Rule No. 4 Disclosure by promoter of ongoing real estate projects: –
- The promoter shall be required to register the ongoing projects within 3 months from the date of commencement of Sec. 3 of the Act
Rule No. 4, paragraph 2:- at the end of ninety days from the date of notification of section 3 of the Act, the promoter shall not advertise, market, book, sell offer for sale or invite persons to purchase in any manner any plot, apartment or building unless he registers such independent phase as a separate project.
Section 3:- Prior registration of real estate project with RERA:-
- No promoter shall advertise, market, book, sell offer for sale or invite persons to purchase without registering the project with the RERA.
- Ongoing project – within three months from the date of commencement of this act.
- Project beyond planning area- require permission from local authority – may be direct the promoter to register the project under RERA
Under Rules:- Explanations
- Phase of the project:- building or buildings of the project not recived CC
- CC – issued by competent authority by or under the provisions of Mah. Regional Twon Planning Act, 1966
- The promoter shall disclose all details of ongoing project
- The extent of development carried out till date as per the last approved sanction plan
- Extent of development of common area, amenities etc. completed in respect of building along with expected period of completion of ongoing project
- The original time period disclosed to the allottee at the time of sale including the delay if any and the time period within which he undertakes to complete the pending work, with completed development of the project.
- Architect certificate for Completed work
- Engineer’s certificate for estimated balance cost to complete the construction of each building or wing in the project
- CA’s certificate for estimated balance cost to complete the construction the project
- CA’s certificate for balance amount of receivables from sold or allotted or in respect of which the agreements have been executed.
- Estimated amount of receivables in respect of unsold flats calculated at the prevailing ASR on the date of certificate.
- Rule 2 (e) ASR “Annual Statement of Rates” means the rate of land and building for different users and as notified under the provisions of the Mah. Stamp Rules 1995
- The promoter shall disclose the number of sold flats with size of flats based on carpet area even if the flats are sold earlier on any other basis.
- The promoter shall construct and develop the project in accordance with sanctioned plan and layout plans and specifications as approved by the Authorities.
- Provided that the promoter will be entitled to aggregate any contiguous land parcel through acquisition of ownership and title
- or by receiving development permission, including for re-development project and may also obtain phase-wise approvals from the relevant competent authorizes to sanctioned plan under applicable laws, rules and regulations
- provided also that written consent of 2/3rd allottees may not be necessary for implementation of proposed plans / specifications as disclosed in the agreements which are already executed or any direction or order issued by any authority.
Rule No. 5Withdrawal of amounts deposited in separate account.
- For New projects
(a) Section 4(2)(1) (D) :- 70% amount realized for the project from the allottees shall be deposited in a separate account to be maintained in a schedule bank to cover the cost of construction and the land cost and shall be used only for the purpose,
Provided that the promoter shall withdraw the amount from the separate account- to cover the cost of project – in proportion to the % of completion of the project
Provided further that the amount should be certified by an engineer, and architect and CA
Section 2(U) “Engineer” means a person who possesses a bachelor’s degree or equivalent from an institution recognized by All India Council of Technical Education or any institution recognized under a law or is registered as an engineer under any law for the time being in force.
(b) Withdrawals to cover cost of the project – promoter shall submit three certificate
– The project Architect- % of completion of construction work
– Engineer- actual cost incurred on the construction work
– CA – for cost incurred on construction cost and land cost
– for the proportion of the cost incurred on construction cost and land cost to the total estimated cost of the project
– This procedure needs to follow for every withdrawal.
– On receipt of completion certificate – entire balance amount lying in the account can be withdrawn
– What about JV projects?
2. Ongoing projects
– 70% amount realized for the project from the allottees shall be deposited in a separate account
– Provided further that, in the event where the estimated receivables of the ongoing project is less than estimated cost of completion of the project, then 100%of the amount to be realized from the allottees shall be deposited in the separate account
Explanation I: –
Land cost include: –
- cost incurred for acquisition of ownership includes its lease, charges, overhead cost, marketing cost, legal cost and supervision cost
- Premium payable to obtain development or redevelopment rights
- Amount paid for acquisition of TDR
- Premium for grant of FSI
- Consideration payable to the outgoing developer to relinquish the ownership and title rights over such land
- Amount payable under stamp duty, transfer charges, registration fees etc.
- ASR linked premiums payable by any promoter as per requirement of any law, rules or regulations for obtaining right for redevelopment of lands owned by public authorities,
Explanation II: –
Where the promoter not required to incur any cost towards land acquisition – land cost is reckoned as per ASR
Explanation III: –
- Cost incurred by the promoter, tower the on-site and off-site expenditure
- Payment of taxes, fees, charges, premiums, interest etc.
- Principal sum of interest paid or payable to any financial institutions including schedule bank or non-banking financial companies or money lenders
- But shall not include the sum which raised and incurred by way of loan obtained from such banks, non-banking financial companies or money lenders for the purpose of purchase of land for the project or for obtaining the development rights over such land.
Explanation IV: –
For rehabilitation scheme
Rule No. 6 Grant or rejection of registration of the project
Section 5:- grant of registration:-
- On receipt of the application authority shall within a period of thirty days,
– Grant registration
– Reject registration
– No application shall be rejected unless the applicant has been given an opportunity of being head in the matter.
2. If authority fails to grant or reject the application, the project shall be deemed to have been registered. The authority shall within seven days after expiry of the thirty days provide a login ID and password and registration number.
3. The registration granted shall be valid for a period declared by the promoter for completion of project
Section 4(2)(1) (c) the time period within which he undertakes to complete the project or phase thereof as the case may be.
a. Grant of Registration of the project: –
The period of registration shall exclude such period where actual work could not be carried by the promoter or injunction orders or due to such mitigating circumstances.
Provided that, while deciding on such mitigating circumstances, the authority shall give opportunity of hearing allottees or person having int. in the project.
b. Rejection of Registration of the project: –
No application shall be rejected unless the promoter has been given adequate opportunity of being heard.
Rule No. 7 Extension of registration of the Real estate project
1. An application for extension- with an explanatory note – grounds and reasons for delay in completion – fees – Rs. 10/- per sq. mtrs- minimum 50,000/- – maximum 10 lakhs
– Provided that where extension of project is due to force majeure – authorities’ discretion to waive the fee
Section 6:- on application by promoter due to Force Major, authority may grant extension … not more than one year
No application shall be rejected unless the applicant has been given an opportunity of being head in the matter.
2. The application shall be accompanied with fees calculated on the area of land proposed.
Rule No. 8 Revocation of Registration
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Rule No. 9 Formation of legal entity and transfer of title:-
1. Promoter to enable formation of legal entity
I] Where any legal entity is to be constituted for single building or in case of layout of more than one building or a wing – promoter shall submit the application within 3 months – from the date of which 51% of total number of allottees have booked their apartments.
II] Where a promoter is required to form an Apex Body either as a federation or any other legal entity – then the promoter shall submit an application- within 3 months from the date of the receipt of the occupation certificate of the last building which was to be constructed in the layout.
2. Promoter to convey title under Section 17 of the Act
Section 17 Transfer of title: –
- Promoter shall register conveyance deed within 3 months from the date of occupation certificate.
- Pay all outgoings, taxes, levies, maintenance charges etc till the conveyance of the property
- Conveyance to be done within 1 month from registration of association of allottees or 3 months from the date of OC whichever is earlier.
– Promoter shall carry out conveyance within 3 months from- allottees have paid full consideration
– If no period is agreed then – within 3 months from the date of issue of OC or 51% of total number of allottees have paid the full consideration, whichever is earlier.
– Period for conveyance in case of layout: –
A] In case of building in layout – If no period is agreed- promoter shall convey – excluding right of unsold apartments, podium and basement- within one month from society registration or within 3 months from OC whichever is earlier.
b} In case of layout- where the land underneath is undivided or inseparable – If no period is agreed- promoter shall convey – all buildings jointly or within three months from registration of Apex body or Federation or within 3 months from the date of issue of OC to the last building – whichever is earlier.
3. If promoter fails- Authority shall by an order direct the promoter to convey the title
4. The society or legal entity also entitled to have unilateral deemed conveyance as per MOFA, 1963.
Provided that, after conveyance promoter have right to enter, sold, advertise and market the project without any restriction.
Provided that, promoter shall be permitted to enter in common areas and discharge his obligation as mentioned in Section 14(3).
Section 14(3) in case of a structural defect or defect in workmanship, quality or provision of services or obligations as per ATS – within 5 yrs from hand over of the project to society – promoter shall rectify the defect within 30 days without any charge – if promoter fails aggrieved allottees is entitled for compensation
Provided also that, in respect of re-development- conveyance shall be done as per the relevant law applicable
5. The promoter upon receiving registration under RERA – obtain insurance as per Section 16 and handover all documents to society.
Section 16, Insurance: –
- Do insurance for title, building and construction
- Promoter is liable to pay premium till handover and transfer documents to the Association of allottees.
- All documents relating to insurance shall be handover to association.
Rule No. 10 Agreement for Sale: –
- Promoter can modify the model agreement
- Any application letter or allotment letter or any other document shall not restrict the right and interest of an allottees under ATS
Section 13, Agreement for Sale: –
- Promoter can take 10% of the agreement value before registration of the Agreement for Sale
- Mention following in the Agreement for Sale –
– Amenities of the project
– Specifications of the apartment
– Payment schedule
– Date of possession
– Interest in case of delay
Rule 18 Rate of interest payable by the promoter and the allottees
- The interest rate payable by promoter or allottees shall be State Bank of India – highest Marginal cost of lending rate plus two per cent
- Provided that the State Bank of India Marginal cost- replaced by any benchmark lending rate – which State Bank of India may fix from time to time
Rule 19 Timelines for refund
- Refund payable by promoter to allottees – within 30 days – along with applicable interest and compensation
