The document outlines the Real Estate (Regulation and Development) Act, 2017 in India. Some key points: - The Act was passed by the Lok Sabha in March 2016 and most sections were notified and came into effect in May 2017. - It establishes the Real Estate Regulatory Authority (RERA) to regulate and promote the real estate sector, ensuring transparent and efficient transactions. - It defines provisions for registration of real estate projects and real estate agents. Promoters must make certain disclosures and deposit a portion of funds in a separate escrow account. - It defines rights of allottees and obligations of promoters, such as handing over possession in a timely manner, obtaining all approvals, and

1. .REAL ESTATE
(REGULATIONS &
DEVELOPMENT) ACT,2017
Prepared by :-
CS Lokesh Shah
CS Binny Porwal

3. 15th
March,2016
25th
March,2016
1st
May,2016
31st
Oct,2016
April ,
2017
Bill passed by Lok Sabha
President of India accorded his assent to the Bill
69 sections of 92 of the Real Estate Act notified and comes into effect.
Formation of Rules (Section 84)
Establishment of Real Estate Regulatory Authority (RERA) and Real Estate
Appellate Tribunal (REAT) (Section 43)

5. 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 and 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 and the adjudicating officer and for matters connected therewith or
incidental thereto.

6.  The Act prohibits unaccounted money from being pumped into the sector.
 As now, 70 per cent of the money has to be deposited in bank accounts through cheques leading to
restrict on diversion of funds.
 Sale on Carpet Areas. Carpet area has been clearly defined in the Act to include usable spaces like
kitchen and toilets but excludes Balcony and Varandas.
 Timely Delivery of Project or payment of the interest at the specified rates.
 Structural Warranty for 5 years after handing over project.

7. Chapter-1.
Prelimina
ry Section
1-2.
Chapter-
2.
Reg. of
Projects
and
Agents
Section
3-10.
Chapter
-3.
Functio
ns and
Duties
of
Promot
ers
Section
11-18.
Chapter
-4.
Rights
and
Duties
of
Allottee
s
Section
19
Chapter
-5.
The
Real
Estate
Regulat
ory
Authori
ty
Section
20-40.
Chapter
-6.
Central
Advisor
y
Council
Section
41-42.
Chapter
-7.
The
Real
Estate
Appella
te
Tribuna
l
Section
43-58.
Chapter
-8.
Offence
s,
Penalti
es and
Adjudic
ations
Section
59-72
Chapter
-9.
Finance
,
Account
s,
Audits
and
Reports
Section
73-78
Chapter-
10.
Miscella
neous
Sections
79-92.

8. Central Government
R E R A
Developer Broker / AgentApprovals / Registrations to be obtained
Setting - up
Directions for
implementation of Real
Estate Act, consumer
protection etc.
State Government
Central Government
Central Advisory Council
AMC/Local Authority

9.  Rules:
Gujarat Real Estate (Regulation and Development) (General) Rules, 2017.
 Authority:
Urban Development AND Urban Housing Department, Sachivalaya, Gandhinagar.
 Effective Date:
1st May, 2017.

10.  development of a building or a building consisting of apartments,
 converting an existing building or a part thereof into apartments,
 development of land into plots or apartment,
 for the purpose of selling all or some of the said apartments or plots or building.

11. PromoterPromoter
Any other person who acts himself as
a builder, contractor, developer or
claims to be acting as the holder of a
power of attorney from the owner of
land
Such other person who constructs any
building or apartment for sale to
general public
A Person who Constructs
or causes to be
constructed a Building for
the purpose of selling
State level co-operative
housing society and a
primary Co-operative
housing society
Any Development authority or
any other public body
A Person who develops land into
a project for the purpose of
selling with or without structure
thereon

12. Carpet Area – Section 2(k)
The net usable floor area of an apartment, excluding
The area covered by the external walls,
Areas under services shafts,
Exclusive balcony or verandah area,
Exclusive open terrace area.
For the purpose of this clause, the expression "exclusive balcony or verandah
area" means the area of the balcony or verandah, as the case may be, which is
appurtenant to the net usable floor area of an apartment, meant for the
exclusive use of the allottee; and "exclusive open terrace area" means the area
of open terrace which is appurtenant to the net usable floor area of an
apartment, meant for the exclusive use of the allottee.

13. Compulsory registration for all the real estate project except:
i) Area of Development does not exceed 500 Sq Meters OR
Number of Units does not exceeds 8 inclusive of all phases.
ii)Project Which has received Completion Certificate (BU Permission) as on 1st May, 2017.
iii)Renovation, Repair or Redevelopment not resulting into selling of any new apartment,
Plot or Building.
 Every Phase is a Standalone real estate Project and required to be registered separately.
 Existing Projects are required to be registered within 3 months. i.e. on or before 31st July,
2017..

14.  Application to disclose:
 Declaration in Form B.
 Estimated cost of Project (calculated as per Rule (6) and certified by a Chartered
Accountant.)
 Details of the Proposed Project like approvals obtained, sanction plan, layout
plan, development plan to be executed etc.
 Details of bank account to be utilized for the project.
 KYC, IT Returns and Audited Balance Sheets of Promoters for last 3 years.
 Details of projects launched in last five years, Execution details and cases pending
if any.
 Details of Professionals and persons associated with the Project.
 Draft of Agreement for Sell, Allotment Letter and Conveyance Deed to be
executed. (Model Agreement for sale as per Rule 9)
 Details of Real Estate Agents if any.
Promoter files an
Application
RERA processes the
same within 30 days
Failure leads to
Deemed Registration
Grant of Registration
Number with Online
Login id and Password
Update Project Details

15.  Application is to be made in Form – A in Triplicate.
Fees Structure:
 Validity Period: Time for completion of project mentioned in form B.
 Withdrawal of Application: 10% of Fees or Rs. 50,000 whichever is more will be retained as processing
fees. [Rule 3 (5)]
Particulars of the
Project
Area of Development
<=1000
Area of Development >
1000
Maximum
Group Housing Project Rs. 5 per SM Rs. 10 per SM Rs. 5 Lakh.
Mixed Development Rs. 10 per SM Rs. 15 per SM Rs. 7 Lakh
Commercial Project Rs. 20 per SM Rs. 25 per SM Rs. 10 Lakh
Plotted Development Rs. 5 per SM Rs. 2 Lakh.

16. • Legal title to the land proposed to be developed with details.
• Land is free from all encumbrances and details.
• Time period to complete the project.
• 70% of the amounts realized 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.
• Amount to cover the cost of construction will be withdrawn in proportion to the percentage of completion of the
Project after professional certification.
• Promoter shall get the accounts audited within six months from the end of the financial year.
• Undertake to take all the pending Approvals on time from the competent authorities.
• He has furnished such other documents as may be prescribed by the rules or regulations made under this Act.
Declaration
by
Developer
(Form B)
• Maximum advance / application fee that can be received by the Promoter, prior to executing a written
agreement for sale is 10% of the cost of the apartment.
• Mandated to deposit the funds collected in separate bank account and allowed to be Withdrawn only
after certification from an engineer, architect and a chartered accountant in practice certifying the
withdrawal is proportionate to the percentage of completion of project
• Accounts of promoter needs to be audited within 6 months of the Financial Year end.
• Over leveraging up to 30 percent only.
Restrictions
on usage of
Funds.

17.  “Real Estate Agent" means any person, who negotiates or acts on behalf of one person in a
transaction of transfer of his plot, apartment or building, as the case may be, in a real estate
project, by way of sale, with another person or transfer of plot, apartment or building, as the
case may be, of any other person to him and receives remuneration or fees or any other
charges for his services whether as commission or otherwise and includes a person who
introduces, through any medium, prospective buyers and sellers to each other for negotiation
for sale or purchase of plot, apartment or building, as the case may be, and includes property
dealers, brokers, middlemen by whatever name called.
 Compulsory Registration with RERA.
 Maintain and Preserve books of Accounts, Records and Documents.
 Shall not involve in Unfair Trade Practices
 Facilitate the possession of all information and documents to the Allottee.
 Failure to register attracts Penalty of Rs.10,000 for every day up to 5% of cost of apartment.

18. Application
Form G in triplicate.
Registration Fees:
Individual: 10,000.
Others: 50,000.
Validity:
5 years.
Renewal:
form J in Triplicate
before three months of expiry of the Registration certificate
for the next five years.
Renewal Fees:
Individual: 5,000.
Others: 25,000.
 Name, Address and Type of Entity.
 Registration Certificate if any.
 Constitution Documents (MOA, AOA of the
Company/ LLP Agreement/ Partnership
Agreement etc.)
 Name, Address, Contact Details and
Photographs of the
Partners/Directors/Proprietor.
 Self Certified Copy of PAN Card and Address
Proofs of the Entity.
 Self Certified copies of Letterhead,
Acknowledgement Receipt and Rubberstamp
proposed to be used.
 Brief Description of Majority Activities.
 Last Three Years IT Returns or Self Declaration
if exempted.
 Details of Registration under any other State or
Union Territory
Documents required

19.  Give accurate and Correct information in advertisement and prospectus.
 Execute and Register Agreement for Sale of unit before taking advance or collections
in excess of 10 percent.
 Develop the project as per Sanctioned plans and Specification.
 Transfer of Project is possible only with the prior approval of authority. And written
consent of 2/3rd of allottees excluding promoters.
 Take Insurance of Title of land and Building which are part of project and
Construction of real estate project.
 Obtain Occupancy Certificate from Local Authority, Execute the conveyance deed to
allottees within three months thereof and Handover possession allottees.

20.  Right of information in relation to promoter and real estate project.
 Right to receive Completion Certificate/Occupancy certificate.
 Right to remedy of approaching RERA against wrongful cancellation of allotment by promoters.(Builders and
Developers).
 Right to claim compensation or interest from promoters for breaches of agreement of sale.
 Right to withdraw from the project and claim return of investment with interest and compensation in case of false
advertisement or non fulfillment of any conditions mentioned in the agreement.
 Right to claim compensation from the promoters in case of loss caused to allottees due to defective title.
 Right to execution of Agreement for Sale, before payment of 10 % of cost of flat/ apartment/ gala/land etc.

21.  Right to statutory remedy of filing compliant with adjudication authorities for enforcement of rights
 Right to execution of registered conveyance deed by the promoters
 Right to physical possession
 Right against alteration of project without their consent.
 Right against transfer or assignment of project by the promoters to third party without consent of
allottees or association of allottees Right to charge same rate of interest for default in payment as
promoters will be charges in case of breach of any clauses of the Agreement of Sale.

22.  Responsibility to pay interest for delay in payment according to Agreement of Sale;
 Responsibility to participate in formation of Association of Allottees;
 Responsibility to take physical possession of the apartment, plot or building as the case
may be, within a period of two months of the issue of Occupancy certificate;
 Responsibility in participating in execution & registration of conveyance deed;
 Responsibility to pay penalty for breach of any order of the Competent Authority;

23.  Specify the particulars of development of the project including the construction of
building and apartments, along with specifications and internal development works
and external development works,
 The dates and the manner by which payments towards the cost of the apartment,
plot or building, as the case may be, are to be made by the allottees and
 The date on which the possession of the apartment, plot or building is to be handed
over,
 The rates of interest payable by the promoter to the allottee and the allottee to the
promoter in case of default

24. If any promoter contravenes the provisions of registration under Section 3 - liable to
penalty up to 10% of the estimated cost of project as determined by the Authority.
If any promoter provides false information or contravenes the provisions of
registration of real estate projects under section 4 - penalty up to 5% of the estimated
cost of the project.
If any promoter contravenes any other provisions of the Real Estate Act - penalty up
to 5% of the estimated cost of the project as determined by the Authority.
If any promoter does not comply with the orders, decisions or directions issued or
continues to violate the provisions of registration under section 3 - imprisonment up to 3
years or with fine up to 10% of the estimated cost of the project, or with both.

25. • Default in the requirements of the Act.
• Violates terms and conditions of the approval given by any competent
authority.
• Unfair Practices or Irregularities.
• Opportunity of being heard within 30 days.
Revocation of
Registration
• Debar the promoter from accessing Website.
• Listing of developers as defaulters.
• Freezing bank account.
• Inform RERA in other states/UTs about revocation.
• Handover of the development to association of allottees/competent
authorities upon consultation with relevant state government.
Consequences
of Revocation

26. Section 3
Registration
of RE Project
with RERA
Section 4
Withdrawal
Certification
based on POC.
Section 56
Representation
Services
Section 4
Audits
(Statutory
and Internal)
and IFCs.

27.  Emphasis on timely completion and
delivery of RE Projects.
 Increased quality of Construction –
defect liability for 5 years.
 Sale on carpet area basis and
balanced builder-buyer agreement
will improve transparency in pricing
and bring in standardization.
 More regulated sector will attract
more investments.
 Greater visibility into developers
track records and delivery
performance.
 Multiple Authority Approvals.
 Delay in Project launches.
 Increased Cost due to increased
compliance cost.
 Reduce Competition.
 Greater liquidity constraints on
developers will impact New
Developers entry and subsequent
expansion and project cost.
 Multiple forums for dispute
resolution of grievances (Consumer
Forums, CCI, Consumer Courts).

28. No Civil Court shall have jurisdiction to entertain any Suit or proceeding in respect of
any matter which the authority or the adjudicating officer or the Appellate Tribunal is
empowered by or under this Act to determine and no injunction shall be granted by any Court
or other authority in respect of any action taken or to be taken in pursuance of any power
conferred by or under this Act.
Bar of jurisdiction

29. Lokesh Shah
Company Secretary and Trademark Attorney
226, Devashish Arcade, Opp. Gurudwara,
Odhav. Ahmedabad. Gujarat - 382415.
(M) + 91 8000647068
cslokeshshah@gmail.com
Any Questions ??
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Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or
that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough
examination of the particular situation