Real Estate (Regulation and Development) Act, 2016

(92 Sections and 10 Chapters)

Section 2 (e): An "apartment" refers to a separate, self-contained part of any immovable

property, including rooms or spaces on one or more floors, used for residential, commercial, or
ancillary purposes such as residence, office, shop, showroom, business, or trade.

Section 2 (n): Common areas include:

(i) Entire land of the real estate project or specific phase.

(ii) Shared building spaces: staircases, lifts, lobbies, fire escapes, entrances, and exits.
(iii) Common facilities: basements, terraces, parks, play areas, open parking, and storage
spaces.
(iv) Lodging for property management and community service personnel.
(v) Central services: electricity, gas, water, sanitation, air-conditioning, renewable energy
systems, etc.
(vi) Equipment for common use: water tanks, motors, ducts, and related apparatus.
(vii) Community and commercial facilities within the project.
(viii) Other necessary areas for maintenance, safety, and common use.

Section 2 (o): "Company" refers to an entity incorporated under the Companies Act, 2013, and
includes:

(i) corporations established under any Central or State Act;

(ii) development or public authorities established by the Government under applicable
laws.

Section 8: Obligation of Authority on Lapse or Revocation of Registration

 If a project's registration lapses or is revoked under this Act, the Authority, in consultation
with the appropriate Government, may decide on measures to complete the remaining
development.
 These may include involving a competent authority, the association of allottees, or other
means as determined by the Authority.
 No such decision will take effect until the appeal period under the Act expires.
  Additionally, in case of revocation, the association of allottees will have the first right to
undertake the remaining development work.

Section 9: Registration of Real Estate Agents

 Prohibition Without Registration: Real estate agents cannot facilitate transactions in

registered real estate projects without obtaining registration from the Authority.
 Application for Registration: Agents must apply to the Authority in the prescribed
format, with required fees and documents.
 Approval or Rejection: Registration is granted if conditions are met, valid for the entire
State/Union Territory. Applications can be rejected with written reasons, but only after
the applicant is heard.
 Deemed Registration: If no communication about deficiencies or rejection is received
within the specified period, the agent is deemed registered.
 Registration Number: Registered agents receive a number to be quoted in all
transactions.
 Validity and Renewal: Registrations are valid for a prescribed period and can be
renewed with payment of the requisite fee.
 Revocation or Suspension: Registration may be revoked or suspended for violations or
if obtained through fraud, after giving the agent a chance to be heard.

Section 13: No deposit or advance to be taken by promoter without first entering into
agreement for sale

 A promoter cannot accept more than 10% of the cost of an apartment, plot, or building as
advance or application fee without first entering into a registered written agreement for
sale with the buyer.
 The agreement must specify project details, construction specifications, internal and
external development works, payment schedules, possession date, applicable interest
rates for defaults, and other prescribed particulars.

Section 14: Adherence to sanctioned plans and project specifications by the promoter

 Compliance with Approved Plans: The promoter must develop the project as per the
sanctioned plans, layout, and specifications approved by competent authorities.
  Restrictions on Alterations: No additions or alterations to the sanctioned plans, layouts,
or specifications, including fixtures, fittings, and amenities, can be made without the prior
consent of the allottee. Minor changes for architectural or structural reasons are allowed
if verified by an authorized architect or engineer and duly intimated to the allottee.
Changes to buildings or common areas require written consent from at least two-thirds of
the allottees (excluding the promoter).
 Rectification of Defects: The promoter must fix any structural or workmanship defects
reported within five years of possession, free of charge, within 30 days. Failure to do so
entitles the allottee to compensation as per the Act.

Section 17: Transfer of Title

 Conveyance Deed Execution: The promoter must execute a registered conveyance deed
for the allottee, including the undivided share in common areas, and transfer physical
possession of the property as per sanctioned plans and local laws. If no local laws apply,
this must be done within three months of receiving the occupancy certificate.
 Handover of Documents: After obtaining the occupancy certificate and handing over
possession, the promoter must provide necessary documents, plans, and common areas to
the association of allottees or the competent authority within the timeline specified by
local laws or, if absent, within 30 days of receiving the completion certificate.

Section 19: Rights and duties of allottees

 Access to Information: Right to obtain sanctioned plans, layout specifications, and

project details as per the Act or agreement with the promoter.
 Project Timeline: Right to know the stage-wise completion schedule, including water,
electricity, and amenities provisions.
 Possession: Right to claim possession of the apartment, plot, or building and common
areas as per the promoter’s declaration.
 Refund and Compensation: Right to a refund with interest and compensation if the
promoter fails to deliver possession as per the agreement or due to business
discontinuance.
 Documents and Plans: Right to receive necessary documents and plans, including for
common areas, after possession is handed over.
  Payment Obligations: Responsibility to make payments, including registration charges,
municipal taxes, utility charges, maintenance fees, and other dues, as per the agreement.
 Interest on Delayed Payments: Liable to pay interest for delays in payment unless
mutually agreed otherwise.
 Formation of Associations: Obligation to participate in forming an association, society,
or federation of allottees.
 Possession: Must take possession within two months of receiving the occupancy
certificate.
 Registration of Conveyance Deed: Participate in registering the conveyance deed as per
the Act.

Section 20: Establishment and incorporation of Real Estate Regulatory Authority

The Real Estate Regulatory Authority (RERA) must be established by the appropriate
government within one year of the Act's enforcement. This Authority will have the powers and
functions outlined in the Act. Multiple States or Union Territories may choose to have a single
Authority, or more than one Authority within a State or Territory if necessary. Until the Authority
is established, the government will designate an existing regulatory body or officer to perform its
functions. Once the Authority is set up, all pending cases and complaints will be transferred to it
and continued from the point of transfer. The Authority will be a corporate body with legal
powers to own property, contract, and take legal action.

Section 21: Composition of Authority

The Authority shall consist of a Chairperson and not less than two whole time Members to be
appointed by the appropriate Government.

Section 43: Establishment of Real Estate Appellate Tribunal

The appropriate Government must establish a Real Estate Appellate Tribunal within one year of
the Act's enactment, which may have multiple benches for different jurisdictions. Each bench
must include at least one Judicial Member and one Administrative or Technical Member. The
Government can create a single Appellate Tribunal for multiple States or Union Territories if
needed. Until the new Tribunal is set up, existing Appellate Tribunals may be designated to
handle appeals under the Act. Once the new Tribunal is established, all pending matters will be
transferred to it. Aggrieved individuals may appeal decisions by the Authority or adjudicating
officers, but promoters must deposit at least 30% of the penalty or other amounts before their
appeal is heard.

Section 45: Composition of Appellate Tribunal

The Appellate Tribunal shall consist of a Chairperson and not less than two whole time Members
of which one shall be a Judicial member and other shall be a Technical or Administrative
Member, to be appointed by the appropriate Government.

Section 53: Powers of Tribunal

The Appellate Tribunal is not bound by the procedures of the Code of Civil Procedure, 1908, or
the Indian Evidence Act, 1872, but is guided by natural justice principles. It can regulate its own
procedures and has powers similar to those of a civil court, such as summoning witnesses,
requiring document production, and issuing commissions for evidence. It can also review
decisions, dismiss applications for default, or proceed ex parte. All proceedings are considered
judicial, and the Tribunal is treated as a civil court under specific sections of the Indian Penal
Code and the Code of Criminal Procedure.

Section 66: Penalty for failure to comply with orders of Appellate Tribunal by real estate
agent

A real estate agent who fails to comply with the orders of the Appellate Tribunal may face
imprisonment for up to one year, a fine for each day of non-compliance (which can accumulate
up to 10% of the estimated cost of the real estate project involved), or both.