The Real Estate (Regulation And Development) Act, 2016 – Download the full Act here.

The Real Estate (Regulation and Development) Act, 2016 (the Act, from hereon) is a Government of India initiative to bring about the much needed transparency and order to the real estate related transactions by creating a systematic and a uniform regulatory environment, thereby protecting consumer interest and making real estate developers accountable for timely completion of projects.

The Act paves the way for setting up of Real Estate Regulatory Authority (RERA, henceforth) for regulation and promotion of real estate sector while promoting transparency and equity in real estate transactions.

The Act paves the way for setting up of Real Estate Regulatory Authority (RERA, henceforth) for regulation and promotion of real estate sector while promoting transparency and equity in real estate transactions.

RERA act was notified on 26 March 2016 by Government of India . It is applicable to whole of India except the state of Jammu and Kashmir.

Read the notification of Karnataka Real Estate Rules 2016.

The Karnataka Real Estate (Regulation and Development) Rules, 2017 were published in the Official Gazette dated 24th October 2016 in part I of the Karnataka Gazette (Extra Ordinary Number 1193). Subsequently, Karnataka Real Estate (Regulation and Development) Rules, 2017 were approved by the State Government and notified on 10th July 2017 effective when it came into force.

The real estate agent shall pay a registration fee at the time of application for registration by way of a demand draft or a bankers cheque drawn on any Scheduled Bank or a Co-operative Bank or through online payment, as the case may be, for a sum of Twenty-five thousand rupees in case of the applicant being an individual or Two Lakhs rupees in case of the applicant other than an individual.

Govt. Fees for RERA – Project Registration

The project registration fees depend on the type of development project, and the sum can be calculated at the rate of:

1. In case of group housing project,- five rupees per square meter for projects where the area of land proposed to be developed does not exceed one thousand square meters; or rupees ten per square meter for projects where the area of land proposed to be developed exceeds one thousand square meters, but shall not be more than five lakhs rupees;
2. In case of mixed development (residential and commercial) project,- ten rupees per square meter for projects where the area of land proposed to be developed does not exceed one thousand square meters; or fifteen rupees per square meter for projects where the area of land proposed to be developed exceeds one thousand square meters, but shall not be more than seven lakhs rupees;
3. In case of commercial projects,- twenty rupees per square meter for projects where the area of land proposed to be developed does not exceed one thousand square meters; or twenty five rupees per square meter for projects where the area of land proposed to be developed exceeds one thousand square meters, but shall not be more than ten lakhs rupees; and
4. d. In the case of plotted development projects,- five rupees per square meter, but shall not be more than two lakhs rupees.

The registration will be valid for a period specified by the real estate developer in the application form. Hence the real estate developer is accountable to adhere to timelines otherwise he risks suffering losses/ penalties.

• The promoter has received completion certificate of the project prior to commencement of Act
• The area of land proposed to be developed does not exceed 500 sq. mt
• The number of apartments is not more than 8
• Any repair or renovation of an existing building or structure that does not require marketing, advertising and selling of any apartment or plot

Yes. When the Bill was initially introduced it was supposed to cover only residential projects. Later, it was amended to include commercial projects as well including shops, offices and buildings.

• Details of the project such as name, address, type, names and photographs of the Promoters etc
• Details of project already launched by the real estate developer and their status (in the preceding 5 years)
• Approval and commencement certificates obtained from the competent authority for each phase of the project. To simply put in a multi phased development say a township the real estate developer will have to obtain registration for every phase of the entire project separately. This is to the benefit of both a consumer (will firmly know that no changes in the particular phase will be allowed now) and real estate developer (enjoys the flexibility of changing plans for future phases of the entire project)
• Sanctioned plan and layout plan, development plan for the project and details of facilities being made available like drinking water, electricity etc
• Proforma of allotment letter, agreement for sale and conveyance deed to be signed with the consumers
• Number of garages and their respective areas which are for sale in project;
• Location of the project with clear demarcation of the land dedicated to the project.
• Number, type and carpet areas of units to be sold along with details of open areas if any like terraces, balconies etc
• Details of associated engineers, contractors and architects and intermediaries in the project
• A declaration stating that the land of the project is verified authenticated and the developer has a legal title to it, that the project will be completed within specified timeline and that 70% of money received from the consumers shall be deposited in a dedicated escrow account and this amount will be used solely for that particular project.

Carpet area means 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 and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.

The Act has defined clearly about Carpet Area.

The authority shall within 30 days grant the registration of the project to the applicant.

• Promoter makes default in doing anything under Act/Rules/Regulations.
• Promoter violates any terms or conditions of approval given by competent authority.
• Promoter is involved in any kind of unfair practice or irregularities
• Promoter indulges in any fraudulent practices

The promoter shall upload the following updates on the web page for the project, within Fifteen days from the expiry of each quarter:

1. List of number and types of apartments or plots booked;
2. List of number of garages booked;
3. Status of the project:
   1. Status of construction of each building with photographs;
   2. Status of construction of each floor with photographs; and
   3. Status of construction of internal infrastructure and common areas with photographs.
4. Status of approvals:
   1. Approval received;
   2. Approvals applied and expected date of receipt;
   3. Approvals to be applied and date planned for application; and
   4. Modifications, amendment or revisions, if any, issued by the competent authority with regard to any license, permit or approval for the project.

Section 31 of the Act provides for filing of complaint by an aggrieved with the Regulatory Authority.

The form and manner and the fees payable for filing the complaint are specified in section 29 of the Karnataka state Rules. As per the rules, any aggrieved person may file a complaint with the Regulatory Authority for any violation under the Act or the rules and regulations made there under, save as those provided to be adjudicated by the adjudicating officer, as per Form ‘N’ which shall be accompanied by a fee of rupees one thousand in the form of a demand draft drawn on a nationalized bank or a co-operative Bank in favor of regulatory authority and payable at the main branch of that bank at the station where the seat of the said Regulatory Authority is situated.