ANDHRA PRADESH REAL ESTATE REGULATORY AUTHORITY
All the Real Estate Projects for development of plots, buildings and apartments for the purpose of selling, must be registered with RERA, except the Projects in a site area upto 500sq.m and upto 8 apartments .
Without RERA registration of the Project, the promoter should not advertise or sell any plot, apartment/building .
Projects which received completion certificate from the competent Authorities Prior to commencement of this Act (May 1st, 2016)no registration is required
Registration is not required for the buildings where Renovation or repair or re-development which does not involve marketing, advertising selling or new allotment.
Ongoing projects: as on date of commencement of this Act i.e, May 1st,2016 a) Where roads, open spaces, amenities and services have been handed over to the local authority in layout Projects b) all slabs are laid in housing projects c) All development works and sale deed of 50 % flats have been completed d) Application filed for issue of Occupancy certificate
Documents to be enclosed for the application of Project registration (Enclosure -1)The details of fees to be paid along with applications are available in GO. Rt. No: 642 MA dated 12-09-2017 and GO. Rt. No:648 MA dated 14-09-2017 (Enclosure-2)
Grant/rejection of application by authority: Within a period of 30 days Authority should provide a registration number, including a Login Id and password to the applicant for accessing the website of the Authority and to create his web page and to fill therein the details of the proposed project.
Rejection of application:if the application does not conform to the provisions of this Act or the rules or regulations made thereunder, the Authority can reject the application and the reasons to be recorded in writing
Information to be published by promoter on webpage: Promoter shall enter all the required documents, plans and information of the Project on the Website of the Authority within a period of (15) days from the date of receipt of the Login ID and Password from the Authority
Deemed registration- If Authority fails to grant/reject the application within 30 days it is deemed to be approved.
Withdrawal of application: In case the promoter applies for withdrawal of application for registration within 30 days, 10% of the registration fee or as prescribed which ever is more shall be retained and the remaining amount shall be refunded within 30 days.
Revocation of registration: on receipt of a complaint or suo motu in this behalf or on the recommendation of the competent authority, registration granted can be revoked
Reasons for revocation: (a) The promoter makes default in doing anything required by or under this Act or the rules or the regulations made thereunder; (b) The promoter violates any of the terms or conditions of the approval given by the competent authority; (c) The promoter is involved in any kind of unfair practice or irregularities.
Before revocation, 30 days notice has to be given to the promoter duly specifying the reasons for revocation.
Upon revocation: Authority shall a)debar the promoter from accessing its website in relation to that project and specify his name in the list of defaulters and display his photograph on its website and also inform the other Real Estate Regulatory Authority in other States and Union territories about such revocation or registration b) Facilitate the remaining development works to be carried out in accordance with the provisions of section 8
Upon revocation of Registration ,the Authority is obligated to determine who to carry out remaining development (competent authority or by the association of allottees or in any other manner)
Extension of registration: Registration granted under section 5, may be extended bythe Authority as per section 6 on an application made by the promoter in Form 'E' which shall not be less than three months before its expirty. The Promoter has to pay twice the registaration fee for Extension with an explanatory note setting out the reasons for delay. The Regulatory Authority may at its discration can waive the fee if the extension is due to "force majeure".
Should pay a fee twice the initial registration fee as per Enclosure 2
Extension of registration of the project shall not be beyond the period provided as per local laws for completion of the project or phase Extension period does not exceed a period of one year
Separate Bank account- a)Separate Bank account to be opened for each project and 70% of the amount received from the allottees has to be deposited in this account.
b)Promoter can withdraw the amount from this account in proportion to the percentage of completion of the project after it is certified by Engineer, architect and Auditor.These cerificates shall be uploaded in the webpage before the withdrawal of the amount from the separate account.
Upon revocation of project Registration this account will be freezed
Real estate agents: Must be registered with RERA inorder to facilitate sale/purchase of any plot/appartment/building
Application for Registration by the Real Estate Agent
Documents to be enclosed for the application for registration of Real Estate Agent (Enclosure -1)The details of fees to be paid along with applications are available in GO. RT. No: 642 MA dated 12-09-2017 and 648 MA dated 14-09-2017 (Enclosure-2)
Validity for Agent registration- 5 years
Renewal of Agent registration - Should be applied , three months prior to the expiry of the registration granted
Insurance for title of Land
The Promoter shall upload all the details in the webpage provided to the project
Developer or Group Profile
Track record of the promoter
Litigations: Details of past or ongoing litigations in relation to the real estate project
Webpage link to the developer and project
Authenticated copy of the approvals and commencement certificate,Sanctioned plans and details of the registration granted by the Authority.
Apartment and garage/parking related details
Registered Agents
Details, including name and addresses, of contractors, architect and structural engineers and other persons concerned with the development of the real estate project
location details of the project, with clear demarcation of land dedicated for the project along with its boundaries including the latitude and longitude of the end points of the project
Development Plan
Finances of the promoter
Quaterly Updates: The Promoter shall upload the details of Apartments, Garrages booked, status of the project, status of the approvals e.t.c in the webpage provided to the project within seven days from the expiry of each quarter
Advertisement/prospectus issued by promoter: Should contain website address and Registration Number given by authority.
Pending consideration of the Application for registration of project by the Authority,Promoter shall not make any advertisement for sale of Project or create any third party interest in the project
Obligations of promoter regarding
Agreement for Sale and Advance payment A Promoter shall not accept a sum more than 10% of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale, under any law for the time being in force
Adherence to the Sanctioned Plans
Defect LiabilityFor any structural defect or any other defect in workmanship, quality or provision of services or any other obligations of the promoter as per the agreement, the alottee shall brought to thenotice of the promoter with in a period of five years from the date of handing over possession The promoter has to rectify such defects within thirtydays If the promoter fails to rectify the defects, the allottees are entitled to receive the appropriate compensation as provided in the Act.
Transfer of a real estate project to a third party: The Promoter shall not transfer or assign his majority rights and liabilities to a third party without prior written consent from 2/3 allottees except Promoter and with the prior written approval of the Authority.
On the transfer or assignment beeing permitted by the allottees and the Authority, the intending promoter shall be required to indipendently comply all the pending obligations as per the Act & Rules and as per the agreement of sale entered into by the erstwhile promoter with the allottees.
Third party allotee: Promoter shall not be responsible towards any third party making payment/remittances on behalf of any Allottee and such third party shall not have any right in the application/allotment of the said apartment applied for herein in any way and the Promoter shall be issuing the payment receipts in favour of the Allottee only.
Insurance of Real Estate Project:
Transfer of title- The promoter shall execute a registered conveyance deed in favour of the allottee along with the undivided proportionate title in the common areas to the association of the allottees or the competent authority, as the case may be, and hand over the physical possession of the plot, apartment of building, as the case may be, to the allottees and the common areas to the association of the allottees or the competent authority, as the case may be, in a real estate project, and the other title documents pertaining thereto within specified period as per sanctioned plans as provided under the local laws: Provided that, in the absence of any local law, conveyance deed in favour of the allottee or the association of the allottees or the competent authority, as the case may be, under this section shall be carried out by the promoter within 3 months from date of issue of occupancy certificate.
Promoter shall handover the necessary documents and plans, including common areas,to the association of the allottees or the competent authority, within 30 days after obtaining the occupancy certificate.
Return of amount and compensation: If the promoter fails to complete or is unable to give possession of an apartment, plot or building -
The promoter shall compensate the allottees in case of any loss caused to him due to defective title of the land, on which the project is being developed or has been developed, in the manner as provided under this Act, and the claim for compensation under this subsection shall not be barred by limitation provided under any law for the time being in force.
If the promoter fails to discharge any other obligations imposed on him under this Act or the rules or regulations made thereunder or in accordance with the terms and conditions of the agreement for sale, he shall be liable to pay such compensation to the allottees, in the manner as provided under this Act.
Return of amount and compensation: The rate of interest payable by the promoter to the allottee or by the allottee to the promoter, as the case may be, shall be the State Bank of India Prime Lending Rate plus two percent.
Timelines for refund: Shall be payable by the promoter to the allottee within 45 days from the date on which such refund along with applicable interest and compensation, if any, becomes due.
Rights &Duties of allottees
The allottee shall be entitled to obtain the information relating to sanctioned plans, layout plans , specifications and such other information as provided in this Act or the rules and regulations made thereunder or the agreement for sale signed with the promoter.
The allottee shall be entitled to know stage-wise time schedule of completion of the project, including the provisions for water, sanitation, electricity and other amenities and services as agreed to between the promoter and the allottee in accordance with the terms and conditions of the agreement for sale.
The allottee shall be entitled to claim the possession of apartment, plot or building, as the case may be, and the association of allottees shall be entitled to claim the possession of the common areas, as per the declaration given by the promoter under sub-clause (C) of clause (I) of sub-section (2) of section 4.
The allottee shall be entitled to claim the refund of amount paid along with interest at such rate as may be prescribed and compensation in the manner as provided under this Act, from the promoter, if the promoter fails to comply or is unable\ to give possession of the apartment, plot or building, as the case may be, in accordance with the terms of agreement for sale or due to discontinuance of his business as a developer on account of suspension or revocation of his registration under the provisions of this Act or the rules or regulations made thereunder.
The allottee shall be entitled to have the necessary documents and plans, including that of common areas, after handing over the physical possession of the apartment or plot or building as the case may be, by the promoter.
Every allottee, who has entered into an agreement for sale to take an apartment, plot or building as the case may be, under section 13, shall be responsible to make necessary payments in the manner and within the time as specified in the said agreement for sale and shall pay at the proper time and place, the share of the registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent, and other charges, if any.
The allottee shall be liable to pay interest, at such rate as may be prescribed, for any delay in payment towards any amount or charges to be paid under sub-section (6).
The obligations of the allottee under sub-section (6) and the liability towards interest under sub-section (7) may be reduced when mutually agreed to between the promoter and such allottee.
Every allottee of the apartment, plot or building as the case may be, shall participate towards the formation of an association or society or cooperative society of the allottees, or a federation of the same.
Physical possession of the apartment: within a period of two months of the occupancy certificate issued
Within 3 months from the date of issue of occupancy certificate Promoter shall give possession of the [Apartment/Plot] to the Allottee
Every allottee shall participate towards registration of the conveyance deed of the apartment, plot or building, as the case may be, as provided under sub-section (1) of section 17 of this Act.
Establishment and incorporation of Real Estate Regulatory Authority.
Composition of Authority- Authority shall consist of a Chairperson and not less than 2 whole timeMembers
Administrative Powers of Chairperson: The Chairperson shall have powers of general superintendence and directions in the conduct of the affairs of Authority and he shall, in addition to presiding over the meetings of the Authority, exercise and discharge such administrative powers and functions of the Authority as may be prescribed.
Promotion of Real Estate Sector by the Authority-
Protection of interest of the allottees, promoter and real estate agent
Creation of a single window system for ensuring time bound project approvals and clearances for timely completion of the project
Creation of a transparent and robust grievance redressal mechanism against acts of ommission and commission of competent authorities and their officials
Measures to encourage investment in the real estate sector including measures to increase financial assistance to affordable housing segment
Encourage construction of environmentally sustainable and affordable housing, promoting standardisation and use of appropriate construction materials, fixtures, fittings and construction techniques
Measures to encourage grading of projects on various parameters of development including grading of promoters;
Dispute settlement forums set up by the consumer or promoter associations
Facilitate digitization of land records and system towards conclusive property titles with title guarantee
Advice to the appropriate Government in matters relating to the development of real estate sector.
Any other issue that the Authority may think necessary for the promotion of the real estate sector.
Advocacy and awareness measures: Government may, while formulating a policy on real estate sector make a reference to the Authority for its opinion. Authority shall within a period of 60 days give its opinion to the Government.
Authority shall take suitable measures for the promotion of advocacy, creating awareness and imparting training about laws relating to real estate sector and policies.
Powers of Authority to call for information, conduct investigations.
Power to issue interim orders.
Powers of Authority to issue directions: The Authority may, for the purpose of discharging its functions under the provisions of this Act or rules or regulations made thereunder, issue such directions from time to time, to the promoters or allottees or real estate agents, as the case may be, as it may consider necessary and such directions shall be binding on all concerned.
Powers to impose penalty
Rectification of orders: Authority may, at any time within a period of 2 years from the date of the order made under this Act, with a view to rectifying any mistake apparent from the record, amend any order passed by it. Provided that no such amendment shall be made in respect of any order against which an appeal has been preferred under this Act: Provided further that the Authority shall not, while rectifying any mistake apparent from record, amend substantive part of its order passed under the provisions of this Act.
Filing of complaints with the Authority or the adjudicating officer: 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 thereunder against any promoter allottee or real estate agent, as the case may be.
Manner of filing complaint with the regulatory authority and the manner of holding an inquiry by the regulatory authority- Complaint applicaion shall be accompanied by a fee of Rs1000 in the form of DD
Manner of filing a complaint with the adjudicating officer and the manner of holding an inquiry by the adjudicating officer- Complaint applicaion shall be accompanied by a fee of Rs1000 in the form of DD
Filing appeal before appellate tribunal
Recovery of interest or penalty or compensation and enforcement of order, etc. If a promoter or an allottee or a real estate agent, as the case may be, fails to pay any interest or penalty or compensation imposed on him, by the adjudicating officer or the Regulatory Authority or the Appellate Authority, as the case may be, under this Act or the rules and regualtions made thereunder, it shall be recoverable from such promoter or allottee or real estate agent, in such manner as may be prescribed as an arrears of land revenue.
If any adjudicating officer or the Regulatory Authority or the Appellate Tribunal, as the case may be, issues any order or directs any person to do any act, or refrain from doing any act, which it is empowered to do under this Act or the rules or regulations made thereunder, then in case of failure by any person to comply with such order or direction, the same shall be,enforced, in such manner as may be prescribed.
Applellate Tribunal: Any person aggrieved by any direction or decision or order made by the Authority or by an adjudicating officer under this Act may prefer an appeal before the Appellate Tribunal having jusrisdiction over the matter Provided that where a promoter files an appeal with the Appellate Tribunal, it shall not be entertatined, without the prmoter first having deposited with the Appellate Tribunal atleast 30% of the penalty, or such higher percentage as may be determined by the Appellate Tribunal, or the total amount to be paid to the allottee including interest and compensation imposed on him, if any, or with both, as the case may be, before the said appeal is heard.
Application for settlement of disputes and appeals to Appellate Tribunal. The appropriate Government or the competent authority or any person aggrieved by any direction or order or decision of the Authority or the adjudicating officer may prefer an appeal to the Appellate Tribunal.
Appellate tribunal Complaint redressal time: Every appeal made under sub-section (1) shall be preferred within a period of 60 days from the date on which a copy of the direction or order or decision made by the Authority or the adjudicating officer is received by the appropriate Government or the competent authority or the aggrieved person
Powers of Tribunal
Administrative powers of Chairperson of Appellate Tribunal. The Chairperson shall have powers of general superintendence and direction in the conduct of the affairs of Appellate Tribunal and he shall, in addition to presiding over the meetings of the Appellate Tribunal exercise and discharge such administrative powers and functions of the Appellate Tribunal as may be prescribed.
Right to legal representation: The applicant or appellant may either appear in person or authorise one or more chartered accountants or company secretaries or cost accountants or legal practitioners or any of its officers to present his or its case before the Appellate Tribunal or the Regulatory Authority or the adjudicating officer
Orders passed by Appellate Tribunal to be executable as a decree. Every order made by the Appellate Tribunal under this Act shall be executable by the Appellate Tribunal as a decree of civil court, and for this purpose, the Appellate Tribunal shall have all the powers of a civil court.
Notwithstanding anything contained in sub-section (1), the Appellate Tribunal may transmit any order made by it to a civil court having local jurisdiction and such civil court shall execute the order as if it were a decree made by the court.
Appeal to High Court: Any person aggrieved by any decision or order of the Appellate Tribunal, may, file an appeal to the High Court, within a period of 60 days from the date of communication of the decision or order of the Appellate Tribunal. High court may entertain the appeal after the expiry of 60 daysif it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time.
Punishment for non registration- If any promoter contravenes the provisions of section 3 he shall be liable to a penalty which may extend upto 10 % of estimated cost of the project + 3 years imprisonment
If any promoter does not comply with the orders, decisions or directions issued under sub-section (1) or continues to violate the provisions of section 3, he shall be punishable with imprisonment for a term which may extend up to 3 years or with fine which may extend up to a further 10% of the estimated cost of the real estate project, or with both.
Penalty for contravention of section 4.- If any promoter provides false information or contravenes the provisions of section 4, he shall be liable to a penalty which may extend up to 5% of the estimated cost of the real estate project.
Penalty for contravention of other provisions of this Act.- If any promoter contravenes any other provisions of this Act, other than that provided under section 3 or section 4, or the rules or regulations made thereunder, he shall be liable to a penalty which may extend up to 5% of the estimated cost of the real estate project
Penalty for nonregistration and contravention under sections 9 and 10 - If any real estate agent fails to comply with or contravenes the provisions of section 9 or section 10, he shall be liable to a penalty of ten thousand rupees for every day during which such default continues, which may cumulatively extend up to 5%. of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated.
Penalty for failure to comply with orders of Authority by promoter- If any promoter, who fails to comply with, or contravenes any of the orders or directions of the Authority, he shall be liable to a penalty for every day during which such default continues, which may cumulatively extend up to 5% of the estimated cost of the real estate project
Penalty for failure to comply with orders of Appellate Tribunal by promoter- If any promoter, who fails to comply with, or contravenes any of the orders, decisions or directions of the Applellate Trinbunal, he shall be punishable with imprisonment for a term which may extend up to 3years or with fine for every day during which such default continues, which may cumulatively extend up to 10% of the estimated cost of the real estate project, or with both.
Penalty for failure to comply with orders of Authority by real estate agent- If any real estate agent, who fails to comply with, or contravenes any of the orders or directions of the Authority, he shall be liable to a penalty for every day during which such default continues, which may cumulatively extend up to 5% of the estimated cost of plot, apartment or building, as the case may be, of the real estate project, for which the sale or purchase has been facilitated
Penalty for failure to comply with orders of Appellate Tribunal by agent- If any real estate agent, who fails to comply with, or contravenes any of the orders, decisions or directions of the Appellate Tribunal, he shall be punishable with imprisonment for a term which may extend up to 1 year or with fine for every day during which such default continues, which may cumulatively extend up to 10% of the estimated cost of plot, apartment or building, as the case may be, of the real estate project, for which the sale or purchase has been facilitated, or with both.
Penalty for failure to comply with orders of Authority by allottee- If any allottee, who fails to comply with, or contravenes any of the orders, decisions or directions of the Authority he shall be liable to a penalty for the period during which such default continues, which may cumulatively extend up to 5% of the plot, apartment or building cost, as the case may be,
Penalty for failure to comply with orders of Appellate Tribunal by allottee- If any allottee, who fails to comply with, or contravenes any of the orders or directions of the Applellate Tribunal, as the case may be, he shall be punishable with imprisonment for a term which may extend up to one year or with fine for every day during which such default continues, which may cumulatively extend up to ten per cent. of the plot, apartment or building cost, as the case may be, or with both.
Compounding of offences: Notwithstanding anything contained in the Code of Crimnal Procedure, 1973, if any person is punished with imprisonment under this Act, the punishment may, either before or after the institution of the prosecution, be compounded by the court Provided that the sum prescribed shall not, in any case, exceed the maximum amount of the fine which may be imposed for the offence so compounded.
Powers to Adjudicate: For the purpose of adjudging compensation under sections 12, 14, 18 and section 19, the Authority shall appoint in consultation with the appropriate Government one or more judicial officer as deemed necessary, who is or has been a District Judge to be an adjudicating officer for holding an inquiry in the prescribed manner, after giving any person concerned a reasonable opportunity of being heard.
Provided that any person whose complaint in respect of matters covered under sections 12, 14, 18 and section 19 is pending before the Consumer Disputes Redressal Forum or the Consumer Disputes Redressal Commission or the National Consumer Redressal Commission, established under section 9 of the Consumer Protection Act, 1986, on or before the commencement of this Act, he may, with the permission of such Forum or Commission, as the case may be, withdraw the complaint pending before it and file an application before the adjudicating officer under this Act.
The application for adjudging compensation under sub-section (1), shall be dealt with by the adjudicating officer as expeditiously as possible and dispose of the same within a period of 60 days from the date of receipt of the application: Provided that where any such application could not be disposed of within the said period of 60 days, the adjudicating officer shall record his reasons in writing for not disposing of the application within that period.
Factors to be taken into account by the adjudicating officer While adjudging the quantum of compensation or interest, the adjudicating officer shall have due regard to the following factors :-
Cognizance of offences: No court shall take cognizance of any offence punishable under this Act or the rules or regulations made thereunder save on a complaint in writing made by the Authority or by any officer of the Authority duly authorised by it for this purpose.
Application of other laws not barred. The provisions of this Act shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force.
Act to have overriding effect. The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force.