An end to end presentation for Promoters,builders,buyers and their rights and duties under RERA Act.

2. THE REAL ESTATE (REGULATION AND
DEVELOPMENT) ACT, 2016
An Act to establish the Real Estate Regulatory
Authority for regulation and promotion of the real
estate sector
• to ensure sale of plot, apartment or building, as the
case may be, or sale of real estate project, in an
efficient and transparent manner
• to protect the interest of consumers in the real
estate sector
• to establish an adjudicating mechanism for speedy
dispute redressal
• to establish the Appellate Tribunal to hear appeals
from the decisions, directions or orders of the Real
Estate Regulatory Authority

3. THE REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016
CHAPTER I – Preliminary
CHAPTER II – Registration of Real Estate Project and Registration of
Real estate Agents
CHAPTER III – Functions and Duties of Promoter
CHAPTER IV – Rights and Duties of Allottees
CHAPTER V – The Real Estate Regulatory Authority
CHAPTER VI – Central Advisory Council
CHAPTER VII – The Real Estate Appellate Tribunal
CHAPTER VIII – Offences,Penalities and Adjudication
CHAPTER IX – Finance, Accounts, Audits And Reports
CHAPTER X – Miscellenous

4. REGISTRATION OF REAL ESTATE PROJECT –SEC 3
-No promoter shall advertise, market, book, sell or offer for sale without
registering the real estate project with the Real Estate Regulatory
Authority established under this Act.
- Provided that projects that are ongoing on the date of commencement
of this Act (01-05-2017) shall make an application within a period of three
months.
- No registration of the real estate project shall be required
a) area of land proposed to be developed does not exceed 500 sq.mts
or the number of apartments proposed to be developed does not
exceed 8 inclusive of all phases.
b) 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 selling or new allotment of any apartment.

5. Registration Procedure of Real estate project –Rule 3 of
APRERA RULES,2017
1) Form A – Online Application for Registration of Projects by Promoter.
2) withdrawal of application for registration possible before the expiry
of of 30 days
3) Every promoter shall make separate application for registration of
every project for the construction of each phase, separate building or
group of buildings in case of Layout.
4) Contents of Application – Form A
5) Certificate of Registration in Form - C, within (30) working days from
the date of receiving the application for the registration and authority
will provide login ID and a Password.
6) Deemed Registration within period of 7 days if registration certificate
not issued within mentioned 30 working days.

6. Declaration, supported by affidavit, by promoter in Form B
-he has legal title to the land on which the development is proposed
-the land is free from all encumbrances
-the time period within which he undertakes to complete the project
-that seventy percent of the amounts realised for the real estate
project from the allottees, from time to time, shall be deposited in a
separate account o cover the cost of construction and land cost
-the time schedule for connecting the building in which the apartment
is proposed to be sold like electricity,water supply e.t.c.,
-nature of the fixtures and fittings with regard to the flooring and
sanitary fittings and the provision of one or more lifts to be provided
-particulars and numbers of firefighting facilities, drinking water
facilities, emergency evacuation services e.t.c.,
-the promoter shall give an undertaking to the effect that he shall
submit statement of Accounts duly certified and signed by the
Chartered Accountant and it shall be verified during the audit
-take all the pending approvals from the competent authorities
-details of insurances obtained by the promoter regarding title and
construction of the project

7. Extension of registration:
The registration granted under section 5 may be extended by the Authority on
application(Form E) made by the promoter due to “force majeure”
the expression "force majeure" shall mean a case of war, flood, drought, fire,
cyclone, earthquake or any other calamity caused by nature affecting the
regular development of the real estate project
Revocation of registration (Form D):
The Authority may, on receipt of a complaint or suo motu in this behalf or on the
recommendation of the competent authority, revoke the registration if
-promoter makes default in doing anything required by or under this Act
-violates any of the terms or conditions of the approval given by
the competent authority
-promoter is involved in any kind of unfair practice or irregularities
-the promoter permits the publication of any advertisement whether in any
newspaper or otherwise of services that are not intended to be offered.
-falsely represents that the services are of a particular standard or grade
-represents that the promoter has approval or affiliation which such
promoter does not have.
-makes a false or misleading representation concerning the services

8. Registration procedure of real estate agents
-No real estate agent shall facilitate sale or purchase of or act on behalf of
any person to facilitate the sale or purchase of any plot, apartment without
obtaining registration under this act.
-Form G – Online Application for Registration of real estate agent
-grant a single registration to the real estate agent for the entire State of Union
territory, as the case may be in Form H
-Registration number shall be quoted by the real estate agent in every sale
facilitated by him under this Act.
-Registration shall be valid for such period as may be prescribed and Renewal
can be done by applying through Form J
- Revocation of registration of Real estate agent if commits breach of any of
the conditions thereof or any other terms and conditions specified
under this Act or any rules or regulations made through intimation
in Form I.

9. Functions of real estate agents
Every real estate agent registered under section 9 shall
(a) not facilitate the sale or purchase of any plot, apartment or
building in a real estate project being sold by the promoter which
is not registered with the Authority.
(b) maintain and preserve such books of account, records and
documents
(c) not involve himself in any unfair trade practices
(d) facilitate the possession of all the information and
documents, as the allottee, is entitled to, at the time of booking
of any plot, apartment or building
(e) discharge such other functions as may be prescribed.

10. FUNCTIONS AND DUTIES OF PROMOTER
1) The promoter shall, upon receiving his Login Id and password
provide for public viewing
(a) details of the registration granted by the Authority
(b) quarterly up-to-date the list of number and types of apartments or
plots
(c) quarterly up-to-date the list of number of garages booked;
(d) quarterly up-to-date the list of approvals taken and the approvals
which are pending subsequent to commencement certificate;
(e) quarterly up-to-date status of the project.
2) The advertisement or prospectus issued or published by the promoter
shall mention the registration number.
3) The promoter at the time of the booking and issue of allotment letter
shall be responsible to make available to the allottee
a) sanctioned plans, layout plans, along with specifications, approved
by the competent authority
b) the stage wise time schedule of completion of the project,
including the provisions for civic infrastructure like water, sanitation and
electricity.

11. (4) The promoter shall-
(a) be responsible for all obligations, responsibilties and functions under the
provisions of this Act.
The responsibility of the promoter, with respect to the structural
defect or any other defect shall continue for 5 years even after the conveyance
deed of all the apartments, plots or buildings.
(b) be responsible to obtain the completion certificate or the occupancy
certificate, or both, as applicable, from the relevant competent authority
(c) be responsible for providing and maintaining the essential services, on
reasonable charges, till the taking over of the maintenance of the project by the
association of the allottees;
(d) enable the formation of an association or society or co-operative society
(f) execute a registered conveyance deed in favour of the allottee along with the
undivided proportionate title in the common areas
(e) pay all outgoings until he transfers the physical possession of the real estate
project to the allottee which he has collected from the allottees, for the payment of
outgoings(including land cost, ground rent, municipal or other local taxes, charges for
water or electricity, maintenance charges e.t.c)
(5)The promoter may cancel the allotment only in terms of agreement for sale

12. Obligations of promoter regarding veracity of advertisement or
prospectus:
-Where any person makes an advance or a deposit on the basis of
advertisement or prospectus and sustains any loss or damage by reason
of any incorrect, false statement he shall be compensated.
-Provided that if the person affected by such incorrect, false statement
contained in advertisement he shall be returned his entire investment
along with interest.
No deposit or advance to be taken by promoter without first
entering into agreement for sale:
-A promoter shall not accept a sum more than ten per cent of the cost
of the apartment, plot, or building without first entering into a written
agreement for sale.
-Default in payment by allottees-Interest payable as per time mentioned
in agreement of sale.
-Default in handling over of possession-Interest payable by Promoter.

13. Adherence to sanctioned plans and project specifications by promoter :
- the promoter shall not make any additions and alterations in the sanctioned
plans without the previous consent of that person
- Minor changes or alterations as may be necessary due to architectural and
structural reasons duly recommended is possible.
- any other alterations or additions in the sanctioned plans within the project can
be done with the previous written consent of at least two-thirds of the allottees,
other than the promoter.
- In case any structural defect or any other defect in workmanship, quality or provision
of services or any other obligations of the promoter within a period of five years it
shall be the duty of the promoter to rectify such defects without further charge.
Obligations of promoter regarding insurance of real estate project:
-The promoter shall obtain all such insurances as may be notified by the
appropriate Government, including but not limited to insurance in respect of
i) title of the land and building as a part of the real estate project; and
(ii) construction of the real estate project.
- The promoter is liable to pay the premium & charges in respect of the insurance
- The insurance shall stand transferred to the benefit of the allottee or the association
of allottees.
- On formation of the association of the allottees, all documents relating to insurance
shall be handed over to the association of the allottees

14. Transfer of title :
1) The promoter shall execute a registered conveyance deed in favour of the
allottee along with the undivided proportionate title in the common areas to the
association of the allottees provided under the local laws.
In the absence of local law conveyance deed be executed with in 3 months from
date of issue of Occupancy certificate.
2)After obtaining the occupancy certificate and handing over physical possession
to the allottees it should be responsibility of promoter to hand over necessary
documents as per local laws provides.
In the absence of local law within 30 days after obtaining occupancy certificate.
Return of amount and compensation :
- If Promoter fails to complete or is unable to give possession of an
apartment, plot or building
a) in accordance with terms of agreement of sale, or
b) due to discontinuance of business as a builder or revocation of registration
he shall be liable on demand to allottees such compensation with interest.
- promoter shall compensate the allottees in case of any loss caused to him due
to defective title of the land.
- If the promoter fails to discharge any other obligations imposed on him
he shall be liable to pay such compensation

15. RIGHTS AND DUTIES OF ALLOTTEES :
The allottee shall be entitled
1) to obtain the information relating to sanctioned plans, layout plans along with
the specifications.
2) to know stage-wise time schedule of completion of project, including
provisions for water, sanitation, electricity and other amenities.
3) to claim the possession of apartment, plot or building
4) to claim the refund of amount paid along with interest at such rate as
may be prescribed if the promoter fails to comply or is unable to give
possession of the apartment, plot or building
5)Every allottee, who has entered into an agreement for sale to take an
apartment, plot or building shall pay at the proper time and place, the
share of the registration charges, municipal taxes, water and electricity
charges, maintenance charges, ground rent, and other charges.
6) The allottee shall be liable to pay interest for any delay in payment
towards any amount or charges to be paid.
7) Every allottee shall participate towards the formation of an association
of the allottees.
8) Every allottee shall take physical possession of the apartment,
Plot within a period of two months of the occupancy certificate.

16. OFFENCES, PENALTIES AND ADJUDICATION :
1) Punishment for non registration -- penalty which may extend up to 10% of
the estimated cost of the real estate project.
2) promoter does not comply with the orders, decisions or directions issued or
continuous violation—Imprisonment upto 3 years or 10% of estimated cost or
both.
3) promoter provides false information or contravenes the provisions of section
4--extend up to 5% of the estimated cost of project.
4) Penalty for contravention of other provisions of this Act- extend up to 5% of
the estimated cost of project.
5) Penalty for failure to comply with orders of Authority by promoter -extend up to
5% of the estimated cost of project.
6) Penalty for failure to comply with orders of Appellate Tribunal by promoter -
extend up to 10% of the estimated cost of project or imprisonment upto 3
years or both.
7) If any allottee, who fails to comply with, or contravenes any of the orders,
decisions or directions of the Authority-5% of plot , apartment or building.
8) If any allottee, who fails to comply with, or contravenes any of the orders,
decisions or directions of the Appellate Tribunal -10% of plot , apartment or
building (or) imprisonment upto 1 year or with both.

17. Separate account to be maintained to cover the cost of
construction of the project and the land cost
1) 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 of the project and the land cost.
2) Promotor to file declaration in Form B That the amounts from the
separate account, to cover the cost of the project, shall be withdrawn
in proportion to the percentage of completion of the project.
3) That the amounts from the separate account shall be withdrawn after
it is certified by an engineer, an architect and a chartered accountant
in practice.
4) Form 1-Architect certificate
Form 2-Engineers certificate
Form 3-Chartered Accountants certificate
5) Land cost shall be the cost incurred by the promoter, whether as
an outright purchase, lease charges etc.
Construction cost shall be the cost incurred by the promoter,
towards the on-site expenditure for the physical development of
project.

18. Submission of statement of Accounts duly certified and signed by the
Chartered Accountant :
1) The promoter shall give an undertaking in Form B to the effect that he
shall submit statement of Accounts duly certified and signed by the
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 incompliance with the proportion
to the percentage of completion of the project.
2) FORM ‘Q’ - ANNUAL STATEMENT OF ACCOUNTS
3) Promoter shall get the 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

19. Role of Chartered Accountant in “THE Real Estate (Regulation And
Development) Act”,2016 And “Andhra Pradesh Real Estate
(Regulation and Development) Rules”, 2017
1) Certification by an chartered accountant in practice that the withdrawal
is in proportion to the percentage of completion of the project through
Form 3.
2) Statement of accounts duly certified, audited and signed by chartered
accountant in practice through Form Q.
3) Right to legal representation in case before the Appellate Tribunal or the
Regulatory Authority or the adjudicating officer.
4) Disclosure of Name of Project Chartered Accountant at the time of
Application for Registration of the Project.
5) General roles like registration for RERA project, Real estate Agent and
enabling various stakeholders to comply with Act and Rules.

20. Presented
BY
S Sanyasi Rao
Mail: sanyasiraos365@gmail.com
Phone:9603041367