After the enactment of RERA in 2016, the real estate sector has been bestowed with one of the most crystal clear norms that once seemed quite ambiguous.
As per RERA, a promoter is 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.
The definition of a promoter is very intricate and complex which not only involves the new constructions but also conversions of existing buildings, plotting of land, commercial construction, contractor and estate development by any person acting as the holder of attorney from the owner of the land.
Under RERA, All builders and promoters who undertake a real estate project with over 8 units or 500 square meters of development are required to obtain RERA registration and fall under the ambit of RERA regulations.
A promoter in the real estate sector has the following functions and duties-
• The promoter has to get their proposed project registered with the RERA.
• After getting done with the registration, the promoter is required to create a web page and display the project on the website of RERA so as to make the details available for the public.
• The promoter can’t initiate to advertise or make offer for sale of the proposed project without registering the project.
• The Promoter is required to provide certain documents at the time of booking and issue of allotment letter such as- Sanctioned plans, layout plans, along with specifications, approved by the competent authority.
• The promoter is also required to clearly mention the stage-wise time schedule for completion of the project, including the provisions for civic infrastructure like water, sanitation, and electricity.
• The promoter is also required to obtain the completion certificate and the occupancy certificate from the relevant competent authority as per local laws or other laws for the time being in force and to make it available to the allottees individually or to the association of allottees, as the case may be.
• He is also required to obtain the lease certificate, where the real estate project is developed on a leasehold land, specifying the period of lease, and certifying that all dues and charges in regard to the leasehold land have been paid, and to provide the lease certificate to the association of allottees.
• He is also required to refund the amount received in case of failure to give possession on time.
The lucidness of the RERA norms has been proven beneficial to accelerate an unprecedented atmosphere of transparency and accountability in the indian real estate sector.