1. REAL ESTATE(REGULATION AND
DEVELOPMENT)ACT,2016
PAWAN PATHAK
Law associate

2. PREAMBLE
• An Act to establish the Real Estate
Regulatory Authority for regulation and
promotion of the real estate sector and to
ensure sale of plot, apartment or building, as
the case may be, or sale of real estate
project, in an efficient and transparent
manner and to protect the interest of
consumers in the real estate sector and to
establish an adjudicating mechanism for
speedy dispute redressal and also 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

3. GOOD TO KNOW DEFINATIONS
 Sec 2(e) "apartment" whether called block, chamber, dwelling
unit, flat, office, showroom, shop, godown, premises, suit,
tenement, unit or by any other name, means a separate and
self-contained part of any immovable property.
 Sec 2(f) "Appellate Tribunal " means the Real Estate
Appellate Tribunal established under section 43.
 "carpet area" means the net usable floor area of an
apartment.
 "building" includes any structure or erection or part of a
structure or erection which is intended to be used for
residential, commercial.
 "common areas" mean the entire land for the real estate
project the stair cases, lifts, staircase and lift lobbies, fir
escapes, and common entrances and exits of buildings; the
common basements, terraces, parks, play areas, open
parking areas and common storage spaces; all community
and commercial facilities.

4. MANDATE REGISTRATION
• 3. (1) No promoter and agent/broker 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, without registering the
real estate project with the Real Estate
Regulatory Authority established under this
Act:
• EXEMPTION – in case where construction is
below 500 sq.meter or number of apartment
is below 8.

5. Function and duties of promoter
• Compulsory web site mentioning every
minute details about his projects for public
viewing. Section 11(1)
• Advertisement shall mention all details of
project.
• At time of booking ,promoter shall isssue
allotment letter along with every relevant
details of project. Sec 11(3)

6. Rights and duties of promoter mentioned in sec 11-18 of this Act
• Promoter shall be responsible for all
obligations, responsibilities, and function
under the provisions of the Act till the
conveyance of flat
• For structural defect or any other defect
he shall be responsible till 5 years after
conveyance. sec 14(3)
• Responsible for obtaining lease certificate
if any, providing and maintaining essential
services on reasonable charges.

7. Duties of allotte
Entitled to obtain all information relating to
sanction plan, layout plan section 19.
Entitled to claim the possession of flat and
common areas.
Allotte shall be responsible to pay interest
in case of delay of payment as per entered
agreement between promoter and allotte.

8. Real estate regulatory authority
• Within one year from passage of this Act by
every state, section 20.
• Function is to facilitate the growth and
promotion of healthy, transparent, efficient
and competitive real estate sector. Section 32
• (a) protection of interest of the allottees,
promoter and real estate agent;
• (e) encourage sustainable developments of
project.
• Grading of project along with promoters
grading.

9. Real estate appellate tribunal
• Section 43 - appropriate govt. within 1 year
establish this tribunal.
• (5) 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 jurisdiction over the matter.
• It will not be bound by civil procedure code
and will be regulated by principal of natural
justice.

10. Offences and penalties
• For non registration – 10% of project
• If promoter does not comply with orders,
directions and decisions will be liable to
be imprisoned for max 3 years or with fine
10% or both.
• If he gives false information then 5% fine.
• For any other contravention under Act, 5%
of project cost.
• In case of offence by companies then
person in charge will be responsible(

11. Miscellaneous provision
• Section 86(2) every rule or notification
issued by state must be laid before state
legislature.
• Section 88 – application of other laws not
barred it’s in addition to and not derogation
of any other law for time being in force.
• section 89- provisions of this act not
inconsistent with any law will have over-
riding effect .
• Section 92- repeal the Maharashtra

12. What for TruLex
• Section 84 makes a reference to legal
practitioners in case dispute arises.
• We can extend our area of service to provide
for registration services as well for promoters
and connect with broker firms as 2.
• Wait. Let me think of some more…by then
enjoy your coffee .