u The Act has come into force from 1 May 2016.
u This Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 sqm, or 8 apartments, to register with Real Estate Regulatory Authority (RERA). For failure to register, penalty up to 10% of project cost or 3 years imprisonment may be imposed. No promoter can advertise, market, book, sell or offer for sale, or invite persons to purchase any plot, apartment or building, in any real estate project, without registering with RERA.
uThe promoter shall create his web page on the website of the Authority and enter all details of the proposed project, for public viewing, including details of registration, quarterly up-to-date list of number & types of apartments or plots & garages booked, quarterly up-to-date the list of approvals taken and the approvals which are pending, quarterly up-to-date status of the project; etc.
u Promoter cannot accept sum more than 10% of cost of apartment, plot, or building, as advance payment or application fee, from a person without first entering into a written agreement for sale & register the said agreement for sale, under any law for the time being in force.
u 70% of amounts realised from allottees, from time to time, to be deposited in separate account maintained in scheduled bank and shall be used only to cover the cost of construction, land cost. Provided that the promoter shall withdraw the amounts from the separate account, in proportion to the percentage of completion of the project. Further amounts shall be withdrawn after it is certified by an engineer, an architect and a CAin practice. Also promoter shall get his accounts audited within 6 months after the end of every financial year by a CA in practice.
