RERA was introduced to curb malpractices in the real estate sector, ensure timely project completion, and enhance accountability among developers.

All residential and commercial real estate projects exceeding 500 sq. meters or having more than eight apartments must be registered with RERA.

o Ensures project transparency and accountability
o Prevents project delays through strict compliance
o Protects homebuyers' rights with a dispute resolution mechanism
o Mandates full disclosure of project details

Yes, RERA applies to ongoing projects that have not received a completion certificate before the Act came into effect.

No, RERA mainly regulates new real estate development and sales, not rental agreements.

Yes, RERA applies to plotted developments where land is sold for construction, provided the total area exceeds 500 sq. meters or has more than 8 plots.

Yes, developers selling plots must register the project and provide necessary approvals before selling.

No, RERA prohibits developers from collecting more than 10% of the total cost without a registered Agreement for Sale.

It legally binds the developer and buyer, specifying payment schedules, possession date, and penalties for delays.

No, once handed over, the AOA takes charge of maintenance and decision-making regarding common facilities.

Developers must deposit 70% of the project funds into an escrow account to ensure that funds are used only for that specific project.

o Developers: Up to 10% of the project cost or imprisonment
o Agents: Fines or blacklisting
o Buyers: Fines for non-compliance with agreements

Buyers can visit the respective state’s RERA website and search using the project name or registration number.

A complaint can be filed with the state RERA authority or the RERA Appellate Tribunal for resolution.

Yes, all real estate agents facilitating sales of RERA-registered projects must obtain a RERA registration number.

Unregistered agents face penalties, including fines and potential legal action.

While RERA is a central law, each state has its own regulatory authority and may have specific rules and processes.

Developers must apply online on their respective state’s RERA website, providing project details, approvals, financial disclosures, and an affidavit confirming compliance.

The RERA authority must grant or reject the registration within 30 days of application submission.

No, developers cannot advertise, market, sell, or offer any property for sale without obtaining RERA registration.

The developer must rectify deficiencies and reapply. If denied again, they cannot proceed with the project’s sale until compliance is met.

No, RERA applies primarily to new projects and first-time sales. However, agents involved in resale transactions must be RERA-registered.

Yes, complaints can be filed with the respective state RERA authority or tribunal for resolution.

Providing incorrect project details can lead to fines up to 5% of the project cost.

A penalty of up to 10% of the estimated project cost can be imposed, along with potential imprisonment.

No major changes can be made without the consent of at least two-thirds of the buyers.

No, once a sale agreement is signed, the developer cannot increase the price.

It varies by state, but typically, registration is valid for 1 to 5 years and must be renewed.

The tribunal handles appeals against RERA authority decisions and ensures compliance.

Yes, a developer can apply for an extension if the project cannot be completed within the registered timeline.

It depends on the nature of arrangement. If the arrangement is such that:
1. The Landowner does not receive any share in the constructed property: Such agreement would fall under the meaning of transfer and the landowner shall be liable for income tax under the head Capital Gains in the year such transfer takes place.
2. The Landowner receives share in the constructed property: This type of transfer would fall under the definition of "Specified agreement" as per Section 45(5A) of Income Tax Act. The income tax liability will arise in the year when the full or part Completion Certificate is issued by the Competent Authority for the project.

The treatment of units allotted to them shall depend on the nature of business the landowner is in. If the landowner is not in the business of sale/purchase of units then the same shall be recognized in the books of accounts as Fixed Assets/ PPE else the same can be treated as stock in trade.
The same shall be valued in the books of accounts as at Fair Value as on the date of transfer.

From the perspective of RERA (Real Estate (Regulation and Development) Act, 2016, a project is considered complete when:

Physical Construction is Finished: The construction of the project must be completed as per the approved building plans.

Completion Certificate (CC): The developer must obtain the Completion Certificate (CC) from the local municipal authorities, which signifies that the construction is complete and conforms to the approved plans and building laws.

Occupancy Certificate (OC): The developer must obtain the Occupancy Certificate (OC) from the local authorities, signifying that the property is suitable for occupancy and meets safety and health standards.

Handover to Buyers: The project is considered complete when the developer hands over possession of the flats or units to the buyers in accordance with the terms of the sale agreement. Possession can only occur after the OC is granted.

Once the above formalities are fulfilled and possession is handed over, RERA considers the project complete.

Compliance with the provisions of RERA is required until:

Completion of the Project: As mentioned earlier, compliance continues until the project is completed (with all required certificates like CC, OC, etc.), and possession is given to the homebuyers.

Defects Liability Period: Even after possession is handed over, RERA mandates that the developer is liable for any structural defects or poor workmanship for up to 5 years from the date of possession. This means the developer must address any complaints regarding these issues during this period.

Final Closure: After the completion of the project, issuance of the Occupancy Certificate, and handover of possession, developers are still bound to adhere to RERA provisions, but the major compliance responsibilities related to construction, registration, and project updates diminish. However, the developer will still need to comply with certain provisions in the post-occupancy phase, like ensuring timely rectification of defects.

Once the developer has fully complied with RERA provisions, including ensuring the resolution of any defects within the defined period (5 years post-possession), and there are no unresolved complaints or claims, the compliance burden effectively ends.

Under RERA (Section 13(4)), the developer is responsible for fixing structural defects or poor workmanship in a property for 5 years from the date of possession. This includes issues like cracks, water seepage, faulty plumbing, and structural failures.

Key Points:

Duration: The liability lasts for 5 years from possession.

Coverage: Covers structural defects and issues related to construction. Normal wear and tear is excluded.

Reporting Defects: The buyer must notify the developer, who must resolve the issue within 30 days.

If Unresolved: Buyers can seek compensation, file a complaint with RERA, or request a refund.

Exclusions: Does not cover damage from external factors or negligence by the buyer.

No, GST is not applicable on the sale of completed or ready-to-move-in properties that are already registered.