Real Estate(Regulation and Development) Act, 2016 received the assent of the President on 25th March 2016,
✔which substantially amends the original Real Estate Bill, 2013. This act will apply from a date to be notified in official gazette.
✔The Act largely seeks to protect the interest of the allottees/purchasers by promoting transparency,
accountability and efficiency in the construction and execution of real estate projects by promoters.
Key Highlights of Real Estate Act, 2016 are given below: -
🔵Registration
Every promoter shall register every real
estate project with
Estate Regulatory Authority established under this Act except where the area of land proposed to be developed does not exceed 500 square meters or the number of proposed apartments does not exceed 8 (All phases).
✔ Promoters cannot advertise or sell any plot or apartment in any real estate project without registration.
✔No registration is required if completion certificate is received for a project before commencement of this Act. In case of ongoing projects, the promoter shall register the project within a period of 3 months from the date of commencement of this Act.
✔All real estate agents shall also get registered with the Authority. Every registered real estate agent shall be granted a registration number by the Authority, which shall be quoted by the real estate agent in every sale facilitated by him.
🔵Obligation
✔70% of the amounts realised for the real estate project from the allottees 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.
✔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.
✔The amounts from the separate account shall be withdrawn only after it is certified by an engineer, an architect and a CA in practice that the withdrawal is in proportion to the percentage of completion of the project.
✔A promoter cannot accept more than 10% of the cost of the apartment as an advance or application fee from any person without entering into a written agreement for sale with such person.
✔The agreement for sale shall specify the all particulars of development of the project like dates by which payments towards the cost of the apartment are to be made by and the possession date & the rates of interest etc.
✔The proposed project shall be developed and completed by the promoter in accordance with the sanctioned plans and specifications as approved by the competent authorities.
✔which substantially amends the original Real Estate Bill, 2013. This act will apply from a date to be notified in official gazette.
✔The Act largely seeks to protect the interest of the allottees/purchasers by promoting transparency,
accountability and efficiency in the construction and execution of real estate projects by promoters.
Key Highlights of Real Estate Act, 2016 are given below: -
🔵Registration
Every promoter shall register every real
estate project with
Estate Regulatory Authority established under this Act except where the area of land proposed to be developed does not exceed 500 square meters or the number of proposed apartments does not exceed 8 (All phases).
✔ Promoters cannot advertise or sell any plot or apartment in any real estate project without registration.
✔No registration is required if completion certificate is received for a project before commencement of this Act. In case of ongoing projects, the promoter shall register the project within a period of 3 months from the date of commencement of this Act.
✔All real estate agents shall also get registered with the Authority. Every registered real estate agent shall be granted a registration number by the Authority, which shall be quoted by the real estate agent in every sale facilitated by him.
🔵Obligation
✔70% of the amounts realised for the real estate project from the allottees 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.
✔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.
✔The amounts from the separate account shall be withdrawn only after it is certified by an engineer, an architect and a CA in practice that the withdrawal is in proportion to the percentage of completion of the project.
✔A promoter cannot accept more than 10% of the cost of the apartment as an advance or application fee from any person without entering into a written agreement for sale with such person.
✔The agreement for sale shall specify the all particulars of development of the project like dates by which payments towards the cost of the apartment are to be made by and the possession date & the rates of interest etc.
✔The proposed project shall be developed and completed by the promoter in accordance with the sanctioned plans and specifications as approved by the competent authorities.
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