Responsibility of promoter till handing of possession

Responsibility of promoter till handing of possession
  • General
  • Wednesday 11th September 2019
  • Author: Shreya Uppal

Highlights

  • After the introduction of the RERA Act, 2016, the promoter has been burdened with many obligations that are needed to be fulfilled to complete a project on a proper and timely basis.

  • The promoter needs to ensure the timely compliance of Section 4(2)(l)(D) of the RERA Act, 2016, thereby setting aside 70% of the amounts realized from the allottees in a separate account of a scheduled bank and using that amount only to cover the cost of construction and the land cost.

After the introduction of the RERA Act, 2016, the promoter has been burdened with many obligations that are needed to be fulfilled to complete a project on a proper and timely basis.
The act has mentioned many clauses regarding the functions or duties of the promoter.


Some notable points:
1. The promoter has to understand that right from selling the flat till handing over the possession, after the RERA Act, 2016, it will not be a cakewalk. As per Section 3 of the RERA Act, 2016, the promoter cannot advertise, market, book, sell or offer for sale any flat without obtaining the RERA Registration no. for his concerned project.
2. He has to ensure that the limit of 500 square meters or 8 units has been kept in mind while registering for a project.
3. As per Section 4, the promoter needs to file an application for the registration of real estate project with the concerned RERA Authority according to his jurisdiction.
4. While filing an application some important documents must be enclosed:
(a) An authenticated copy of the approvals and commencement certificate from the competent authority is required to complete the registration.
(b) The sanctioned plan, layout plan and specifications of the proposed project or the phase thereof.
(c) Proforma of the allotment letter, agreement for sale, and the conveyance deed proposed to be signed with the allottees.
5. The promoter needs to ensure the
timely compliance of Section 4(2)(l)(D) of the RERA Act, 2016, thereby setting aside 70% of the amounts realized from the allottees in a separate account of a scheduled bank and using that amount only to cover the cost of construction and the land cost.
6. He must obtain the relevant
certified certificates from an engineer, architect, and a chartered accountant in order to withdraw the needed amount to complete the project.
7. He shall also get his project accounts audited by a Chartered Accountant within 6 months from the end of the financial year to verify the books of accounts.
8. He should also keep in mind to not to indulge in any unfair trade practices so that he can be saved from the Revocation of his registration which may happen under Section 7 of the RERA Act, 2016.
9. In order to comply with the provisions of Section 11 of the RERA Act, 2016, he must create a webpage on the website of the concerned RERA Authority after receiving the login Id and password so that he can update the needed information on that website.
10. He shall also be responsible to obtain the lease certificate certifying that all dues in regard to the leasehold land have been paid so that the same can be made available to the association of allottees.
11. The promoter will also need to execute a registered conveyance deed of the apartment in favor of the allottee along with the undivided proportionate title in the common areas to the association of allottees.
12. He shall also be liable to pay all outgoings like rent, municipal taxes,
maintenance charges, etc. until he transfers the physical possession of the project to the allottees.
13. He should keep in mind that as per Section 14 (1) of the RERA Act, 2016, the proposed project shall be developed and completed by the promoter in accordance with the
sanctioned plans, layout plans, and specifications approved by the competent authorities.
14. The previous
written consent of atleast 2/3rds of the allottees who have agreed to take apartments in that project shall also be required to make any other alterations in the sanctioned plans.
15. To comply with the Section 16 of the RERA Act, 2016, he must not forget to
obtain all the required insurances like insurance in respect of title of the land and building as part of the real estate project and in respect of the construction of the real estate project.
16. On the failure to provide timely possession of flats to homebuyers, he must keep in mind his liability to return the amount received by him in respect of the apartment
with the interest rate prescribed by the law including compensation due to the buyers.

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Tags:
sanctioned plansmaintenance chargesseparate Registration 

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