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RealtyRegulation

The Real Estate (Regulation & Development) Act

Documents Required

Registration

Audits

Quarterly Returns

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The Real Estate (Regulation and Development) Act , 2016 (popularly known as RERA) is an Act of the Parliament of India came into force from 1 May 2016 which applies to whole of India except the State of Jammu and Kashmir.

This Act has been established to:

Regulate and promote the Real Estate sector

To ensure the sale of plot, apartment or building, as the case may be, or sale of real estate project, in an efficient and transparent manner

To protect the interest of consumers in the real estate sector

To establish an adjudicating mechanism for speedy dispute redressal

To establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto.

The RERA has prescribed various compliances to be followed by the Real Estate industry to adhere to the Rules and Regulations made there under.

RERA – Real Estate Sector

Compliances to be Followed by the Real Estate Sector

The RERA has prescribed various compliances to be followed by the Real Estate industry to adhere to the Rules and Regulations made thereunder. Following are the compliances which need to be followed by the Real Estate Sector:

Mandatory 01
Registration
Under RERA, registration of Real Estate Projects and Real Estate Agents — which have been specifically defined under the Act — is mandatory. The registration of Real Estate Projects and Real Estate Agents has been explained in detail under the heading "RERA Registration" under the Tab "License and IPR".
RERA Registration License & IPR
Mandatory 02
Web Page Maintenance
The promoter is mandatorily required to maintain a web page on the website of the authority to display the details of the projects therein. This ensures full transparency and accessibility of project information to all stakeholders and potential buyers.
Transparency Digital Compliance
Mandatory 03
Agreement of Sale
A Real Estate promoter must mandatorily enter into an Agreement of Sale with the buyer before accepting more than 10% of the sale consideration. This protects buyers by ensuring formal documentation precedes any significant financial commitment.
Buyer Protection Sale Compliance
Mandatory 04
Separate Bank Account
70% of the amounts realised for a real estate project from allottees, from time to time, shall be deposited in a separate scheduled bank account to cover the cost of construction and the land cost, and shall be used only for that purpose.
  • Withdrawal permitted only upon certification by a certified Engineer, approved Architect, or a Chartered Accountant in practice.
  • Withdrawal must be in proportion to the percentage of completion of the project.
70% Escrow Rule Fund Safety
Annual 05
Audit of Accounts
The promoter is required to get accounts audited within 6 months after the end of every financial year by a Chartered Accountant in practice, and shall produce a statement of accounts duly certified and signed by such Chartered Accountant.
  • The Chartered Accountant must verify that amounts collected for a project have been utilised for that project.
  • Withdrawals must be in compliance with the proportion to the percentage of completion of the project.
CA Certification Annual Audit
Quarterly 06
Quarterly Filing
The promoter is required to file the following details quarterly with the authority:
  • Quarterly up-to-date list of number and types of apartments or plots booked.
  • Quarterly up-to-date list of number of garages booked.
  • Quarterly up-to-date list of approvals taken and those pending subsequent to commencement certificate.
  • Quarterly up-to-date status of the project.
  • Such other information and documents as may be specified by the regulations made by the Authority.
Q1–Q4 Filing Project Updates