RERA CHECK LIST I : GUIDE TO BUYERS/ALLOTTEES

Transcription

1 Contents RERA CHECK LIST I : GUIDE TO BUYERS/ALLOTTEES u Check List 1.1 : Booking of a plot/flat/shop I-25 u Check List 2.1 : Allotment letter I-36 u Check List 3.1 : Agreement for Sale/Builder-Buyer Agreement I-38 u Check List 4.1 : Progress Payments in accordance with AFS I-42 u Check List 5.1 : Possession & Conveyance Deed I-46 u Check List 6.1 : Rights and Obligations of Allottees (Buyers) I-51 u Check List 7.1 : Remedies for grievances I-78 RERA CHECK LIST II : GUIDE TO PROMOTERS u Check List 8.1 : Promoter I-99 u Check List 9.1 : Real Estate Project I-101 u Check List 10.1 : Do s and Dont s for Promoters I-104 u Check List 11.1 : Procedure for registration of real estate projects I-120 u Check List 12.1 : Disclosure on Promoter s webpage on website of Authority I-144 u Check List 13.1 : Publication/Advertisement/Prospectus I-152 u Check List 14.1 : Deposit of 70% of amounts realised from allottees in separate bank account I-153 u Check List 15.1 : Obligations and Responsibilities of Promoters I-161 u Check List 16.1 : Punishment and Penalty on Promoters for Non-compliances I-174 u Check List 17.1 : Filing/defending of complaints and appeals by promoters I-178 I-9

2 CONTENTS I-10 RERA CHECK LIST III : REAL ESTATE AGENT u Check List 18.1 : Real Estate Agent I-191 u Check List 19.1 : Registration of Real Estate Agent & Renewal of Registration I-193 DIVISION ONE GUIDE TO REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, WHEN ACT IS APPLICABLE 1.1 Backdrop 3 1.1A Date of enforcement Salient features of the Act Act applies to Real Estate Projects and to Promoters (builders), Allottees (Buyers) and Real Estate Agents Aims and Objects of the Act Applicability of the Act to ongoing projects as at the commencement of the Act Applicability of the Act to disputes of real estate sector pending in consumer forum 14 2 TERMINOLOGY 2.1 Adjudicating officer Advertisement Agreement for sale Appellate Tribunal Appropriate Government Architect Authority Apartment Immovable property 18

3 I-11 CONTENTS 2.10 Building Real estate project Development Development works External development works Internal development works Carpet area Chairperson Commencement certificate Common areas Company Competent authority Completion certificate Day Engineer Estimated cost of real estate project Family Garage Prospectus Local authority Member Notification Occupancy certificate Person Planning area Prescribed Project Regulations Rule Sanctioned plan Words and expressions used but not defined 25

4 CONTENTS I-12 DIVISION TWO BUYERS OF PLOTS, FLATS OR SHOPS IN REAL ESTATE PROJECTS 3 STEP-BY-STEP GUIDE TO BUYERS FOR BOOKING FLAT/PLOT/SHOP IN BUILDER S PROJECTS 3.1 Allottee (buyer) Step-by-step Guide to buyers (allottees) Rights of Allottees (Buyers) 38 4 PRE-BOOKING HOMEWORK BY BUYERS (LOOK BEFORE YOU BOOK) 4.1 Right to obtain Information at the time of booking and issue of allotment letter [Section 11(3); section 19(1); section 19(2)] Right to transfer of title insurance and other insurances at the time of entering into agreement for sale [Section 16(1) to (3)] Information required to be stated in AFS Obtain draft AFS format of the builder/developer 44 5 IN WHOSE NAME TO BOOK FLAT/PLOT/SHOP 5.1 Provisions of the Benami Act, HOW TO PAY THE BOOKING AMOUNT? 6.1 Requirements of Income-tax Act, Requirements of Model Agreement for Sale Net position that emerges from Income-tax Act, 1961 and Model AFS-Booking amount may be paid in cash upto ` 19,999 83

5 I-13 CONTENTS 6.4 What % of cost of flat/plot/shop can be demanded by builder as booking amount? Total Cost/Total price Deduction of 88 7 ENTERING INTO AN AGREEMENT FOR SALE 7.1 Entering into written AFS in prescribed format is mandatory What if provisions in any prior document (application form/ allotment letter) is contrary to terms of model AFS? Can these be enforced against the buyer? 90 8 RIGHTS OF BUYER (ALLOTTEE) UNDER ACT AND MODEL AFS 8.1 Total Price payable by buyer to be clearly mentioned in AFS and shall be escalation-free except for increase in statutory development charges Total price to be escalation-free same and except increases in development charges, cost or charges by competent authorities Buyer not liable for any new imposition or increase in development charges after expiry of scheduled date of completion of project Additional payment/refund for changes in carpet area applicable in case of an apartment Allottee s exclusive rights to plot/apartment/shop under Model/AFS Right to remedy of approaching RERA against wrongful cancellation of allotment by the promoter Meaning of wrongful cancellation of amount Right to claim compensation from promoter for breaches of agreement for sale [Section 14(3); section 18; section 19(4)] Right to withdraw from project and claim compensation and interest [Section 12; section 18(1); section 19(4)] Right to claim compensation for loss caused by defective title [Section 18(2)] 100

6 CONTENTS I Right to transfer of title insurance and other insurances at the time of entering into agreement for sale [Section 16(1) to (3)] Right to statutory remedy of filing complaint with RERA/ Adjudicating Authority Right to execution of registered conveyance deed [Section 17(1)] Right to possession [Section 17(1); section 18(1); section 19(3); Section 19(10)] Right to necessary documents and plans after handing of physical possession [Section 17(2); section 19(5)] Right to lease certificate [Section 11(4)(c)] Right to documents of insurance [Section 16] Right against alterations to project without consent [Section 14(2)] 104A 8.15 Right against transfer of assignment of project to third party without consent [Section 15] 104B 8.16 Right to complete the project where promoter s registration lapses or is revoked [Section 8] 104C 8.17 Allottee s rights in case of builder s default 104D 9 RESPONSIBILITIES/DUTIES OF ALLOTTEES 9.1 Responsibility to make necessary payments Responsibility to pay interest for delay in payment Obligations to make payment or to pay interest can be reduced by mutual agreement Responsibilities to participate in formation of association/ society Responsibilities to take possession within two months of issue of occupancy certificate Responsibilities to participate in registration of conveyance deed Penalty for failure to comply with orders of Authority by allottee Penalty for failure to comply with orders of Appellate Tribunal by allottee 108

7 I-15 CONTENTS DIVISION THREE BUILDER/DEVELOPER/PROMOTER 10 FUNCTIONS AND DUTIES OF PROMOTER (I.E. BUILDER/DEVELOPER) 10.1 Definition of Promoter Functions & duties of promoter at a glance Do s and Dont s for the promoter (i.e. builder or developer) Advertisement, booking, sale of real estate projects not allowed without first registering the project Exemption from registration What about real estate projects in areas which are not planning areas? Whether real estate projects which are ongoing at the commencement of the Act require registration REGISTRATION OF REAL ESTATE PROJECTS 11.1 Procedure for registration of real estate projects Documents required to be enclosed with application for registration Application for registration to be made in Form A in triplicate Registration fees to be paid at the time of application for registration Online web-based registration Grant of registration Extension of registration Revocation of registration Obligation of Authority consequent upon lapse of or on revocation of registration [Section 8] 138

8 CONTENTS I DISCLOSURE ON PROMOTER S WEB ON AUTHORITY S WEBSITE 12.1 Creation of Promoter s webpage on website of Authority PUBLICATION/ADVERTISEMENT/PROSPECTUS 13.1 Issue of Publication of advertisement/prospectus by the Promoter [Section 11(2)] Promoter responsible for veracity of the advertisement or prospectus [Section 12] AGREEMENT FOR SALE IN PRESCRIBED FORMAT 14.1 Booking amount - Deposit or advance exceeding 10% not to be accepted without first entering into an agreement for sale [Section 13(1)] Agreement for sale - In standard form Cancellation of allotment to be strictly as per terms of agreement for sale Return of amount and compensation for failure to give possession in accordance with agreement for sale No charge or mortgage to be created on the apartment, plot or building after execution of an agreement for sale ACCEPTING BOOKINGS/PAYMENTS 15.1 Mode of acceptance of monies from allottees - Only by crossed account payee cheque or DD or through net banking or otherwise through banking channels - Section 269SS of Income-tax Act, Information to be made available to the allottee at the time of booking and issue of allotment letter 155

9 I-17 CONTENTS 16 DEPOSIT OF 70% OF AMOUNTS REALISED FROM ALLOTTEE IN SEPARATE BANK ACCOUNT 16.1 Deposit of 70% of amounts realised from allottees in separate bank account and getting utilisation audited and certified Deposit of 70% in respect of ongoing projects No need for prior permission from any authority to withdraw from the separate account Certification of withdrawal (pre-withdrawal certification) by practicing CA, Engineer and Architect Separate account, not escrow account OBLIGATIONS & RESPONSIBILITIES OF PROMOTERS 17.1 Responsibility to obtain and provide completion certificate and occupancy certificate Responsibility to obtain and provide the lease certificate Responsibility to maintain essential services till taking over by association of allottees Promoter s responsibilities for formation of association of allottees Responsibilities of promoter till the execution of conveyance deed in favour of allottees Promoter s responsibilities till the handing over of possession Adherence to sanctioned plans and project specifications by the promoter Title Insurance Obligations of promoter in case of transfer of a real estate project to a third party Execution of conveyance deed and handing over of possession to allottee Handing over documents and plans 166

10 CONTENTS I PUNISHMENTS/PENALTIES FOR NON-COMPLIANCES BY PROMOTER 18.1 Punishment for non-registration Penalty for contravention of section Penalty for contravention of other provisions of this Act Penalty for failure to comply with orders of Authority by promoter Penalty for failure to comply with orders of Appellate Tribunal by promoter Compounding of offences by court Offences by companies 170 DIVISION FOUR REAL ESTATE AGENT 19 REAL ESTATE AGENT 19.1 Real Estate Agent Only registered real estate agents can facilitate sale/purchase of plot or apartment in registered real estate projects Registration of real estate agents Registration number to be quoted in every sale facilitated by the real estate agent Validity period and renewal of registration Revocation or suspension of registration of a real estate agents Functions of real estate agents Penalty for non-registration and contravention under sections 9 and Penalty for failure to comply with orders of Authority by real estate agent Penalty for failure to comply with orders of Appellate Tribunal by real estate agent Offences by companies 178

11 I-19 CONTENTS DIVISION FIVE ADJUDICATION, COMPLAINTS AND APPELLATE REMEDIES 20 ADJUDICATION OF COMPENSATION BY ADJUDICATING OFFICER 20.1 Compensation or claims of buyers against builders Adjudication of compensation and interest claims by adjudicating officer Factors to be considered while adjudging compensation or interest claims Pending claims before consumer forum as at commencement of the Act AUTHORITIES UNDER THE ACT 21.1 Establishment and incorporation of Real Estate Regulatory Authority (RERA) Vacancies, etc., not to invalidate proceeding of Authority Filing of complaints with the Authority or the adjudicating officer Functions of Authority for promotion of real estate sector Advocacy and awareness measures Functions of Authority Powers of Authority to call for information, conduct investigations Power to issue interim orders Powers of Authority to issue directions Powers of Authority Rectification of orders Recovery of interest or penalty or compensation and enforcement of order etc Establishment of Central Advisory Council Functions of Central Advisory Council Establishment of Real Estate Appellate Tribunal Application for settlement of disputes and appeals to Appellate Tribunal 198

12 CONTENTS I Power of Appellate Tribunal to entertain belated appeals Appeals - How to be disposed of by the Appellate Tribunal Revision of orders of RERA/Adjudicating Officer by the Tribunal Powers of Tribunal Right to legal representation Orders passed by Appellate Tribunal to be executable as a decree Appeal to High Court Bar of jurisdiction Power of authority to delegate 204 DIVISION SIX REAL ESTATE RULES u u u u u u Maharashtra Real Estate (Regulation and Development) (Recovery of Interest, Penalty, Compensation, Fine Payable, Forms of Complaints and Appeal, etc.) Rules, Maharashtra Real Estate (Regulation and Development) (Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and Disclosures on Website) Rules, National Capital Territory of Delhi Real Estate (Regulation and Development) (General) Rules, National Capital Territory of Delhi Real Estate (Regulation and Development) (Agreement for Sale) Rules, Chandigarh Real Estate (Regulation and Development) (General) Rules, Chandigarh Real Estate (Regulation and Development) (Agreement for Sale) Rules, DIVISION SEVEN REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 u Real Estate (Regulation and Development) Act, APPENDIX u Relevant sections of Income-tax Act,