What a builder must register, disclose and deliver, and what a homebuyer can claim when a project is delayed or defective. A curated selection; not the complete text.
Provided for study purposes. Cross-check against the official source (India Code / the relevant government gazette) before citing or relying on this text — amendments and corrections may not be reflected here.
No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase, any plot, apartment or building in any real estate project or part of it in any planning area without registering the project with the Real Estate Regulatory Authority. Registration is not required where the area of land proposed to be developed does not exceed five hundred square metres, where the number of apartments proposed to be developed does not exceed eight inclusive of all phases, where the promoter has received a completion certificate prior to the commencement of this Act, or for the purpose of renovation, repair or re-development which does not involve marketing, advertising, selling or new allotment.
Every promoter shall make an application to the Authority for registration in the prescribed form, enclosing the authenticated copy of the approvals, the sanctioned plan and layout plan, the proforma of the allotment letter and agreement for sale, and the details of the persons to whom apartments have already been allotted. The promoter shall also declare that seventy per cent of the amounts realised for the real estate project from the allottees shall be deposited in a separate account in a scheduled bank to cover the cost of construction and the land cost, to be used only for that purpose and withdrawn in proportion to the percentage of completion certified by an engineer, an architect and a chartered accountant in practice.
The promoter shall make available on the Authority's website all details of the proposed project, including the sanctioned plans and layout plans, the stage-wise time schedule of completion, and quarterly updates on the status of the project. The promoter shall be responsible for all obligations and functions towards the allottees till the conveyance of all the apartments or plots, and shall obtain the completion or occupancy certificate and make it available to the allottees.
Where any person makes an advance or a deposit on the basis of the information contained in the notice, advertisement or prospectus, or on the basis of any model apartment, plot or building, and sustains any loss or damage by reason of any incorrect, false statement included therein, they shall be compensated by the promoter. If the person intends to withdraw from the proposed project, they shall be returned their entire investment along with interest and compensation as prescribed.
A promoter shall not accept a sum of more than ten per cent of the cost of the apartment, plot or building as an advance payment or an application fee from a person without first entering into a written agreement for sale with that person and registering the agreement for sale.
The proposed project shall be developed and completed in accordance with the sanctioned plans, layout plans and specifications as approved by the competent authorities. The promoter shall not make any additions or alterations in the sanctioned plans or the common areas without the previous written consent of at least two-thirds of the allottees. Where any structural defect or any other defect in workmanship, quality or provision of services is brought to the notice of the promoter within a period of five years from the date of handing over possession, it shall be the duty of the promoter to rectify it without further charge within thirty days, and failing that the aggrieved allottee is entitled to receive appropriate compensation.
Where the promoter fails to complete or is unable to give possession of an apartment, plot or building in accordance with the terms of the agreement for sale, or is unable to do so by reason of discontinuance of business or suspension or revocation of registration, they shall be liable, on demand from the allottee who wishes to withdraw from the project, to return the amount received with interest and compensation. Where the allottee does not intend to withdraw from the project, the promoter shall pay interest for every month of delay till the handing over of the possession.
The allottee is entitled to obtain information relating to the sanctioned plans and layout plans and the stage-wise time schedule of completion, to know the stage-wise time schedule of completion of the project and of the services, to claim possession of the apartment and of the common areas, to claim the refund with interest where the promoter fails to comply with the agreement for sale, and to have the necessary documents and plans after the physical possession is handed over. The allottee is in turn required to make the necessary payments in the manner and within the time specified, and to pay the share of the registration charges, municipal taxes, water and electricity charges and maintenance charges.
Any aggrieved person may file a complaint with the Authority or the adjudicating officer, as the case may be, for any violation or contravention of the provisions of this Act or the rules and regulations made under it, against any promoter, allottee or real estate agent.
The appropriate Government shall establish an Appellate Tribunal to hear appeals from the directions, decisions or orders of the Authority and the adjudicating officer. Every appeal shall be preferred within a period of sixty days from the date on which a copy of the direction, decision or order is received, and the Appellate Tribunal shall endeavour to dispose of the appeal within sixty days.
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