https://www.reraconsultants.in/advertisement-of-real-estate-project-dos-and-donts.php

 

 

ADVERTISEMENT OF REAL ESTATE PROJECT - DO'S AND DONT'S

 

by Rera Consultants LLP

 Authored by Mr. Hitendra V.Hiremath, 

presently works as Legal Consultant with RERA Consultants LLP and has earlier worked as In-House Counsel at M/s. Shriram Properties Private Limited and thereafter with an investment banking firm Capaegis at Bengaluru, Karnataka, India

A Real Estate project can be advertised after registration with concerned real estate regulatory authority subject to compliance of the necessary directions as per the provisions of The Real Estate (Regulation and Development) Act, 2016 ("RERA").

 

The advertisement materials under RERA may includes any materials describing the details of project which is marketed and advertised through the Short Message Service (SMS), e-mails, hoardings, prospectus, brochures, newspaper, leaflet, radio, television, social media platforms, websites and/or any other forms of media.

 

As per Section.11 (2) of RERA and as per the standard rule of practice of advertisement of real estate projects, it is recommended that the Promoter to adhere to the following guidelines to advertise the real estate project:

 

●     Registration Number of the project must be displayed prominently in the advertisement materials.

●     Website address of the Real Estate Regulatory Authority must be included.

●     All the pictures with any information in the advertisement materials must be clear and near actual without any false, misleading information.

●     Testimonials must be original and genuine.

●     The Specifications as promised under the advertisement materials shall form part of Agreement for Sale.

●     The information being provided through advertisement materials should not contravene any provisions of the RERA.

●     The project website has to updated periodically based on the progress of the development.

●     The Disclaimers must be appropriate and should not deny the responsibilities and duties and thereto contravene the provisions of RERA.

Also prior to advertisement and marketing of the project by the Channel Partners and Agents, they should be registered with Real Estate Regulatory Authority and only thereafter they shall be entitled to advertise and market the project following all the guidelines as aforementioned.

 

Marketing managers, Customer Relationship Managers, Sales Managers and Agents should be aware of the provisions of the RERA.

 

Further, recently Andhra Pradesh Real Estate Regulatory Authority has issued guidelines for advertisement of real estate project along with Andhra Pradesh Real Estate Regulatory Authority authorized stamp and where it must be shown in the advertisement materials of a real estate project. Please visit the following website of Andhra Pradesh Real Estate Regulatory Authority https://www.rera.ap.gov.in/RERA/Views/AdvertisementGuidelines.aspx for more details and information.

 

Note that, in case of any veracity in the advertisement materials causing any loss and damage to the allottees / purchasers, then allottees / purchasers shall be compensated and are entitled to withdraw from the project wherein entire amounts has to be refunded with applicable interest and compensation. At such instance, the authority under Section.61 of RERA is also entitled to levy a penalty of upto 5% of the total project cost.

 

The promoters can adhere to recommended guidelines as aforementioned, these guidelines are as per the provisions of the RERA and as per the standard rule of practice of advertisement. Please note that the concerned Real Estate Regulatory Authorities may come with standard guidelines.

 

The Promoters must be very diligent while drafting the contents, disclaimers in the advertisement materials and not to make any false representations.

 

DISCLAIMERS

●     This post underlines the information as per the applicable provisions of the Real Estate (Regulation and Development) Act, 2016; and

●     We recommend the Promoters to seek the assistance of the Professionals involved in the real estate practice in case of any queries, clarifications with respect to advertisement of the real estate project.

 

CONTACT

For any other details, clarifications, assistance, advise and other services, please visit www.reraconsultants.in; or can get in touch with us at 080 - 2223 3003 or email to consult@reraconsultants.in