The Real Estate (Regulation & Development) Act

  • Registration
  • Audits
  • Quarterly Returns
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The Real Estate (Regulation and Development) Act , 2016 (popularly known as RERA) is an Act of the Parliament of India came into force from 1 May 2016 which applies to whole of India except the State of Jammu and Kashmir.

This Act has been established to:
  • Regulate and promote the Real Estate sector
  • To ensure the 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 and the adjudicating officer and for matters connected therewith or incidental thereto.

The RERA has prescribed various compliances to be followed by the Real Estate industry to adhere to the Rules and Regulations made there under.

Following are the compliance which needs to be followed by the Real Estate Sector:
Compliance Description
Registration Under RERA, registration of Real Estate Project and Real easte agents which has been specifically defined under the Act is mandatory. The registration of Real Estate Project and Real easte agents have been explained in detail under the heading "RERA Registration" under the Tab "License and IPR".
Web page maintainence The promoter is mandatorily required to maintain a web page on the website of the authority to display the details of the projects therein
Agreement of Sale A Real Estate promoter has to mandatorily enter into an Agreement of Sale with the buyer before accepting more than 10% of the sale consideration.
Separate Bank Account 70%. 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. Such amount can be withdrawn from the Bank Account by the promoter only if the said approval is certified by the certified Engineer, an approved Architect or a Chartered Accountant in practice that the withdrawal is in proportion to the percentage of completion of the project
Audit of accounts The promoter is required to get the accounts audited within a period of 6 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. The chartered accountant is required to verify during the audit that whether 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 or not.
Querterly Filling The promoter is required to file quarterly the following details with the authority:
  1. Quarterly up-to-date list of number and types of apartments or plots, as the case may be, booked
  2. Quarterly up-to-date list of number of garages booked
  3. Quarterly up-to-date list of approvals taken and the approvals which are pending subsequent to commencment certificate
  4. Quarterly up-to-date status of the project
  5. Such other information and documents as may be specified by the regulations made by the Authority