All about The Real Estate Act, 2016

INTRODUCTION:

This Act come into force  on 1st May, 2017 as per Central Government notification in the Official  Gazette April, 2017.

This Act applicable in whole of India except Jammu and Kashmir. This act is useful for consumer to protect interest in real estate sector, timely delivering project and easily resolved dispute from adjudicating authority.

The real estate project includes development of building, apartments, land into plots or apartments/ existing building into apartments.

Every promoter is required to registration of real estate project with the authority under the Real estate Regulation and development Act, 2016. All ongoing projects which have not received completion certificate will need to register within 3 months of the Commencement of this act.

Promoters are not required to registrations of the real estate project If the land size area is does not exceed 500 sq. meters and/or no of apartments does not exceed 8, Renovation /Re-pair/Re-development, promoter already received commencement certificate prior to the commencement of this act.

Different Important Roles play in RERA that is PROMOTER, ALLOTTEE, REAL ESTSTE AGENT, ARCHITECT, ENGINEER, PRACTICING CHARTERD ACCOUNTANT.

IMPORTANT  ASPECTS FROM  PROMOTER:

No Promoter shall advertise, market, book, sell or offer for sale or invite person to purchase in any manner plot, apartment or building or any other real estate project without registering the real estate project with the authority.

While the registering project promoter should disclose all the details in the application form of project from starting of the project till the receiving of completion certificate.

Responsibility of promoter that 70% of the amount realized for the project from the allottees, shall be deposited  in a separate account to be maintained with schedule bank to cover cost of construction and land cost shall be used for that purpose.

Promoter should not withdrawn any amount from the separate account till the certified by an engineer, an architect and a chartered accountant that the withdrawal is in proportion to the percentage of completion of the project.

Promoter is required to get his account audited within six months in every financial year from PRACTICING CHARTERED ACCOUNTANT.

If the promoter provides false information or contravention any provision of section 4 he shall be liable to a penalty which may extend upto 5% of the estimated cost of the real estate project.

REGISTRATION PROCESS UNDER RERA:

1. Applicant has to file an application for registration with  RERA  in prescribed form with fees.

2. Application for registration either approved or rejected by the authority within 30 days from the receipt of the application.

3. On successful registration the promoter of the project will be provided registration No, login id and password.

4. Promoter  shall enclose following details with the application:-

• A brief  Details  of  enterprise  name, Registered address, types of the enterprise, name and photograph of the promoter.
• Details of the project launched in last 5 years including current project, in case any of the pending project, type of land and payment pending.
• Certified true copy of the commencement certificate from appropriate authority.
• Layout plan- whole project and each sanctioned phase by appropriate authority.
• Development work plan and proposed facility.
• Location of the detailed project.
• Allotment letter, agreement for sale, conveyance deed proposed to be signed with allottees.
• Number and the carpet area of apartments in the project.
• Name and address of the real estate agent if any of the proposed project.
• Name and address of the contractor, architecture, structural engineer or any other person for the concerned of this project.
• A declaration supported by an affidavit, and signed by the promoter or any other person authorized by the promoter.

ROLE OF PRACTICING COMPANY SECRETARY:

A Company Secretary is one such professional who is responsible  for valuable/efficient management in the corporate sector. He is play vital role in the advisory to the board of directors, compliance under various law and Registration process. Apart from this given advice in finance, legal, accountant, secretarial, personal and administrative function of all the public and private sector of the company.

1. Financial Advisory services
2. Registration and extension procedure of real estate project with competent authority
3. Taxation aspect of real estate of project
4. Drafting various documents, relating to projects
5. Issue certificate relating compliance of corporate governance
6. Legal & Regulatory Compliance
7. Funding option of real estate project
8. Due-diligence report for bank
9. Various function, Obligation, duties, responsibility in the real estate project  towards promoters
10. To explain various applicable provision under real estate project.
11. Represent before any real estate regulatory authority for real estate project or real estate appellate tribunal.

The author can also be reached at yashreedixit19@gmail.com