UP RERA Glimpse

Registration

? Mandatory registration of the project and real estate agent with the Appellate Authority.

? No sale and advertising before the registration.

Minimum Project Size

? Compulsory registration but no specifications on the minimum project size.

? {Compulsory registration for projects admeasuring plot area more than 500 sq. meters or 8 number of apartments (As per Central RERA Rules 2016)}.

Title

• ? Promoter is liable to provide a copy of the legal title report and details of encumbrances, in case there are any.
• ? However, no clause has been included, mentioning the compensation to be provided to allottees, in case of any loss caused due to defective title of the land.
• ? Promoter liable to provide a copy of the legal title report and history.
• ? Land should be free from any encumbrances and details to be provided, if it is not so.
• ? Promoter liable to compensate the allottees, in case of any loss caused due to defective title of the land.
• (As per Central RERA Rules 2016)

Escrow Account

? 70% of the amounts realized for the project to be deposited in a separate account in a scheduled bank to meet the cost of the real estate project and to be withdrawn in proportion to the percentage of completion.

Online Project Details

? All project details such as sanctioned plan, layout plan, floor space index, specifications of the project, authenticated copy of approvals and commencement certificate, should be available online.

Lapse/Cancellation Of Registration

Ambiguity on the process to be adopted for remaining development work, in the event of lapse or cancellation of the project.

Remaining development work to be done by a competent authority or the association of allottees and the appropriate government may be consulted.

(As per Central RERA Rules 2016)

Definition Of Ongoing Projects

Ongoing project, means a project where the completion certificate has not been issued but excludes projects where:

• ? The services have been handed over to the local authority for maintenance.
• ? Where common areas and facilities have been handed over to the residents’
• welfare association for maintenance.
• ? Where all development work is complete and sale/lease deeds of 60% of the apartments/plots have been executed.
• ? Development work is complete and application for completion certificate has been submitted.
• ? For ongoing projects for which the completion certificate has not been issued, the promoter shall make an application to the Authority for registration of the said project, within a period of three months from the date of commencement of this Act.

Sale Of The Apartment

? For existing projects, the promoter should disclose the size of the apartment based on carpet area, even if earlier sold on super built-up area or built-up area.

? On the basis of carpet area only. (As per Central RERA Rules 2016)

Parking

? Parking spaces defined but no specifications regarding parking costs.

Structural Fault

? No clause regarding structural faults.

? Developer to rectify any structural faults free of cost, in case it is reported within five years of the date of possession. (As per Central RERA Rules 2016)

Penalty For Non- Compliance

? Several imprisonment clauses have been made into compounding clauses (where monetary compensation is paid, in lieu of actual punishment).

• ? Promoter: Up to three years of imprisonment or fine up to 10% of the total project cost.
• ? Real estate agent: Up to one year of imprisonment or fine up to 10% of the total project cost. (As per Central RERA Rules 2016) ?
• (https://housing.com/news/ups-draft-rera-rules-protect-buyers- interests/)