Transcription
ANDHRA PRADESH REAL ESTATE (REGULATION ANDDEVELOPMENT) RULES, 2017HANDBOOK(Draft Version 1.0)
INDEXChairman’s Message . 11) COMMENCEMENT OF AP RERA RULES: -. 32) OBJECTIVES: - . 33) FUNCTIONS: - . 34) APPLICABILITY OF RERA: - . 35) FEE FOR REGISTRATION OF PROJECT, REAL ESTATE AGENT &COMPLAINT: - . 46) REGISTRATION OF PROJECT: - . 4Process for Registration of Project: - . 4Grant of Registration: - . 4Rejection of Registration: - . 4SEPARATE ACCOUNT: -. 5Withdrawal of Application: - . 5Extension of Registration: - . 5Revocation of Registration: -. 57) FUNCTIONS AND DUTIES OF THE PROMOTER: - . 68) OBLIGATIONS OF THE PROMOTER: - . 79) REGISTRATION OF REAL ESTATE AGENT: - . 9Application for Registration: - . 9Grant of Registration: - . 9Renewal of Registration: - . 9Revocation of Registration: -. 910) FUNCTIONS OF A REAL ESTATE AGENT: - . 1011) RIGHTS AND DUTIES OF ALLOTTEES: -. 1012) DETAILS TO BE PUBLISHED IN AP RERA WEBSITE: - . 1113) COMPLAINTS: - . 12a) Filing a Complaint to Authority: - .12b) Filing a Complaint to Adjudicating Officer: - .13FAQ: General FAQ . 1442
1) COMMENCEMENT OFAP RERARULES: The Real Estate (Regulation & Development) Act-2016 was introduced by the Government ofIndia with effect from 01.05.2017.Andhra Pradesh Real Estate (Regulation and Development) Rules, 2017 was notified videG.O.Ms.No. 115, dated: 27.03.20172) OBJECTIVES: Regulation and Promotion of Real Estate sectorEnsure the sale of any plot, apartment, residential or commercial building or part of RealEstate project in an efficient and transparent mannerProtect the interest of consumers in Real EstatesectorEstablish Adjudicating mechanism for speedy dispute redressal3) FUNCTIONS: To facilitate the growth and promotion of a healthy, transparent, efficient and competitive realEstate sector, the Authority shall register and regulate real estate projects and real estate agents registered under this Act; publish and maintain a website of records, for public viewing, of all real estate projectsfor which registration has been given, with such details as may be prescribed, includinginformationprovided in the application for which registration has been granted; maintain a database, on its website, for public viewing, and enter the names andphotographsof promoters as defaulters including the project details, registration forwhich has been revoked orhave been penalised under this Act, with reasonsthereof, for access to the general public; maintain a database, on its website, for public viewing, and enter the names andphotographsof real estate agents who have applied and registered under this Act,with such details as may beprescribed, including those whose registration has beenrejected or revoked; fix through regulations for each areas under its jurisdiction the standard fees to be leviedon the allottees or the promoter or the real estate agent, as the case may be; ensure compliance of the obligations cast upon the promoters, the allottees and the realestate agents under this Act and the rules and regulations made thereunder; ensure compliance of its regulations or orders or directions made in exercise of itspowers under this Act; perform such other functions as may be entrusted to the Authority by the appropriateGovernment as may be necessary to carry out the provisions of this Act.4) APPLICABILITY OF RERA: Applicable for all new Real Estate projects for the site area more than 500 sq.mts. and fora building having more than 8 units (plots, apartments) including all phasesApplicable for all ongoing projects (except the following) as on the date ofcommencement of AP RERA i.e.01.05.20173
a) Where roads, open spaces, amenities and services have been handed over to theconcern local body in layout projectsb) Where all slabs are laid in housing projectsc) Where all developmental works have been completed and sale / lease deeds of 50% ofthe Apartments / Houses/ Plots have been executed.d) Where development works have been completed and application has been filed to thecompetent authority for issue of Completion or Occupancy Certificate.5) FEE FOR REGISTRATION OF PROJECT, REAL ESTATE AGENT &COMPLAINT: The registration fee for Project, Agent and Complaint shall be as per the Annexure - 6The fee for extension of registration is equivalent to twice the registration fee.6) REGISTRATION OF PROJECT: The application shall be filed in prescribed form.No Promoter shall advertise, market, book, sell or offer for sale, or invite persons topurchase in any manner any plot, apartment or building in any Real Estate project or partof it, without registering the Real Estate project with AP RERA.Process for Registration of Project: The Promoter shall submit applicationalong with all the documents as mentioned inAnnexure – 2.Promoter shall make separate application for registration of every project for theconstruction of each phase or separate building or group of buildings in layouts.Grant of Registration: On receipt of the application, the Authority shall issue orders of registration within 30days subject to the provisions of RERA Act, Rules and Regulations of AP RERAThe Promoter will be provided a Registration number and a webpage will be createdalong with Login Id and password so as to upload the details/progress of the project fromtime to time.If the Registration number is not issued within 30 days, the project shall be deemed to beregistered.Rejection of Registration: Application can be rejected, if it does not confirm to the provisions mentioned in Act andRules.Provided that no application shall be rejected unless the Promoter has been given anopportunity of being heard in the matter.4
SEPARATE ACCOUNT: Promoter shall deposit 70% of the amounts realised from the Allottees, from time to timein a separate account to be maintained to cover the cost of construction and the land cost.Promoter shall withdraw the amount from separate account, in proportion to the % ofcompletion of the project after certified by an Engineer, an Architect and a Charteredaccountant in practice.Promoter shall get his account audited within 6 months after the end of every financialyear by a chartered accountant and shall produce a statement of accounts duly certifiedand signed by such Chartered Accountant and it shall be verified during the audit that theamounts collected for a particular project have been utilised for the project and thewithdrawal has been in compliance with the proportion to the percentage of completion ofthe project.Withdrawal of Application: The Promoter can apply for the withdrawal of application for registration of the project,before 30 days from the date of submission of application.Extension of Registration: The promoter shall apply for extension of registration along with an explanatory note andsupporting documents for the reasons of delay.The promoter has to apply 3 months prior to the expiry of the registration granted.The registration of project may be extendedup to1 year.Extension of registration of the project shall not be beyond the period provided as per locallaws for completion of the project.No application for extension of registration of project shall be rejected unless the applicanthas been given an opportunity of being heard in the matter.Revocation of Registration: The Authority may revoke the registration granted on receipt of a complaint or on‘suomotu’ or on recommendation of Competent authority.The registration granted to the promoter shall be revoked when the Promoter makesdefault in doing or violates or involved in any kind of unfair practice or irregularities.The registration granted to the Promoter shall not be revoked unless the Authority hasgiven notice to the Promoter, not less than 30 days in writing stating the grounds on whichit is proposed to revoke and any cause shown by the Promoter against the proposedrevocation within the period of notice.Upon revocation of the registration, the authority will display the name of the promoter inthe list of defaulters.a) debarPromoter from accessing website in relation to the projectb) specify the name in the list of defaulters and display his photograph on websitec) inform the RERA Authorities in other states and Union territories about suchrevocation5
d) direct the bank holding the project bank account, to freeze the account and de-freezingfor the remaining development works or any other further actionsUpon revocation, the Authority may carry out the remaining development works or by theassociation of Allottees or by the contractor selected by the AllotteesThe association of Allottees shall have the first right of refusal for carrying out theremaining development works.7) FUNCTIONS AND DUTIES OF THE PROMOTER: After receiving the Login Id and password of the webpage, the Promoter shall upload allthe details of proposed project for public viewing.a) Details of registration granted by the Authority;b) Quarterly up-to-date, list of number and types of apartments or plots;c) Quarterly up-to-date, list of number of garages booked;d) ovalswhicharependingsubsequent to commencementcertificate;e) Quarterly up-to-date, status of the project;f) theregulations made bytheAuthority. ctincluding theregistrationnumberobtainedfromtheAuthority The Promoter, at the time of the booking and issue of allotment letter shall beresponsibletomakeavailablethe details of sanctioned plans, layout plans along withspecifications approved by the CompetentAuthority and the stage wise time schedule ructurelikewater,sanitationandelectricity to the Allottee. The Promotershall—a) be responsible for all obligations, responsibilities and functions under theprovisionsofthis Act rtotheassociationofAllottees,asthecasemaybe,till theconveyance of all the apartments, plots or buildings, as the case may be, to otteesortheCompetentAuthority, as the case maybe;b) be responsible for any structural defect or any other defect for such period of 5years from date ofconveyancedeed executed to theAllotteesforalltheapartments,plots or buildings, as the case may be;c) makeitavailabletotheAllotteesindividuallyor to the association of Allottees,as the case maybe;d) eal Estateprojectis developedon a leasehold land, specifying the period of lease, and certifying that paid,andmaketheleasecertificate available to the association ofAllottees;6
e) be responsible for providing and maintaining the essential services, on reasonablecharges, till the taking over of the maintenance of the project by the associationof theAllottees;f) hallbeformedwithinaperiodof3monthsofthemajority of Allottees having bookedtheir plot or apartment or building,g) Execute a registered conveyance deed of the apartment, plot or ofAllotteesorCompetentAuthorityh) Pay all the outgoingswhich he has collected from intenancecharges,including mortgage loan and interest on mortgages or other encumbrances andsuch other liabilities payable to CompetentAuthorities, banks and financialinstitutions, which are related to theproject) beforehetransfersthephysicalpossessionoftheReal teesi) Continuetobeliable,evenafterthetransferof the property, to pay such outgoings andpenal charges, if any, to the authority or person to whom they are payable and beliable for the cost of any legal proceedings which may be taken therefore by suchauthority orperson; cewiththetermsoftheagreement for sale; After executed the Agreement for sale for any apartment, plot or building, as the case maybe, not mortgaged or create a charge on such apartment,plot or building as the case maybe and if any such mortgage or charge is made or created then not withstanding anythingcontained in any other law for time being in force; it shall not affect the right and interestof the allottee who has taken or agreed to take such apartment, plot or apartment, as thecase may smadebytheAuthority. 8) OBLIGATIONS OF THE PROMOTER: Advertisement - No Promoter shall advertise, market, book, sell or offer for sale, orinvite persons to purchase in any manner any plot, apartment or building in any RealEstate project or part of it, without registering the Real Estate project with AP RERA Veracity of Advertisement a. Promoter shall compensate, if any person makes an advance or deposit on the basis rprospectus,oronthebasisofanymodelapartment,plot or building, as the case may be, and sustains any loss or damage by reason of anyincorrect, false statement7
ontainedinthenotice,advertisement or prospectus, or the model apartment, plot or building, as the case maybe, intends to withdraw from the proposed project, he shall be returned his entireinvestmentalongwithinterestatsuchrateinthe manner provided under AP RERA Rulesb. Agreement for Sale and Advance payment-A Promoter shall not accept a sum ntforsale,underanylawforthetimebeinginforce Adherence to the Sanctioned Plans a) The proposed project shall be developed and completed by the Promoter inaccordance with the sanctioned plans, layout plans and specifications as approvedby the CompetentAuthorities.b) If any additions and alterations in the sanctioned plans, layout plans andspecifications and the nature of fixtures, fittings and amenities described therein ybe,whichareagreedtobe taken,shall be communicated to the Allottees and AP RERAc) Promoter may make such minor additions or alterations as may be required by theallottee, or such minor changes or alterations as may be necessary due roperdeclarationandintimationtotheallottee. Transfer of Real Estate Project to third party –i.The Promoter shall not transfer or assign his majority rights and liabilities ftheAuthority.Provided that such transfer or assignment shall not affect the allotment or saleof the apartments, plots or buildings as the case may be.ii.On the transfer or assignment being permitted by the allottees and theAuthority, the intending Promoter shall be required to independently complywith all the pending obligations under the provisions of the Act or the Rulesand Regulations and the pending obligations as per the Agreement for sale.Provided that any transfer or assignment shall not result in extension of time tothe intending Promoter to complete the Real estate project. In case of default,such intending Promoter shall be liable to the consequences of breach or delay.Insurance of Real Estate Project: -The Promoter shall obtain all such insurances asmentioned in AP RERA —(i)title of the land and building as a part of the Real Estate project;and(ii) constructionof the Real Estateprojecta. The Promoter shall be liable to pay the premium and charges in respect of einsurance to the association oftheAllottees.8
b. The insurance shall stand transferred to the benefit of the allottee or the association ofAllottees, at the time of enteringintoanagreementforsale.c. On formation of the association of the Allottees, all documents relating to theinsurance shall be handed over to the association of the Allottees. Transfer of Title: a) The promoter shall execute a registered conveyance deed in favour of inthecommonareastotheassociation of the allottees or the competent authority as the case may be, asprovide under the local laws or within 3 months date of issue of occupancycertificate.b) Promoter shall handoverthephysical possession and necessary documents eassociationoftheallotteesorthecompetentauthority, as thecase may beas per the local laws or within 30 days after obtaining the occupancycertificate.9) REGISTRATION OF REAL ESTATE AGENT: Application for Registration:Every Real Estate Agent shall submit application in the website of the Authority with all thedocuments mentioned in Annexure – 5.Grant of Registration: On receipt of application the Regulatory Authority shall issue a certificate with aRegistration number to the Real Estate Agent.The registration granted shall be valid for a period of five yearsRenewal of Registration: For renewal, Agent shall submit the application along with updated documents as perAnnexure - 5 prior to 3 months of expiry of the registration.The renewal granted under this rule shall be valid for a period of 5 years.Revocation of Registration: Where any real estate agent who has been granted registration under this rovisionsunderthisAct,revoke theregistration or suspend the same for such period as it thinksfit.9
No revocation or suspension shall be made by the Authority unless an opportunity ofbeing heard as been given.10) FUNCTIONS OF A REAL ESTATE AGENT: Every registered Real Estate Agent shall, Not facilitate the sale or purchase of any plot, Apartment or building as the case may be,in the Real Estate Project or partwhich is not registered with the Regulatory Authority;Maintain and preserve books of accounts, records and documents;Not involve himself in (any unfair trade practices) making false statement, orally or inwriting or by visible representation abouta) service or amenities or of a particular standard or grade,b) Promoter or himself has approval or affiliation,c) services which the promoter does not have.d) advertisement whether in any newspaper or other media of services that are notintended to be offered by the Promoter.Facilitate the possession of all the information and documents, as the allottee is entitledto, at the time of booking;Maintain the register of Allottees in Annexure - 10 and the statement indicating personwise receipts and disbursement in respect of sums accepted as advance from theAllottees and the statement indicating purpose wise receipts in respect of sums acceptedas advance or commission and shall be in Annexure - 11 respectively;11) RIGHTS AND DUTIES OF ALLOTTEES: EveryAllottee shall: Entitled to obtain the information relating to sanctioned plans, layout plans along with thespecifications, approved by the Competent Authority. Entitled to knowstage-wisetimescheduleofcompletionofthe project. claimthepossession ofthecommonareas. Entitled to claimtherefundofamountpaidalongwithinterest as per the provisions of the Actand Rules and Regulations. tor building by thePromoter. timeasspecifiedinthesaidagreementforsale.necessary Beliabletopayinterest,forany delay in payment towards any amount or charges to be paidas per the provisions of the Act.10
romoter and suchallottee. ,orfederation of thesame.a ment,plotorbuildingas the case may be,within a period of two months of the occupancy certificate issued for the said apartment,plot or building, as the case maybe. theconveyancedeedofthe apartment, plotor building12) DETAILS TO BE PUBLISHED IN AP RERA WEBSITE: a) Promoters – Details of the Promoter includes the following information, Profile–Developer or Group Profile of his enterprise including name, address, type ofenterprise and the particulars of registration. In case of new incorporated or registeredentity, brief details of the parent entity including its name, registered address and type ofenterprise Background– Educational qualifications and work experience (in case of new entity,work experience of parent entity) Track record – Number of years of experience of Promoter or parent entity, also in otherstates or union territories, number of completed projects and area till date, number ofongoing projects and proposed area to be constructed, details and profile of ongoing andcompleted projects for the past 5 years Litigations – Details of past or ongoing litigations in relation to the Real Estate project Webpage – Web link to the developer’s or group’s website and web link to the project’swebsiteb) Project –Details of the Real Estate Project includes the following information, Compliance and Registration – Authenticated copy of approvals, commencementnotice, sanctioned building/layout plan, specifications of the project and details of theregistration granted by the Regulatory AuthorityApartment and Garage/Parking – Number, type and carpet area of apartments for salein projects, number and areas of garage/parking for sale, number of open parking areas.Registered Agent – Name and addresses of Real Estate agents registered with AP RERAConsultants – Name and addresses of Contractors, Architect, Structural Engineer andChartered Accountant along with the name & address of the firm, name of Promoters,license number and its validity, names and profile of key projects completedLocation – Location details of the project with clear demarcation of land dedicated toproject along with boundaries including latitude and longitude of the end pointsDevelopment works – Plan of development works including firefighting facilities, use ofrenewable energy, amenities, Gantt charts and Project scheduleFinances of Promoter – Details of Pan card, IT Returns of Promoter for three precedingyears11
Details in Promoter’s Webpage – List of number and types of apartments or plots,garages/parking booked, Status of Project (each building, floor, internal infrastructureand common areas with photographs)Approvals – NOC’s, Approved plans, any other licenses if required, Occupancycertificate.Legal Documents – Title deed, Land title search report from an advocate, Encumbrancescertificate, Development agreement and such other documents or information asspecified.Contact details – Contact address, contact numbers and e-mails of the Promoter andother officials handling the projectRevoked projects – Details of projects which are revoked or penalized.c) Agent – Details of Real Estate Agent includes the following information, Registered Agent’s Profile –Name of individual (directors or partners if applicable),photographs, brief details of his enterprise, bye-laws, memorandum of Association andarticles of association in case of company, Registration number and its validity withAuthority, Pan card, IT returns for three financial years, address proof of the place ofbusiness, contact numbers,email-id’s and such other informationRevoked Agent’s details – Registration number, validity of registration, details of hisenterprise along with the photographs13) COMPLAINTS: a) Filing a Complaint to Authority: Any aggrieved person may file a complaint with the regulatory authority for any violationunder the Act or the Rules and regulations which shall be accompanied by a fee asspecified in Annexure - 6The regulatory authority shall for the purposes of deciding any complaint,followsummary procedure for inquiry in the following manner:(a) Upon receipt of the complaint the regulatory authority shall issue a notice along withparticulars of the alleged contravention and the relevant documents to the respondent;(b) The notice shall specify a date and time for further hearing;(c) On the date so fixed, the regulatory authority shall explain to the respondent about thecontravention alleged to have been committed in relation to any of the provisions of theAct or the Rules and regulations made there under and if the respondent:(i) pleads guilty, the regulatory authority shall record the plea, and pass such ordersincluding imposition of penalty as it thinks fit in accordance with the provisions ofthe Act or the Rules and regulations, made thereunder;(ii) does not plead guilty and contests the complaint the regulatory authority shalldemand and explanation from the respondent;(d) In case the regulatory authority is satisfied on the basis of the submissions made that thecomplaint does not require any further inquiry it may dismiss the complaint;(e) In case the regulatory authority is satisfied on the basis of the submissions made that thethere is need for further hearing into the complaint it may order production of documentsor other evidence on a date and time fixed by it;12
(f) The regulatory authority shall have the power to carry out an inquiry into the complainton the basis of documents and submissions;(g
Andhra Pradesh Real Estate (Regulation and Development) Rules, 2017 was notified vide G.O.Ms.No. 115, dated: 27.03.2017 2) OBJECTIVES: - Regulation and Promotion of Real Estate sector Ensure the sale of any plot, apartment, residential or commercial building or part of Real Estat
