Real Estate (Regulation

and Development) Act,

2016
 Features of The Real Estate (Regulation And
Development) Act, 2016 –
• Establish the Real Estate Regulatory Authority (RERA) for regulation and promotion of the real estate sector
• Ensure sale of plot, apartment of building or sale of real estate project, in an efficient and transparent manner
• Ensure protection the interest of consumers in the real estate sector
• Establish an adjudicating mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear
appeals from the decisions
• Regulates transactions between buyers and promoters of residential real estate projects
• • Residential real estate projects, with some exceptions, need to be registered with RERAs
• • Promoters cannot book or offer projects for sale without registering them.
• • Real estate agents dealing in these projects also need to register with RERAs
• • Amount collected from buyers for a project must be maintained in a separate bank account and must only be used
for construction of that project.
• • Right to Legal Representation on behalf of client by Company Secretaries or chartered accountants or cost
accountants or legal practitioners
• • Imposes stringent penalty on promoter, real estate agent and also prescribes imprisonment
Advantages of RERA (Real Estate
Development and Regulation Act)

Customer Timely completion

Increased FDI
management of the project

Reduction in
Project planning Transparency
litigation
Important Definitions

• 1) Allottee –
• “Allottee” in relation to a real estate project, means the person to whom a plot, apartment or building, has
been allotted, sold (whether as freehold or leasehold) or 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) Apartment –
• “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;
 Explanation.— For the purpose
of this clause, the expression
“exclusive balcony or verandah
area” means the area of the
(k) “carpet area” means the net
balcony or verandah, as the
(j) “building” includes any usable floor area of an
case may be, which is
structure or erection or part of apartment, excluding the area
appurtenant to the net usable
a structure or erection which is covered by the external walls,
floor area of an apartment,
intended to be used for areas under services shafts,
meant for the exclusive use of
residential, commercial or for exclusive balcony or verandah
the allottee; and “exclusive
the purpose of any business, area and exclusive open
open terrace area” means the
occupation, profession or terrace area, but includes the
area of open terrace which is
trade, or for any other related area covered by the internal
appurtenant to the net usable
purposes; partition walls of the
floor area of an apartment,
apartment.
meant for the exclusive use of
the allottee;
 (i) the entire land for the real
(ii) the stair cases, lifts,
estate project or where the
staircase and lift lobbies, fire
project is developed in phases
(n) “common areas” mean— escapes, and common
and registration under this Act
entrances and exits of
is sought for a phase, the entire
buildings;
land for that phase;

(iv) the premises for the lodging

(v) installations of central
of persons employed for the
(iii) the common basements, services such as electricity,
management of the property
terraces, parks, play areas, gas, water and sanitation, air-
including accommodation for
open parking areas and conditioning and incinerating,
watch and ward staffs or for the
common storage spaces; system for water conservation
lodging of community service
and renewable energy;
personnel;

(viii) all other portion of the

(vi) the water tanks, sumps,
(vii) all community and project necessary or
motors, fans, compressors,
commercial facilities as convenient for its
ducts and all apparatus
provided in the real estate maintenance, safety, etc., and
connected with installations
project; in common use;
for common use;
 (zf) “occupancy certificate” means the
(q) “completion certificate” means the
occupancy certificate, or such other
completion certificate, or such other
certificate, by whatever name called,
certificate, by whatever name called,
issued by the competent authority
issued by the competent authority
permitting occupation of any building, as
certifying that the real estate project has
provided under local laws, which has
been developed according to the
provision for civic infrastructure such as
sanctioned plan, layout plan and
water, sanitation and electricity;
specifications, as approved by the
competent authority under the local laws;
• (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;
• (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 person who sells apartments or plots are different person, 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;
• (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 a 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;
• (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 apartments, 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;
• (zq) “sanctioned plan” means the site plan, building plan, service plan,
parking and circulation plan, landscape plan, layout plan, zoning plan
and such other plan and includes structural designs, if applicable,
permissions such as environment permission and such other
permissions, which are approved by the competent authority prior to
start of a real estate project;
REGISTRATION
OF REAL ESTATE
PROJECT AND
REGISTRATION
OF REAL ESTATE
AGENTS S.3
S.5
S.7
 CHAPTER III- DUTIES OF PROMOTER
• Functions and Duties of Promoter –
• 1) Creating website –
• After receiving his Login Id and password, promoter shall create his web page on the website of
• the Authority and enter all details of the proposed project for public viewing.
• Information shall include –
• a) details of the registration granted by the Authority;
• b) quarterly up-to-date the list of number and types of apartments or plots, as the case may
• be, booked;
• c) quarterly up-to-date list of the number of garages booked;
• d) quarterly up-to-date list of approvals taken and the approvals which are pending subsequent
to commencement certificate;
• e) quarterly up-to-date status of the project; and
• f) such other information and documents as may be specified by the regulations made by the
• Authority.
• 2) Provide information to Allottee –
• The promoter at the time of the booking and issue of allotment
letter shall be responsible to
• make available to the allottee, the following information –
• a) sanctioned plans, layout plans, along with specifications,
approved by the competent authority, by display at the site or such
other place as may be specified by the regulations made by the
Authority;
• b) the stage wise time schedule of completion of the project,
including the provisions for civic infrastructure like water,
sanitation and electricity.
3) Other important functions –
• a) To be responsible for all the compliances under the Act.
• b) Responsibility to obtain the completion certificate or the occupancy certificate;
• c) Responsibility to obtain the lease certificate, where the real estate project is developed on a
leasehold land and make lease certificate available to the association of allottees;
• d) Responsibility for providing and maintaining the essential services, on reasonable charges, till
the taking over of the maintenance of the project by the association of the allottees.
• e) enable the formation of an association or society or co-operative society of the allottees.
• f) To execute a registered conveyance deed of the apartment, plot or building in favour of the
• allottee.
• g) To pay all outgoings until he transfers the physical possession of the real estate project to the
allottee or the associations of allottees which he has collected from the allottees, for the payment
of outgoings.
• h) Not to create mortgage after the promoter executes an agreement for sale for any apartment,
plot or building.
• If any such mortgage or charge is made or created then notwithstanding anything contained in any
other law for the time being in force, it shall not affect the right and interest of the allottee who has
taken or agreed to take such apartment, plot or building
S.14(3)
S.15
S.16
S.17
S.18
S.19
CHAPTER V- RERA