Module 2

MAHARERA
Unit - 2
Introduction to Real Estate
(Regulation and Development)
Act 2016 (RERA)
Topics Covered
Introduction to real estate (regulation and
01 development) act 2016 (RERA)
02 Preamble, purpose, and objectives
03 Sections of act
04 Key components of act

Introduction to Real Estate (Regulation and
Development) Act 2016 (RERA)
Why was RERA introduced?

In order to overcome these challenges,
Information asymmetry to citizens the central government brought in the
real estate (regulation and development)
No proper forum if grievances
act, 2016, (RERA) to be made fully
redressed for consumers operational with effect from may 1,
2017. Some sections of the act were
Real estate transactions were
notified from 1st may 2016 and all the
heavily favored by developers state governments were given one year
to formulate their own rules and
regulations and set up the authority, to
Sundry abuses and malpractice. implement the act from 1st may 2017.
Huge delays in real estate project

completion
Important Points
 The central government brought
(RERA) to be made fully
operational with effect from may
1, 2017.
 State governments were given

one year to formulate their own
rules and regulations and set up
the authority, as each state has
comparative different local rules
and regulations.
 RERA was introduced to counter

all the previous mentioned
challenges
Preamble, Purpose, and Objectives
 For any sector to work efficiently, it is necessary to have regulatory authority and a set of rules
for all the stakeholders. This act provides the same for real estate sector.
 The purpose of the authority will be to ensure the sale of plots, apartments, buildings, or sale of
real estate projects in an efficient and transparent manner.
 The act aims at protecting the interests of consumers in the sector, which is done by providing a
mechanism to redress disputes. It also provides for an appellate tribunal over the decisions of
the authority or its officers.
 Therefore, the act aims at protecting the rights and interests of consumers and promotion of
uniformity and standardization of business practices and transactions in the real estate sector. It
attempts to balance the interests of allottees, real estate agents, and promoters by imposing
certain responsibilities on all. It seeks to establish symmetry of information between the
promoter and allottee, transparency of contractual conditions, set minimum standards of
accountability, and a fast-track dispute resolution mechanism.
 The act is applicable across India and its provisions are common to all the states. However, as
the subject of regulation over the real estate sector falls under the state list, the scheme of the
act is that every state has its own real estate regulatory authority. This authority in every state
along with the state government makes its own rules and regulations for the working of the
authority and implementation of the provisions of the act.
Sections of Act
Below is the outline of the act 2016 in tabular form -
Key Components of Act
1. Real Estate Regulatory Authority And Appellate Tribunal
The authority shall also establish an adjudicating mechanism for speedy dispute
redressal regarding registered real estate projects. The key responsibilities of the
authority shall be as follows:
• Ensuring Disclosures of Real Estate Projects By Promoters
• Real Estate Projects Registration
• Real Estate Agents Registration
• Complaints Redressal
• Provide Recommendations To The Appropriate Government On Matters Relating To
The Development & Promotion Of The Real Estate Sector
Any person aggrieved by any direction or decision or order made by the Authority or
by an adjudicating officer may file an appeal before the Appellate Tribunal and the
appeal shall be dealt with by it as expeditiously as possible and endeavor shall be
made by it to dispose of the appeal within a period of sixty days.
Key Components of Act (Contd…)
2. Real Estate Projects Registration
All commercial and residential real estate projects will have to register except in projects where
• The area of land proposed to be developed does not exceed five hundred square meters.
• The number of apartments proposed to be developed does not exceed eight inclusive of all
phases.
• Promoter has received a completion certificate for a real estate project prior to commencement of
this Act.
• For the purpose of renovation or repair or re-development which does not involve marketing,
advertising selling, or new allotment of any apartment, plot, or building, as the case may be, under
the real estate project
No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any
manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in
any planning area within Maharashtra, without registering the real estate project with the Real Estate
Regulatory Authority.
If any promoter fails to register as per the act, he shall be liable to a penalty which may extend up to
ten percent of the estimated cost of the real estate project. On continued violation, he shall be
punishable with imprisonment for a term which may extend up to three years or with fine which may
extend up to a further ten per cent of the estimated cost of the real estate project, or with both.
Apart from registration, the promoters shall be required to provide quarterly updates on the status of
the project to the authority.
3. Real Estate Agents Registration
All Real Estate Agents should register under this Act. No real estate agent shall facilitate the sale or
purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment, or
building, as the case may be, in a real estate project or part of it, without obtaining registration under
this section.
If any real estate agent fails to register, 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 five percent of the cost
of the plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or
purchase has been facilitated.
4. Filing of complaints
Any aggrieved person may file a complaint with the authority or the adjudicating officer, as the case
may be, with respect to any registered real estate project, for any violation or contravention of the
provisions of this act or the rules and regulations made there under. The authority shall establish an
adjudicating mechanism for the speedy redressal of such complaints.
Any person aggrieved by any direction or decision or order made by authority or by an adjudicating
officer may file an appeal before the appellate tribunal.
Any person aggrieved by any decision or order of the appellate tribunal may file an appeal to the High
Court.
Important Points
 For any sector to work efficiently, it is necessary to have
regulatory authority and a set of rules for all the stakeholders.
This act provides the same for real estate sector.
 The act is applicable across India and its provisions are

common to all the states. However, as the subject of regulation
over the real estate sector falls under the state list, the scheme
of the act is that every state has its own real estate regulatory
authority.
Key components of act:
1. Real estate regulatory authority

and appellate tribunal
2. Real estate projects registration
3. Real estate agents registration
4. Filing of complaints
Thank you

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MAHARERA

02 Preamble, purpose, and objectives

04 Key components of act

Why was RERA introduced?

Huge delays in real estate project

 State governments were given

 RERA was introduced to counter

2. Real Estate Projects Registration

3. Real Estate Agents Registration

 The act is applicable across India and its provisions are

Key components of act:

1. Real estate regulatory authority

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