Duties of Promoter under RERA

Duties of Promoter under RERA
  • General
  • Saturday 11th January 2020
  • Author: Riya Kapoor

Highlights

  • Deposit 70% of advances received from allottees in a separate bank account opened for each project.

  • Update quarterly, the stage-wise progress of the project and the number of bookings, in the web portal of RERA.

  • Get all the sale agreements executed in the prescribed format and registered as per the prevailing laws.

  • Obtain Occupancy Certificate and make it available to allottees/association.

RERA or Real Estate (Regulation and Development) Act, 2016 aims at protecting the home purchasers and also boosts the real estate investments. The bill of this Parliament of India Act was passed on 10 March 2016 by the Upper House (Rajya Sabha). The RERA Act was effective on and from 1 May 2016. During this time, Out of 92 sections, 52 were notified. All the other provisions were effective on and from 1 May 2017.

Builders and promoters are tasked with various responsibilities under the RERA Act. All builders and promoters who undertake a real estate project with over 8 units or 500 square meters of development are required to get RERA registration done and fall under the ambit of RERA regulations. Under RERA, a promoter is defined as a person who is entrusted with the task of promoting the project, which was developed or constructed by the developer. The following are the duties of the promoter under the RERA act.

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The promoter shall abide by the following points in order to be RERA Complaint.

  1. Register all the real estate projects with RERA.
  2. Get all the sale agreements executed in the prescribed format and registered as per the prevailing laws.
  3. Deposit 70% of advances received from allottees in a separate bank account opened for each project.
  4. Update quarterly, the stage-wise progress of the project and the number of bookings, in the web portal of RERA.
  5. Adhere to the sanctioned plans and project specifications.
  6. Be responsible for any structural defect or any other defect in workmanship, quality or provision of services for a period of five years from the date of handing over.
  7. Facilitate the formation of an association of allottees within a period of three months of the majority of allottees having booked the apartment/plot.
  8. Provide and maintain essential services on reasonable charges till taking overcharge by the association of allottees. -
  9. Pay all outgoing charges until the transfer of physical possession of projects.
  10. Obtain all insurances on the title of the land, building, and construction of the project and pay premium and charges and also hand over all related documents, to allottees/association.
  11. Obtain Occupancy Certificate and make it available to allottees/association.
  12. Execute conveyance deed in favor of allottee within three months from the date of receipt of the Occupancy Certificate.
  13. Obtain Lease Certificate, if the project is developed on leasehold land and make it available to allottee/association.
  14. Furnish a copy of all the documents/approvals/sanctions/drawings and plans to the allottee and original to the association at the time of exit of the project.
  15. Handover copy/original of the above documents to the association before exiting the project.
  16. Compensate the allottees for any delay of the project or defective title of the land or any other such loss that is caused to the allottee.

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