Registration of Real Estate Project by Promoter : Conditions

By | June 12, 2016

Registration of Real Estate Project by Promoter under

REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016

Registration of Real Estate Project by Promoter

Condition for registration of Real Estate Project :-[section 3(2)]

  • where the area of land proposed to be developed does exceed 500 square meters or the number of apartments proposed to be developed  exceed 8 inclusive of all phases, then the promoter has to do Prior registration of real estate project with Real Estate Regulatory Authority.
  •   where the promoter has not received completion certificate for a real estate project prior to commencement of this Act;
  •   In case of existing promoter who have undertaken the work of  renovation or repair or re-development which involve marketing, advertising selling or new allotment of any apartment, plot or building, as the case may be, under the real estate project.

Note : where the real estate project is to be developed in phases, every such phase shall be considered a stand alone real estate project, and the promoter shall obtain registration under this Act for each phase separately.

Condition when the registration of Real Estate Project is not required :-[ section 3(2)]

No registration of the real estate project shall be required :-

(a)          where the area of land proposed to be developed does not exceed five hundred square meters or the number of apartments proposed to be developed does not exceed eight inclusive of all phases :

Provided that, if the appropriate Government considers it necessary, it may, reduce the threshold below five hundred square meters or eight apartments, as the case may be, inclusive of all phases, for exemption from registration under this Act;

(b)          where the promoter has received completion certificate for a real estate project prior to commencement of this Act;

(c)          for the purpose of renovation or repair or re-development which does not involve marketing, advertising selling or new allotment of any apartment, plot or building, as the case may be, under the real estate project.

Explanation.—For the purpose of this section, where the real estate project is to be developed in phases, every such phase shall be considered a stand alone real estate project, and the promoter shall obtain registration under this Act for each phase separately.

Time limit for registration of Real Estate Project :

  • For New projects that satisfy registration required :- Prior registration of real estate project with Real Estate Regulatory Authority
  • Projects that are ongoing on the date of commencement of this Act and for which the completion certificate has not been issued the promoter shall make an application to the Authority for registration of the said project within a period of three months from the date of commencement of this Act :

Documents for registration of Real Estate Project :- [Section 4(2)]

The promoter shall enclose the following documents along with the application  :-

(a)          a brief details of his enterprise including its name, registered address, type of enterprise (proprietorship, societies, partnership, companies, competent authority), and the particulars of registration, and the names and photographs of the promoter;

(b)          a brief detail of the projects launched by him, in the past five years, whether already completed or being developed, as the case may be, including the current status of the said projects, any delay in its completion, details of cases pending, details of type of land and payments pending;

(c)          an authenticated copy of the approvals and commencement certificate from the competent authority obtained in accordance with the laws as may be applicable for the real estate project mentioned in the application, and where the project is proposed to be developed in phases, an authenticated copy of the approvals and commencement certificate from the competent authority for each of such phases;

(d)          the sanctioned plan, layout plan and specifications of the proposed project or the phase thereof, and the whole project as sanctioned by the competent authority;

(e)          the plan of development works to be executed in the proposed project and the proposed facilities to be provided thereof including fire fighting facilities, drinking water facilities, emergency evacuation services, use of renewable energy;

(f)           the location details of the project, with clear demarcation of land dedicated for the project along with its boundaries including the latitude and longitude of the end points of the project;

(g)          proforma of the allotment letter, agreement for sale, and the conveyance deed proposed to be signed with the allottees;

(h)          the number, type and the carpet area of apartments for sale in the project along with the area of the exclusive balcony or verandah areas and the exclusive open terrace areas apartment with the apartment, if any;

(i)           the number and areas of garage for sale in the project;

(j)           the names and addresses of his real estate agents, if any, for the proposed project;

(k)          the names and addresses of the contractors, architect, structural engineer, if any and other persons concerned with the development of the proposed project;

(l)           a declaration, supported by an affidavit, which shall be signed by the promoter or any person authorised by the promoter, stating:—

(A)          that he has a legal title to the land on which the development is proposed along with legally valid documents with authentication of such title, if such land is owned by another person;

(B)          that the land is free from all encumbrances, or as the case may be details of the encumbrances on such land including any rights, title, interest or name of any party in or over such land along with details;

(C)         the time period within which he undertakes to complete the project or phase thereof, as the case may be;

(D)         that seventy per cent of the amounts realised for the real estate project from the allottees, from time to time, shall be deposited in a separate account to be maintained in a scheduled bank to cover the cost of construction and the land cost and shall be used only for that purpose :

               Provided that the promoter shall withdraw the amounts from the separate account, to cover the cost of the project, in proportion to the percentage of completion of the project :

               Provided further that the amounts from the separate account shall be withdrawn by the promoter after it is certified by an engineer, an architect and a chartered accountant in practice that the withdrawal is in proportion to the percentage of completion of the project :

               Provided also that the promoter shall 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 by such chartered accountant and it shall be verified during the audit that the amounts collected for a particular project have been utilised for the project and the withdrawal has been in compliance with the proportion to the percentage of completion of the project.

               Explanation.— For the purpose of this clause, the term “schedule bank” means a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);

(E)          that he shall take all the pending approvals on time, from the competent authorities;

(F)          that he has furnished such other documents as may be prescribed by the rules or regulations made under this Act; and

(m)   such other information and documents as may be prescribed.

Meaning of Promoter :-

As per Section 2(zk) “promoter” means,—

(i)           a person who constructs or causes to be constructed an independent building or a building consisting of apartments, or converts an existing building or a part thereof into apartments, for the purpose of selling all or some of the apartments to other persons and includes his assignees; or

(ii)          a person who develops land into a project, whether or not the person also constructs structures on any of the plots, for the purpose of selling to other persons all or some of the plots in the said project, whether with or without structures thereon; or

(iii)         any development authority or any other public body in respect of allottees of—

(a)          buildings or apartments, as the case may be, constructed by such authority or body on lands owned by them or placed at their disposal by the Government; or

(b)          plots owned by such authority or body or placed at their disposal by the Government,             for the purpose of selling all or some of the apartments or plots; or

(iv)         an apex State level co-operative housing finance society and a primary co-operative housing society which constructs apartments or buildings for its Members or in respect of the allottees of such apartments or buildings; or

(v)          any other person who acts himself as a builder, coloniser, contractor, developer, estate developer or by any other name or claims to be acting as the holder of a power of attorney from the owner of the land on which the building or apartment is constructed or plot is developed for sale; or

(vi)         such other person who constructs any building or apartment for sale to the general public.

Explanation.—For the purposes of this clause, where the person who constructs or converts a building into apartments or develops a plot for sale and the persons who sells apartments or plots are different persons, both of them shall be deemed to be the promoters and shall be jointly liable as such for the functions and responsibilities specified, under this Act or the rules and regulations made thereunder;

 

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