AMITY UNIVERSITY

AMITY LAW SHOOL

REAL ESTATE LAW (LAW474)

REGISTRATION OF REAL STATE PROJECT & AGENT

Submitted to: Mr. Kaushlesh Pandey

Submitted by: Yash Vardhan Nagesh1

Arushi Priya
B.A., LL.B (HONS.)
Semester- VII
Section- B

1
e-mail: yashvardhan.nagesh@student.amity.edu

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 -ACKNOWLEDGEMENT-

We take this opportunity to express our profound gratitude and deep regards to our respected
teacher and guide Mr. Kaushlesh Pandey for his valuable guidance, scholarly inspiration,
which he have extended to us for the successful completion of this endeavour. His efforts can
be only better expressed by coming up to his expectations.

We sincerely acknowledge the help rendered by the libraian of the Amity University, Whose
cordial relations helped us for successful completion of assignment.

Yash Vardhan Nagesh

Arushi Priya
B.A.,LL.B(HONS.) SEMESTER 7th

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 -TABLE OF CONTENTS-

-REAL ESTATE PROJECT- ________________________________________________ 3

REGISTRATION REQUIREMENT ________________________________________ 3

NON-APPLICABILITY___________________________________________________ 3

PROCEDURE FOR REGISTRATION ______________________________________ 4

DEEMED REGISTRATION _______________________________________________ 6

VALIDITY OF REGISTRATION __________________________________________ 6

EXTENSION OF REGISTRATION ________________________________________ 6

REVOCATION OF REGISTRATION ______________________________________ 6

UNFAIR PRACTICE _____________________________________________________ 7

EFFECT OF REVOCATION ______________________________________________ 7

OBLIGATION OF AUTHORITY __________________________________________ 8

-REAL ESTATE AGENT- ___________________________________________________ 8

REQUIREMENT OF REGISTRATION: ____________________________________ 8

PROCEDURE FOR REGISTRATION: _____________________________________ 9

DOCUMENTS FOR REGISTRATION: _____________________________________ 9

VALIDITY: _____________________________________________________________ 9

DEEMED REGISTRATION: ______________________________________________ 9

CONDITIONS FOR REGISTRATION CERTIFICATE: _______________________ 9

PENALTY FOR NON-REGISTRATION AND CONTRAVENTION UNDER

SECTIONS 9 AND 10____________________________________________________ 10

-CONCLUSION- __________________________________________________________ 11

-BIBLIOGRAPHY- _______________________________________________________ 12

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 -REAL ESTATE PROJECT-

Section 2(zn) defines the phrase ‘real estate project’ as the development of a building or a
building consisting of apartments, or converting an existing building or a part thereof into
apartments, or the development of land into plots or apartment, as the case may be, for the
purpose of selling all or some of the said apartments or plots or building, as the case may be,
and includes the common areas, the development works, all improvements and structures
thereon, and all easement, rights and appurtenances belonging thereto.

Where the real estate project is to be developed in phases, every such phase shall be considered
a standalone real estate project and the promoter shall obtain registration for each phase
separately.

REGISTRATION REQUIREMENT

Section 3(1) provides that any promoter cannot sell or offer for sale or invite person to purchase
any plot, apartment etc., without registering the real estate project with the Real Estate
Regulatory Authority established under this Act. Ongoing projects as on 01.05.2016 and for
which the completion certificate has not been issued, the promoter shall require registering
within a period of three months from 01.05.2016.

NON-APPLICABILITY

Section 3(2) provides registration of the real estate project shall not be required in the following
cases-

 Where the area of land to be developed does not exceed 500 sq. meters or the number
of apartments to be developed does not exceed 8 inclusive of all phases; if the
appropriate Government considers it necessary, it may reduce the threshold limit of the
same;

 Where the promoter has received the completion certificate prior to the commencement
of this Act;

 For the purpose of renovation or repair or re-development which does not involve
marketing, advertising selling or new allotment of any apartment, plot or building as
the case may be, under the real estate project.

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PROCEDURE FOR REGISTRATION

Section 4 and 5 of the Act provides the procedure of registration. The procedure is as detailed
below:

 Every promoter shall make an application to the Real Estate Regulatory Authority for
registration in such form, manner, within such time and accompanied by such fee as
may be specified by the regulations made by the Authority;

 The promoter shall enclose the following documents along with the application-

 a brief details of his enterprise, type of enterprise and the particulars of registration and
the names and photographs of the promoter;

 a brief detail of the projects launched by him for the past five years, whether completed
or being developed including the current status of the said projects, any delay in
completion, details of cases pending, details of types of land and payments pending;

 an authenticated copy of the approvals and commencement certificate from the

competent authority; if the project is to be developed in phases, an authenticated copy of
the approvals and commencement certificate from the authority for each such phase;

 the sanctioned plan, layout plan and specifications of the proposed project or the phase
thereof, and the whole project as sanctioned by the competent authority;

 the plan of development works to be executed in the proposed project and the proposed
facilities to be provided thereof including fire fighting facilities, drinking water facilities,
emergency evacuation services, use of renewable energy;

 the location details with clear demarcation of land dedicated for the project along with
its boundaries including the latitude and longitude of the end points of the project;

 proforma of the allotment letter, agreement for sale and the conveyance deed proposed
to be signed with the allottees;

 the number, type and the carpet area of apartments for sale along with the area of the
exclusive balcony or verandah area and the exclusive open terrace areas apartment with
the apartment, if any;

 the number of areas of garage for sale in the project;

 the names and address of his real estate agents, if any, for the proposed project;

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 the names and addresses of the contractors, architects, structural engineer, if any and
other persons concerned with the development of the proposed project;

 a declaration, supported by an affidavit, which shall be signed by the promoter or any

person authorized by the promoter, stating-

o that he has a legal title to the land with legally valid documents with authentication
of such title, if such land is owned by another person;

o that the land is free from all encumbrances, or as the case may be details of the
encumbrances on such land including any rights, title, interest or name of any party
in or over such land along with details;

o the time period within which he undertakes to complete the project or phase
thereof, as the case may be;

o that 70% of the amounts realized for the real estate project from the allottees, from
time to time, shall be deposited in a separate account to be maintained in a schedule
bank to cover the cost of construction and the land cost and shall be used only for
that purpose;

o the promoter shall withdraw the amounts from the separate account to cover the
cost of the project, in proportion to the percentage of the completion of the project;

o the amounts from the separate account shall be withdrawn by the promoter after it
is certified by an engineer, an architect and a chartered accountant in practice that
the withdrawal is in proportion to the percentage of the completion of the project;

o the promoter shall get his 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 and it shall be
verified during the audit that the amounts collected for a particular project have
been utilized for the project and the withdrawal has been in compliance with the
proportion to the percentage of completion of the project;

o he shall take all pending approvals on timefrom the competent authorities;

o that he has furnished such other documents as may be prescribed by the rules or
regulations made under this Act; and

 such other information and documents as may be prescribed;

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  The Authority shall operationalize a web based online system for submitting application
for registration of projects within a period of one year from the date of its establishment;

 On receipt of the application the Authority shall within a period 30 days grant
registration and provide a registration number, including a Login Id and password to
the applicant for accessing the website of the Authority and to create his web page and
to fill therein the details of the proposed project or reject the application for reasons to
be recorded in writing, if such application does not conform to the provisions of the Act
or the rules or regulations under there under after giving him a reasonable opportunity.

DEEMED REGISTRATION

Section 5(2) provides that if the Authority fails to grant the registration or reject the application,
the project shall be deemed to have been registered and the Authority shall within a period of
7 days of the expiry of the said period of 30 days, provide a register number and a long id and
password to the promoter for acceding the website of the Authority and to create his web page
and to fill therein the details of the proposed project.

VALIDITY OF REGISTRATION

Section 5(3) provides that the registration granted shall be valid for a period declared by the
promoter for completion of the project or phase thereof.

EXTENSION OF REGISTRATION

Section 6 provides that the registration granted may be extended by the Authority on an
application made by the promoter due to force majeure, in such form and on payment of such
fee as may be specified by regulations made by the Authority. The Authority may in reasonable
circumstances without default on the part of the promoter, based on the facts of each case, and
for the reasons to be recorded in writing, extend the registration granted to a project for such
time as it considers necessary, which shall, in aggregate, not exceed a period of one year. No
application for extension of registration shall be rejected unless the applicant has been given
an opportunity of being heard in the matter.

REVOCATION OF REGISTRATION

Section 7 provides that the Authority, on receipt of a complaint or suo motu or on the
recommendations of the competent authority, revoke the registration granted after being
satisfied that-

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  the promoter makes default in doing anything required by or under this Act or the rules,
or the regulations made there under;

 the promoter violates any of the terms or conditions of the approval given by the
competent authority;

 the promoter is involved in any kind of unfair practice or irregularities;

 the promoter indulges in any of fraudulent practices.

The registration shall not be revoked unless the Authority has to given the promoter not less
than 30 days notice, in writing, stating the grounds on which it is proposed to revoke the
registration and has considered any cause shown by the promoter within the period of that
notice against the proposed revocation. The Authority may, instead of revoking the
registration, permit it to remain in force subject to such further terms and conditions so imposed
shall be binding upon the promoter.

UNFAIR PRACTICE

The explanation to Section 7(1) defines the term ‘unfair practice’ as a practice, which for the
purpose of promoting the sale or development of any real estate project adopts any unfair
method or unfair or deceptive practice including any of the following practices-

 the practice of making any statement, whether in writing or by visible representation,

which-

 falsely represents that the services are of a particular standard or grade;

 represents that the promoter has approval or affiliation which such promoter does not
have;

 makes a false or misleading representation concerning the services;

 the promoter permits the publication of any advertisement or prospectus whether in any
newspaper or otherwise of services that are not intended to be offered;

EFFECT OF REVOCATION

Section 7(4) provides that the Authority, upon revocation of the registration-

 shall debar the promoter from accessing its website in relation to that project and
specify his name in the list of defaulters and display his photographs on its website and

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 also inform the other Real Estate Regulatory Authority in other States and Union
Territories about such revocation or registration;

 shall facilitate the remaining development works to be carried out in accordance with
the provisions of Section 8;

 shall direct the banking to freeze the account and thereafter take such necessary actions,
including consequent de-freezing of the said account, towards facilitating the remaining
development works in accordance with Section 8;

 may, to protect the interests of allottees or in the public interest, issue such directions
as it may deem necessary.

OBLIGATION OF AUTHORITY

Section 8 provides that upon lapse of registration or on revocation of the registration the
Authority may consult the appropriate Government to take such action as it may deem fit
including the carrying out of the remaining development works by competent authority or by
the association of allottees or in any other manner as may be determined by the Authority. The
decision or order of the Authority shall take effect until the expiry of the period of appeal. In
case of revocation of registration the association of allottees shall have the first right of refusal
for carrying out of the remaining development works.

-REAL ESTATE AGENT-

Section 2 (zm) of RERA defines real estate agents. According to the definition, a "real estate
agent" means any person, who negotiates or represents other persons for transfer of a real estate
property by way of sale to another person and receives remuneration or fees or any other
charges for his services whether as commission. A real estate agent is also a person who
introduces, through any medium, prospective buyers and sellers to each other for negotiation
for sale or purchase of real estate property, as the case may be, and includes property dealers,
brokers, middlemen etc.

REQUIREMENT OF REGISTRATION:

To achieve the objective of regulating the real estate sector and to standardize this sector
making it more transparent, the Act and the Rules made thereunder require for the real estate
agents to obtain a registration certificate from the Real Estate Regulating Authority. RERA

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also says that the real estate agents will also be liable for any flaws in the project and can be
prosecuted for any misconduct in the business. It is Section 9 (1) of RERA that mandates the
registration. Section 9 prohibits an agent to operate his business without such registration.

PROCEDURE FOR REGISTRATION:

Rule 8 of the National Capital Territory of Delhi Real Estate (Regulation and Development)
(General) Rules, 2016 ("Rules") read with Section 9 (2) of RERA state that every real estate
agent, required to register, shall make an application in writing to the Authority established
under RERA Form 'G', in triplicate, until the application procedure is made web based.

DOCUMENTS FOR REGISTRATION:

 Name, registered address, type of enterprise (proprietorship, societies, partnership,

company etc.);

 In case of a Real Estate Agency the particulars of incorporation including the bye-laws,
MoA , AoA,

 Name, Address, contact details and photograph of the real estate agent or director or
Partners

 the authenticated copy of the PAN card of the real estate agent;

 the authenticated copy of the address proof of the place of business.

VALIDITY:

The registration certificate is valid for 5 years from the date of receipt. It can be revoked before
the expiry of this period in case the agent breaches the RER Act or Rules.

DEEMED REGISTRATION:

According to Section 9 (4) of the Act read with Rule 9 of the Rules, if the Authority does not
grant or reject the registration certificate within 30 days, hereon the completion of the period
specified under sub-section (3), if the applicant does not receive any communication about the
deficiencies in his application or the rejection of his application, he shall be deemed to have
been registered.

CONDITIONS FOR REGISTRATION CERTIFICATE:

The following conditions/ compliances are to be adhered to by the real estate agents after
attaining the registration certificate:

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 Not to facilitate sale of unregistered property;
 Due maintenance of books of accounts records and documents as provided under rule 14;
 Avoid use of any unfair trade practices as enumerated under the rules assistance to enable
the allottee and promoter to exercise their respective rights and fulfil their
respective obligations at the time of booking and sale of any plot, apartment or building,
as the case may be; and
 Generally adhere by the provisions of the Act and the Rules.

These conditions are also mentioned as conditions in the registration certificate as well as
Section 10 of RERA.

PENALTY FOR NON-REGISTRATION AND CONTRAVENTION UNDER

SECTIONS 9 AND 10

If any real estate agent fails to comply with or contravenes the provisions of section 9 or section
10, he shall be liable to a penalty of ten thousand rupees (10,000) for every day during which
such default continues, which may cumulatively extend up to five percent (5%) of the cost of
plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or
purchase has been facilitated as determined by the Authority.

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 -CONCLUSION-

RERA Act made the registration of a real estate project and a real estate agent
mandatory under Section 3(1) and Section 9(1) respectively. Non-registration of
a real state project and a real estate agent attracts penalty under section 59 and 62
respectively. The main objective behind the registration is to bring every real
estate project and real estate agent in the radar of Real Estate Regulatory
Authority. By having records, Authority can easily monitor the projects and can
keep an eye on the activities of real estate agents. This will curb illegal practices
in the realm of real estate sector to a great extent.

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 -BIBLIOGRAPHY-

S.No. -WEB SOURCES-

1. https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=6908&k
w=registration-real-estate-projects-regulation-development-act-2016
2. http://www.mondaq.com/india/x/624914/real+estate/Registration+of+Real+Estate+
Agents+Under+RERA

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