Key Features of RERA ACT 2016
Registration - Every promoter shall register Real Estate projects with K-RERA before advertising/ marketing/ booking/ selling/ offer for sale. Projects which are ongoing as of 1st May 2017 are also registrable. Registration is required for projects where the area of land proposed to be developed exceeds five hundred square meters or the number of apartments proposed to be developed exceeds eight even if the land area proposed to be developed is below 500 sq. m. Any Real Estate Agent who facilitates the sale or purchase of such Real Estate projects should also register with the Authority. The registration, which is online, requires uploading of all documents including land details, permits, project plans, layout, specifications, NOCs, details of the promoter, project completion date, etc. These reports and details are in the K-RERA web portal thereby ensuring transparency and enable the buyers to make an informed decision. All the advertisements, and marketing/ publicity materials of the project should display the RERA registration number.
Designated Account - The promoter shall transfer 70% of the amount received from the allottees for the project in a separate account. Amount from that account can be withdrawn only based on a certificate of progress by an Engineer, Architect, and Chartered Accountant. This ensures that no funds are misappropriated/ diverted.
Monitoring by RERA - The Authority is empowered to monitor the Real Estate Projects through quarterly project reports, annual audit reports, and if necessary, through inspection. These details are in the K-RERA web portal which is available through public search.
Dispute Resolution - The Authority is also empowered to resolve disputes between buyers, developers, and agents through a quasi-judicial proceedings by issuing enforcible orders and directions. Any aggrieved person can file a complaint with the Authority or the Adjudicating Officer against any promoter, allottee, or Real Estate Agent for any violation or contravention of provisions of the Act, Rules, and Regulations.
Imposition of Penalty - The Authority is empowered to impose a penalty through a quasi-judicial proceedings, if any promoter, allottee, or Real Estate Agent violates provisions of the Act, Rules, or Regulations, which may extend up to 10% of the project’s estimated cost in case of non-registration of the projects, upto 5% of the project cost for other violations.
Allottees’ Association - The promoter shall facilitate the formation of a Registered Allottees’ Association once 50% of the units are booked. Once the project is completed the promoter shall transfer all the common areas to the Registered Association. The Registered Association shall take care of the maintenance and management of the common areas in the future.