Chapter II REGISTRATION OF REAL ESTATE PROJECT AND REGISTRATION OF REAL ESTATE AGENTS

Registration of Real Estate Project.-(1) No promoter shall book, sell or offer for sale, or invite persons to purchase in any manner any plot or building, as the case may be, in any real estate project, or part of it, Without registering the real estate project with the Real Estate Regulatory Authority established under this Act: Provided that no such registration shall be required,-

1. (a) where the area of land proposed to be developed in a real estate project does not exceed one thousand square metres;
2. (b) where the number of building units proposed to be developed in a real estate project does not exceed twelve: Provided further that where the total carpet area of the building units proposed to be developed exceeds three thousand square metres, registration shall be required.
3. (c) where the promoter has received all requisite approvals/ permits for the development of the real estate project prior to commencement of this Act;
4. (d) for the purpose of renovation or repair or re-development which does not involve re-allotment and marketing of the real estate project: Provided that any promoter may register any Real Estate Project subject to the provisions of this Act before the Real Estate Authority as per this Act. Explanation.-For the purpose of this section, where the real estate project is to be developed in phases, every such phase shall be considered as an independent real estate project, and the promoter shall obtain registration under the Act for each phase separately.

1. (2) Every promoter shall make an application to the Authority for registration of the real estate project in such form, manner, within such time and accompanied by such fee, as may be specified, by the regulations made by the Authority.
2. (3) The promoter shall enclose the following documents along with the application referred to in sub-section (2), namely:-
   • (a) brief details of his enterprise including its name, registered address, type of enterprise (proprietorship, society, partnership, company) and the particulars of registration;
   • (b) an authenticated copy of the building permit from the competent authority obtained in accordance with the laws as may be applicable for the real estate project mentioned in the application, and where the project is proposed to be developed in phases, an authenticated copy of the approval and sanction from the competent authority for each of such phases;
   • (c) the layout plan of the proposed project or the phase thereof, and also the layout plan of the whole project as sanctioned by the competent authority;
   • (d) the plan of development works to be executed in the proposed project and the proposed facilities to be provided thereof;
   • (e) pro forma of the agreements proposed to be signed with the allottees;
   • (f) the number and the carpet area of apartments for sale in the project;
   • (g) the names and addresses of his real estate agents, if any, for the proposed project;
   • (h) the names and addresses of the contractors, architect, structural enginee r, if any, and other persons concerned with the development of the proposed project;
     • (i) a declaration, supported by an affidavit, which shall be signed by the promoter or any person authorised by the promoter,-
     • (i) that he has legal title to the land on which the development is proposed along with a legally valid authentication of such title if such land is owned by another person;
     • (ii) that the land is free from all encumbrances, or as the case may be, of the encumbrances on such land including any rights, title, interest or name of any party in or over such land along with details;
     • (iii) the specific period of time within which he undertakes to complete the project or phase thereof;
     • (iv) that seventy per cent or such lesser per cent as notified by the Government, of the amounts realised for the real estate project from the allottees, from time to time, shall be deposited in a separate account to be maititained in a scheduled bank within a period of ten days of its realisation to cover the cost of construction and shall be used only for that purpose: Provided that in the case of project started before the commencement of this Act the amount to be deposited shall be based on the project cost to be incurred. Explanation.-For the purpose of this clause, the term "scheduled bank" means a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (Central Act 2 of 1934);
     • (v) that he has furnished such other documents as may be prescribed by the rules or regulations made under this Act; and
     • (vi) such other information and documents as may be prescribed.

Grant of registration.-(1) On receipt of the application under sub-section (2) of section 3, the Authority shall within a period of fifteen days,-

1. (a) grant registration subject to the provisions of this Act and the rules and regulations made thereunder and provide a registration number, including a Login 10 and password to the applicant tor accessing the website of the Authority and to create his web page and to fill therein the details of the proposed project; or
2. (b) reject the application for reasons to be recorded in writing, if such application does not conform to the provisions of this Act or the rules or regulations made thereunder: Provided that no application shall be rejected unless the applicant has been given an opportunity of being heard within a specified period in the matter.

1. (2) If the Authority fails to grant the registration or reject the application, as the case may be, as provided under sub-section (1), the project shall be deemed to have been registered, and the Authority shall within five days after the expiry to the said fifteen days, provide a registration number and a Login 10 and password to the promoter for accessing the website of the Authority and to create his web page and to enter therein the details of the proposed project.
2. (3) The registration granted under this section shall be valid for a period declared by the promoter under sub-clause (c) of clause (i) of sub-section (3) of section 3 for completion of the project or phase thereof, as the case may be.
3. (4) The Authority may, from time to time, engage independent observers to assist the Authority for verifying and reporting the factual accuracy of the information furnished by the promoter on such terms and conditions as may be prescribed.

Extension of registration.-The registration to the promoter granted under section 4 may be extended by the Authority on an application made by the promoter under such conditions, as may be prescribed, and in such form and on payment of such fee, as may be specified, by the regulations made by the Authority: Provided that, no such extension of registration shall be granted without the written consent of the majority of the allottees: Provided further that 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.-(1) The Authority may, on receipt of a complaint in this behalf or on the recommendation of the competent authority, revoke the registration granted under section 4, after being satisfied that,-

1. (a) the promoter makes willful default in doing anything required of him by or under this Act or the rules or the regulations made thereunder;
2. (b) the promoter violates any of the terms or conditions of the approval given by the competent authority;
3. (c) the promoter is involved in any kind of unfair practice or irregularities;
4. (d) act in contravention of the purposes of this Act. Explanation.-For the purposes of this clause, the term "unfair practice" means any unfair method or unfair or deceptive practice adopted for the purpose of promoting the sale or development of any real estate project including any of the following practices, namely:-
5. (a) the practice of making any statement or propagation whether orally or in writing or by visible and audio representation which,-
   • (i) falsely represents that the services are of a particular standard or grade or carry out such activities;
   • (ii) represents that the promoter has approval or affiliation which such promoter does not have;
   • (iii) makes a false or misleading representation concerning the services;
6. (b) 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.

1. (2) The registration granted to the promoter under section 4 shall not be revoked unless the Authority has given to the promoter not less than thirty 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.
2. (3) The Authority may, instead of revoking the registration under sub-section (1), permit it to remain in force subject to such further terms and conditions as it thinks fit to impose in the interest of the allottees, and any such terms and conditions so imposed shall be binding upon the promoter.
3. (4) Upon the revocation of the registration, the Authority,-
   • (a) shall debar the promoter from accessing its website in relation to that project and specify his name and details including his full address in the list of defaulters on its website;
   • (b) may recommend to the competent authority to facilitate the balance of the development works to be carried out in accordance with the provisions of section 7 in a time bound manner;
   • (c) may, to protect the interest of prospective buyers or in the public interest, issue such directions as it may deem necessary.

Obligation of Authority consequent on lapse or revocation of registration.-Upon lapse of the registration or on revocation of the registration under this Act, the Authority, may consult the Govemment to take such action, as it may deem fit, matters 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 and the decision of the Govemment shall be final:

Registration of Real Estate Agents Registration of Real Estate Agents.-(1) No real estate agent shall facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot or building, as the case may be, in a real estate project or part of it, being the part of the real estate project registered under section 3, being sold or intended to be sold by the promoter without obtaining registration under this section.

1. (2) Every real estate agent shall make an application to the Authority for registration in such form, manner, within such time and accompanied by such fee and documents as may be prescribed.
2. (3) The Authority shall, within such period, in such manner and satisfying itself of the fulfilment of such conditions, as may be prescribed,-
   • (a) grant registration to the real estate agent;
   • (b) reject the application for reasons to be recorded in writing, if such application does not conform to the provisions in this Act or the rules or regulations made thereunder: Provided that no application shall be rejected unless the applicant has been given an opportunity of being heard in the matter.
3. (4) Where on the completion of the period specified under sub-section (3), if the applicant does not receive any written communication about the deficiencies in his application or the rejection of his application, he shall be deemed to have been registered.
4. (5) Every real estate agent who is registered as per the provisions of this Act or the rules and regulations made thereunder, shall be granted registration number by the Authority, which shall be quoted by the real estate agent in every sale facilitated by him under this Act.
5. (6) Every registration shall be valid for such period, as may be prescribed, and shall be renewable for such period, in such manner and on payment of such fee as may be prescribed:
6. (7) Where any real estate agent who has been granted registration under this Act commits breach of any of the conditions thereof or any other terms and conditions specified under this Act or any rules or regulations made thereunder, or where the Authority is satisfied that such registration has been secured by the real estate agent through misrepresentation or fraud, the Authority may, without prejudice to any other provisions under this Act, revoke the registration or suspend the same for such period, as it thinks fit:

Obligations of real estate agent Obligations of real estate agent.-Every real estate agent registered under section 8 shall,-

1. (a) not facilitate the sale or purchase of any plot or building as the case may be, in real estate project or part of it, being sold or intended to be sold by the promoter which is not registered with the Authority;
2. (b) maintain such books of account, records and documents as may be prescribed and shall subject to inspection as and when required by competent authority or authority.
3. (c) not involve himself in any unfair trade practices, namely:-
   • (i) the practice of making any statement, whether orally or in writing or by visible representation which,-
4. (a) falsely represents that the services are of a particular standard or grade;
5. (b) represents that the promoter has approval or affiliation or registration which the promoter does not have;
6. (c) makes a false or misleading representation concerning the services.
   • (ii) permitting the publication of any advertisement whether in any newspaper or otherwise of services that are not intended to be offered.
7. (d) facilitate the possession of all documents, within a specific date as the allottee is entitled to, at the time of booking of any plot, apartment or building, as the case may be.
8. (e) discharge such other functions as may be prescribed.

Registration of associations.-(1) An association of allottees shall be formed by the promoter in respect of plots or buildings, in such manner as may be prescribed, within four months from the date on which occupancy certificate is issued in respect of all the building units or a minimum of sixty per cent of the allottees have taken possession of the building units or the promoter has received full consideration or other amount, for the same, whichever is earlier and in the case of a colony, an Apex Association shall be formed in such manner, as may be prescribed, in addition to the association representing all the associations in any real estate project and every such association and apex association shall be registered in such period, as may be prescribed, before the Authority by filing an application in the prescribed form along with all documents as may be prescribed and the Authority shall, give registration number to each such association.

1. (2) If the promoter fails to submit an application for registration of the association within the prescribed time, the association shall be formed by the allottees and the same shall be registered before the authority.
2. (3) Save as otherwise provided in this Act, the association shall have such rights and duties as may be prescribed.