Impact Of Rera On Builders/Promoter
1. No Real Estate promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project.
2. A promoter cannot even market or advertise the project without registration. This means there cannot be pre launching or pre booking for project which can be a big financial issue for some.
3. No Real Estate promoter can accept more than 10% of sales consideration for the buyer without getting into an Agreement of sale.
4. 70% of the amounts realized for the real estate project from the allottees has to be kept in a separated Bank account to cover the cover the cost of construction and the land cost and shall be withdrawn only after getting a signed certified by an engineer, an architect and a chartered accountant in practice.
5. Get his accounts audited within six months after the end of every financial year by a chartered Accountant in practice and shall produce a statement of accounts duly certified and signed. Fact that the amounts collected for a particular project has been utilized for the project and the withdrawal has been in compliance with the proportion to the percentage of completion of the project, has to be audited by a chartered Accountant in practice along with other compliances.
6. The promoter may cancel the allotment only in terms of the agreement for sale: Provided that the allottee may approach the Authority for relief, if he is aggrieved by such cancellation and such cancellation is not in accordance with the terms of the agreement for sale, unilateral and without any sufficient cause..
7. The Promoter has statutory duty to operate with in various time frames, he shall ensure timely Completion of the project, and completion certificate is obtained, occupancy certificate and forming a Residential welfare society and handing over possession of common area to it.
8. Online Web page has to be maintained with RERA regarding project and has to be updated.
9. Quarterly filing with RERA for every project along with Annual Filing.
10. Promoters are required to provide and maintain the essential services at a reasonable cost, until the association of the allottees take over the project.
11. The promoter is vested with the responsibility of enabling the formation of an association, society or co-operative society of the allottees or a federation of the same under the applicable laws. In the absence of local laws, the association of allottees must be formed within three months of the majority of allottees having booked their plot, apartment or building in the project
12. After executing an agreement for sale of any real estate property, no mortgage or creation of charge must be made on such real-estate property. Even if this stipulation is breached, the right and interest of the allottee shouldn’t be at stake.
13. The promoter must pay all outgoings until he/she transfers the physical possession of the real estate project to the allottee or the association of allottees, which includes ground rent, land cost, maintenance charges, etc. If the promoter fails to pay all or any of the outgoings to the allottees or the association of allottees, then he/she continues to be liable even after the transfer
