DEFINITIONS2 (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 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 any development authority or any other public body in respect of allottees of buildings or apartments or plots owned by such authority or bodyA 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
6. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016REGISTRATION OF PROJECT -SECTION 3 (1) A Promoter shall 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, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this ActProjects that are ongoing on the date of commencement of this Act and for which the completion certificate has not been issued, the promoter shall make an application to the Authority for registration of the said project within a period of three months from the date of commencement of this Act(On-going real estate projects that have not received Occupancy Certificate before 01.01.2020 shall apply for registration on or before 31.03.2020 All real estate agents shall be registered with K-RERA with effect from 01.01.2020)Developments beyond the Planning area may also be required to be registered by the Authority if it thinks fit
7. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016CASES WHEN REGISTRATION NOT REQUIRED SECTION 3 (1) where the area of land proposed to be developed does not exceed five hundred square meters or the number of apartments proposed to be developed does not exceed eight inclusive of all phaseswhere the promoter has received completion certificate for a real estate project prior to commencement of this Act; 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, as the case may be, under the real estate project.For the purpose of this section, where the real estate project is to be developed in phases, every such phase shall be considered a stand-alone real estate project, and the promoter shall obtain registration under this Act for each phase separately.
8. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016APPLICATION BY THE PROMOTER UNDER SECTION 4 Promoter shall make an application to the Authority for registration of the real estate project in Form M giving all details of the Project, Registered Address, names, details and Photographs of the PromotersBrief Details of the Projects launched by him for the past five years with complete status as on date of applicationCommencement Certificate and Sanctioned Plan along with Layout Plans and Proposed Development Plans along with all safety measures such as Fire fighting, etc.Location details of the Projectproforma of the allotment letter, agreement for sale, and the conveyance deed proposed to be signed with the allottees
9. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016APPLICATION BY THE PROMOTER UNDER SECTION 4 number, type and the carpet area of apartments for sale number and areas of garage for sale in the projectnames and addresses of his real estate agents, if any, for the proposed project names and addresses of the contractors, architect, structural engineer, if any and other persons concerned with the development of the proposed project;
10. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016APPLICATION BY THE PROMOTER UNDER SECTION 4A Declaration, supported by an affidavit signed by the promoter or any person authorized by the promoter, stating:— 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; 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; the time period within which he undertakes to complete the project or phases thereofthat seventy per cent. of the amounts realized 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 that the land cost and shall be used only for that purpose The promoter shall withdraw the amounts from the separate account, to cover the cost of the project, in proportion to the percentage of completion of the project as per Certification of Chartered Accountant
11. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016APPLICATION BY THE PROMOTER UNDER SECTION 4 - (ROLE OF CA)That amounts from the separate account shall be withdrawn by the promoter after it is certified by an engineer, an architect and a chartered accountant in practice certifies that the withdrawal is in proportion to the percentage of completion of the projectThat the promoter shall get his accounts audited within six months after the end of every financial year by a chartered accountant in practice, and shall produce a statement of accounts duly certified and signed by such chartered accountant and it shall be verified during the audit that the amounts collected for a particular project have been utilised for the project and the withdrawal has been in compliance with the proportion to the percentage of completion of the projectThe Promoter shall take all the pending approvals on time, from the competent authorities
12. REGISTRATION FEES FOR PROJECTS IN KERALAREAL ESTATE PROJECTS1Plot developmentRs. 10 per sqm of total layout area2Ongoing Residential projectsRs. 10 per sqm of total layout area plus Rs. 25 per sqm of total floor area3New Residential projectsRs. 10 per sqm of total layout area plus Rs. 50 per sqm of total floor area4Commercial or any other projectsRs. 10 per sqm of total layout area plus Rs. 100 per sqm of total floor areaREAL ESTATE AGENTS1IndividualRs. 25,000 per person2Firm / Company / OthersRs. 2,50,000 for a firm
13. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016GRANTING OF REGISTRATION UNDER SECTION 5Authority shall within a period of 30 days:Grant Registration along with Login ID and password to the applicant for accessing the website of the Authority and to create his web page and to fill therein the details of the proposed projectreject the application for reasons to be recorded in writing, if such application does not conform to the provisions of this Act or the rules or regulations after giving due opportunity of being heardIf Authority fails to grant the registration or reject the application the project shall be deemed to have been registeredAuthority shall within a period of seven days of the expiry of the said period of thirty 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 projectRegistration valid for the period declared by the promoter for completion of the project or phase thereof
14. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016EXTENSION OF REGISTRATION UNDER SECTION 6Registration granted under section 5 may be extended by the Authority on an application made by the promoter due to force majeureAuthority may in reasonable circumstances without default on the part of the promoter, based on the facts of each case, and for reasons to be recorded in writing, extend registration granted to a project for such time as it considers necessary, which shall, in aggregate, not exceed a period of one yearNo application for extension of registration shall be rejected unless the applicant has been given an opportunity of being heard in the matter. “Force majeure" shall mean a case of war, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature affecting the regular development of the real estate project.
15. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016REVOCATION OF REGISTRATION UNDER SECTION 7Authority on receipt of a complaint or Suo motu may revoke the registration granted under section 5, after being satisfied thatthe promoter is in default in doing anything required by or under this Act or the rules or the regulations the promoter violates any of the terms or conditions of the approval given by the competent authoritythe promoter is involved in any kind of unfair practice or irregularities.
16. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 UNFAIR PRACTICE UNDER SECTION 7Practice of making any statement in writing or by visible representation which : falsely represents that the services are of a particular standard or graderepresents that the promoter has approval or affiliation which such promoter does not havemakes a false or misleading representation concerning the servicesthe promoter permits the publication of any advertisement or prospectus whether in any newspaper or otherwise of services that are not intended to be offeredthe promoter indulges in any fraudulent practices
17. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016REVOCATION OF REGISTRATION UNDER SECTION 7Registration granted to the promoter under section 5 shall not be revoked unless the Authority has given to the promoter not less than thirty days notice, in writing, stating the grounds on which it has proposed to revoke the registration Authority may, instead of revoking the registration permit it to remain in force subject to such further terms and conditions as it thinks fit to impose in the interest of the allottees, and any such terms and conditions so imposed shall be binding upon the promoter.
18. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016ACTION BY AUTHORITY AFTER REVOCATION OF REGISTRATION U/S 7(4)Debar the promoter from accessing its website in relation to that project and specify his name in the list of defaulters and display his photograph on its website and also inform the other Real Estate Regulatory Authority in other States and Union territories about such revocation Facilitate the remaining development works to be carried out in accordance with the provisions of section 8Direct the bank holding the project back account, specified under subclause (D) of clause (I) of sub-section (2) of section 4, to freeze the account, and thereafter take such further necessary actions, including consequent de-freezing of the said account, towards facilitating the remaining development works in accordance with the provisions of section 8To protect the interest of allottees or in the public interest, issue such directions as it may deem necessary
19. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 OBLIGATION OF AUTHORITY AFTER REVOCATION (SECTION 8) Upon lapse of the registration or on revocation of the registration under this Act, the Authority, may consult the appropriate Government to take such action as it may deem fit including the carrying out of the remaining development works by competent authority or by the association of allottees or in any other manner, as may be determined by the AuthorityNo direction, decision or order of the Authority under this section shall take effect until the expiry of the period of appeal provided under the provisions of this ActIn case of revocation of registration of a project under this Act, the association of allottees shall have the first right of refusal for carrying out of the remaining development works
20. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016THE PROMOTER SHALL: register all the real estate projects with RERAget all the sale agreements executed in the prescribed format and registered as per the prevailing laws Deposit 70% of advances received from allottees in a separate bank account opened for each project.Shall not accept a sum more than 10% of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and registering the said agreement for saleupdate quarterly, the stage wise progress of project and the number of bookings, in the web portal of RERAadhere to the sanctioned plans and project specificationsbe responsible for any structural defect or any other defect in workmanship, quality or provision of services for a period of five years from the date of handing over.
21. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016THE PROMOTER SHALL: facilitate the formation of association of allottees within a period of three months of majority of allottees having booked the apartment/plot.provide and maintain essential services on reasonable charges till taking over charge by the association of allotteespay all outgoing charges until transfer of physical possession of projectsobtain all insurances on title of land, building and construction of the project and pay premium and charges and hand over all related documents, to allottees / associationobtain Occupancy Certificate and make it available to allottees /association
22. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016THE PROMOTER SHALL: execute conveyance deed in favour of allottee within three months from the date of receipt of Occupancy Certificateobtain Lease Certificate, if project is developed on a leasehold land and make it available to allottee / associationfurnish copy of all the documents / approvals /sanctions /drawings and plans to the allottee and original to the association at the time of exit of the projecthandover copy/original of the above documents to the association before exiting the projectcompensate the allottees for any delay of project or defective title of land or any other such loss that is caused to allottee.
23. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 THE PROMOTER SHALL NOT : Receive from the allottee, more than 10% of the cost of the apartment/plot/villa/ shop before the execution of sale agreementWithdraw the amount from the separate account without the certificates from the Engineer, Architect and a Chartered Accountant in practice as to stage wise completion of the projectTransfer or assign his majority rights and liabilities with respect to the real estate project to a third party without prior written consent of the two-third majority of the allottees
24. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016THE PROMOTER SHALL NOT : Cancel allotment of apartment against the terms and conditions of the agreement of saleMortgage or create any charge on the project property after executing an agreement for sale with the allotteeAdvertise, sell, or canvas for sale through any medium without K-RERA registrationPublish any wrong or misleading advertisements /prospectus / brochure / notice to the real estate projectDeviate from the sanctioned plan or change the specification without the previous consent of the allottees.
25. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016ALLOTTEES SHALL : Have the right to obtain all information such as copy of sanctioned plans, layout plans, specifications, approved by the competent authority and copies of all documents such as title deed and all other information related to the projectHave the right to know stage wise time schedule of completion of the project including provision of water, sanitation, electricity and other amenities and services as agreed by the promoter as per the agreementHave the right to claim possession of the apartment have the right to claim refund of amount with interest and compensation, if the promoter fails to comply or is unable to give possession in accordance with terms of agreement or due to discontinuance of his business by suspension or revocation of registration
26. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016ALLOTTEES SHALL : make payments to the promoter in the manner and within the time specified in the agreement at the proper time and place pay common area maintenance charges to the association.be liable to pay interest for delay in payment to the promoterbe a participant in the associationtake possession of apartment within 2 months of issuance of Occupancy Certificateparticipate in the registration of conveyance deed.
27. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 – FILING OF COMPLAINTS AND CLAIMSAny aggrieved person can file a complaint against any promoter, allottee or real estate agent to the Authority in Form M along with a fee of Rs. 1000/- in the form of DD in favour of the ‘Kerala Real Estate Regulatory Authority’ payable at Thiruvananthapuram.For compensation claims to be submitted before the adjudicating officer in the following situations, the complaint shall be in Form N along with a fee of Rs. 1000/- in the form of DD in favour of the ‘Kerala Real Estate Regulatory Authority’ payable at Thiruvananthapuram
28. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 – FILING OF COMPLAINTS AND CLAIMSFor getting cheated due to wrong / misleading materials in advertisements / brochures / prospectus / notice.Deviations by the Promoter from the sanctioned Plans/Permits and failing to cure the defects within 5 years periodFailure to complete construction and give possession as per the provisions of agreement / due to any other reasons.Aggrieved due to defective title of land of the Promoter.For the delay / failure from the part of the buyer / allottee in payment as per the provisions of agreement / failure to take possession of unit / failure to participate in the formation of association or registration of deeds
29. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 – FILING OF COMPLAINTS AND CLAIMSSeveral complaints related to the same project/promoter maybe clubbed and heard jointlyAppeals against the orders of Authority / Adjudicating officer shall be to the Kerala Real Estate Appellate TribunalComplaints shall be filed in Triplicate along with sufficient copies to be served to the respondents.Complaints shall be submitted either in person or through an authorised representative or by post.In the hearings of the Authority / Adjudicating Officer, parties may appear in person or through a legal practitioner or an authorised representative.
30. Adjudgment of Compensation under sections 12, 14, 18 and section 19 (Section 71)Authority shall appoint in consultation with the appropriate Government one or more judicial officer as deemed necessary, who is or has been a District Judge to be an adjudicating officerSection 12 – Allottee makes an Advance or a Deposit for an apartment, plot or building based on an AdvertisementSection 14 – Promoter makes any major changes in the Approved Plans without the consent of two-third of the AllotteesSection 18 – Promoter fails to give possession of an apartment, plot or building as per dates specified in the Agreement for sale with Allottee or the Promoter discontinues his business on account of suspension or revocation of Registration Section 19 – Rights of Allottees to Obtain all information and details about plans and claim possession as promised in the Agreement for saleAllottees need to Withdraw any cases pending before Consumer Disputes Redressal ForumApplication for Adjudging Compensation shall be disposed within 60 days of the date of receipt if not disposed the reason thereof to be recorded in writingDirect to pay such compensation or interest as deemed fit
31. K- RERA - OFFENCES AND PENALTIESSL NO.OFFENCEPENALTY1Non-registration of projectsUp to 10% of estimated cost of Real estate projectAnd for continuing offence, imprisonment up to 3 years or with fine or both - compoundable with 10% of estimated cost of the real estate project.2Promoter provides false/ misleading information during registration.Up to 5% of estimated cost of Real estate project3Promoter violates any other provision of actUp to 5% of estimated cost of Real estate project
32. K- RERA - OFFENCES AND PENALTIES4Non-registration of real estate agentsRs. 10,000 every day of default maximum up to 5% of the cost of plot apartment or building.5Promoter failing to comply orders of AuthorityPenalty for every day of default up to 5 % of estimated cost of Real estate project.6Promoter failing to comply directions of Appellate TribunalFine every day up to 10% of estimated cost of the real estate project AND/ OR up to 3 years imprisonment-compoundable with 10% of estimated cost of the real estate project.7Real Estate agent fails to comply with the directions of AuthorityFine for every day of default up to 5 % of estimated cost of the plot, apartment or building.
33. K- RERA - OFFENCES AND PENALTIES8Real Estate Agent failing to comply with the order of Appellate TribunalFine for every day up to 10% of estimated cost of the plot, apartment or building as the case may be AND/ OR up to 1 year imprisonment-compoundable with 10% of estimated cost of the plot, apartment or building.9Allottee failing to comply with the order of AuthorityFine for every day of default up to 5% of estimated cost of the plot, apartment or building.10Allottee failing to comply with the order of Appellate TribunalFine for every day of default up to 10% of estimated cost of the plot, apartment or building AND / OR up to 1 year imprisonment - compoundable with 10% of estimated cost of the plot, apartment or building.
34. FUNCTIONS OF STATE REAL ESTATE REGULATORY AUTHORITYtake a decision on applications for registration of projects / real estate agents within 30 days of receipt of application.dispose of all the complaints within 2 months.ensure transparency in the real estate sector by making available all the publishable information relating to promoter / project / real estate agents through the web portal of the authority.will enhance awareness on the rights of allottees, responsibility of builders and real estate agents, to make the real estate industry customer friendly.protect the interest of the allottees, promoter, and real estate agent.encourage investments in real estate sector, which will create more jobs.advise the state government on all issues with the real estate sector.establish conciliation fora with the representatives of consumers association, promoters association and the authority as envisaged under the act.
35. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 THANK YOU CA SEETHARAMAN KC G NATESAN & CO CHARTERED ACCOUNTANTS KOCHI kochi@gnatesanandco.com www.gnatesanandco.com Tel : 4049468/4049469 Mobile : +919447159171