Telangana RERA – Major differences compare to Act and other State Rules -

                                                          

Government of India has enacted Real Estate (Regulation and Development) Act, 2016 on 26/3/2016.

 

 

Telangana State have notified the Rules and are Gazetted on 04-08-2017 BY ORDER AND IN THE NAME OF THE GOVERNOR OF TELANGANA Mr. SUNIL SHARMA, PRINCIPAL SECRETARY TO GOVERNMENT (TR&B) & SECRETARY TO GOVERNMENT (MA&UD) (i/c) - G.O.Ms.No.202 dated 31^st July 2017

 

These rules are called Telangana Real Estate (Regulation and Development) Rules, 2017

 

Gazetted on 04-08-2017 and effective

 

In order to educate, guide the Promoters, Agents, Allottees, our Consultants have prepared this smallbook on decode of – Telangana RERA Rules

 

 

Questions	Provisions & Analysis
Applicability of the Telangana RERD Rules 2017 -	These Rules are applicable to all Real Estate Projects whose building permissions have been approved on or after 01.01.2017 by the Competent Authorities viz., UDAs / DTCP / Municipal Corporations / Municipalities / Nagar Panchayats / TSIIC
Ongoing Projects Excluded	Ongoing projects having Completion Certificate as on 4th Aug 2017
Time Limit for Filing of Application for Registration of ongoing project	Within 3 Months from date of Rules notification   4th Aug 2017 to 3rd Nov 2017 (3 months from 4th Aug 2017)
Saleable Area	Carpet Area + Exclusive veranda + Exclusive balcony + Exclusive terrace + the proportionate share of Common Areas + any other Areas Specifically mentioned in Sale Agreement
Parking area	Means a covered or open area which is sufficient in size to park vehicles and which may be provided in the basements and/or stilt and/or podium and/or in the form of independent structure built for providing parking spaces and/or parking provided by the mechanized parking arrangements.
Land Cost	The costs incurred by the Promoter   1.      Acquisition of ownership and title 2.      lease charges, 3.      Interest Costs, 4.      Overhead cost, 5.      Marketing and/or brokerage costs, 6.      Legal cost 7.      Supervision cost 8.      Security deposits to land owner in case of JDA 9.      TDR Costs 10.  Paid to outgoing developer to relinquish ownership and title 11.  Stamp Duty, Transfer charges, Registration fees, land/zone change conversion charges, NALA charges, any taxes in relation to Land
Cost of construction	1.      Incurred by the Promoter towards 2.      On-site and off-site expenditure 3.      Mobilization advances to contractors, 4.      Procurement advances to vendors, 5.      Construction equipment, 6.      Site preparations 7.      Onsite and offsite construction activities, 8.      Payments/ instalments to local authority, 9.      Expenditure for the construction, 10.  Marketing and sale of the project 11.  Fees, Charges, Interest etc. and taxes and penalties to SG/CG/to any govt authorities 12.  Principal Sums 13.  Interest on Loans
Ongoing Project	a Project where development is going on for which Occupancy Certificate or Completion Certificate has not been issued Excludes - such Projects for which building permissions were approved prior to 01.01.2017 by the Competent Authorities
Application for Registration –	In writing in Form ‘A’ annexed to this order, in triplicate, until the procedure is made web based for filing of such application
EC Certificate from Advocate or Tahasildar	Shall be accompanied by Application
Fees for Registration of Real Estate Project   (same ass Karnataka)	Type Description Upto 1000 Sq Mtr Above 1000 Sq Mtr Maximum Fees     INR/mtr INR/mtr INR Group Housing Apartment / villa 5 10 500,000 Mixed Res / Commercial 10 15 700,000 Commercial Commercial 20 25 1,000,000 Plotted Land   5 200,000
Real Estate Agent Registration Fees	For Individual – Rs. 10,000 Other than Individual – Rs. 50,000
Interest Payable by allottee and Promoter	Highest SBI MCLR + 2 % (Same as KA)
Refund time for promoter	90 days from the date of due (Act 45 days, KA 60 days, TN 90 days)
Registration Form	FORM ‘A’ – Application for Registration of Project FORM ‘B’ – Affidavit cum Declaration by Promoter FORM ‘G’ - Application For Registration Of Real Estate Agent   (information required as same as Karnataka)
Compounding of offences	10 % of estimated real estate project cost (KA – upto 10 %)
ANNEXURE  [See rule 38] AGREEMENT FOR SALE (Important clauses in Agreement for Sale)
Inclusion of Saleable Area in the Agreement     By including the definition of Saleable Area - Gives clarity to the buyer	The Allottee had applied for an apartment in the Project vide application no. ___________ dated __________ and has been allotted apartment no. ___________ having carpet area of ______ square feet, exclusive verandahs, balconies, terrace area of ________ sq. feet, totally having a saleable area of ________ sq. feet type ________, on ____ floor in [tower/block/building] no._______ (“Building”) along with garage/covered parking no. __________ admeasuring ________ square feet in the _______________[Please insert the location of the garage/covered parking], as permissible under the applicable law and of pro rata share in the common areas (“Common Areas”) as defined under clause (n) of Section 2 of the Act (hereinafter referred to as the “Apartment” more particularly described in Schedule A and the floor plan of the apartment is annexed hereto and marked as Schedule B);
DEFECT LIABILITY - It is agreed that in case any structural defect or any other defect in workmanship, quality or provision of services for 5 YEARS       Specifically excludes from Defect Liability	Notwithstanding anything contained in the above clause the following exclusions are made -   a.       Equipment (lifts, generator, motors, STP, transformers, gym equipment etc) which carry manufacturer’s guarantees for a limited period. Thereafter the welfare association /society shall take annual maintenance contract with the suppliers. The Promoter shall transfer manufacturer’s guarantees/warrantees to the allottee or association of Allottees as the case may be. b.      Fittings related to plumbing, sanitary, electrical, hardware, etc. having natural wear and tear. c.       Allowable structural and other deformations including expansion quotient. d.      The terms of work like painting etc. which are subject to wear and tear   The allottees shall maintain the apartments in good tenantable conditions and carry out the internal repairs for the upkeep of the apartments. The association of the allottees or its assigns shall maintain the services and amenities in good condition and covered with proper AMC and insurance. The obligation of the developers shall be subject to proper maintenance and upkeep of the apartments/services and amenities by the allottee or the association of the allottees as the case may be
Additional Clauses / paragraphs   Clause 1.3	The Promoter shall not be liable for any manufacturing or other defects of any branded inputs or fixtures or services of any third party mentioned in the schedule/annexure to this agreement, unless it results in structural defect. The Association of Allottees shall take the responsibility for proper safety, maintenance (including continuance of annual maintenance/insurance contracts/agreements) and upkeep of all the fixtures, equipment and machinery provided by the Promoter, for which the Promoter shall not be liable after handing over.
Amenities shall be available only for use and enjoyment of the Allottees of the Project.   Clause 1.9	It is agreed that the Project is an independent, self-contained Project covering the said Land and is not a part of any other project or zone and shall not form a part of and/or linked/combined with any other project in its vicinity or otherwise except for the purpose of integration of infrastructure for the benefit of the Allottee (like club house). It is clarified that Project’s facilities and amenities shall be available only for use and enjoyment of the Allottees of the Project.
Force Majeure – includes   Clause 7.1	Delay or failure due to war, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature or any Court stay or Government order affecting the regular development of the real estate project
Procedure for taking possession   Clause 7.2	The promoter shall not be liable for any defect or deficiency occasioned on account of any act or omission on the part of the allottee or any authority or third party on whom the promoter has no control
Cancellation by Allottee   Clause 7.5	The balance amount of money paid by the allottee shall be returned by the promoter to the allottee within three months of such cancellation or at the time that the Promoter is able to resell the said Apartment/Plot to another purchaser, whichever is later.
Representations And Warranties Of The Promoter	There are no litigations pending before any Court of law or Authority with respect to the said land or Project except those disclosed in the title report   No notice from the Government or any other local body or authority or any legislative enactment, government ordinance, order, notification (including any notice for acquisition or requisition of the said property) has been received by or served upon the Promoter in respect of the said Land and/or the Project except those disclosed in the title report.
The Allottee/s or himself/themselves covenants with the Promoter     11 clauses are included and making Allottees and Association responsible -	1        To maintain the Apartment at the Allottee's own cost in good and tenantable repair and condition 2        Not to change/alter or make addition in or to the building in which the Apartment or any part without the consent of the local authorities, if required. 3        Not to store in the Apartment any goods which are of hazardous, combustible or dangerous nature or are so heavy as to damage the construction or structure of the building 4        Negligence or default of the Allottee in this behalf, the Allottee shall be liable for the consequences 5        To carry out at his own cost all internal repairs to the said Apartment and maintain the Apartment in the same condition 6        Time to time for protection and maintenance of the said building and the Apartments therein and for the observance and performance of the Building Rules, Regulations and Bye-laws for the time being of the concerned local authority and of Government and other public bodies 7        Pay increase in local taxes, water charges, insurance and such other levies
Default by Allottee	The amount shall be repaid by the Promoter within a period of ninety days after termination or the date on which the Promoter is able to resell the Apartment/Plot to another purchaser, whichever is later
MAINTENANCE OF THE SAID BUILDING / APARTMENT / PROJECT	All other infrastructural facilities, including the equipment like lift, elevator, mechanical, electrical or electronic equipment, STP, etc., shall always be covered by appropriate annual maintenance agreements and insurance agreements with the authorized service providers and the costs of such AMC and Insurance shall be part of the maintenance charges payable by the occupants.  Unless the possession is delivered to the allottee, the Promoter shall be the occupant in respect of any plot/apartment/building
Formation Of Association Of Allottees And Consent Of Allottees	The Promoter shall submit an application to the Registrar for registration of the Association of Allottees as a society under the A.P. Societies Registration Act, 2001 (as applicable to the state of Telangana), within two months from the date on which the occupation certificate in respect of such project is issued   and a minimum of sixty per cent of the total Allottees in such a project have taken possession and the Promoter has received the full consideration from such Allottees. All the Allottees on payment of full consideration shall become members of such Association of Allottees formed by the Promoter