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

 

https://www.reraconsultants.in/penalty-for-violation-of-provisions-under-real-estate-regulation-and-development-act-2016.php

 

 

PENALTY FOR VIOLATION OF PROVISIONS UNDER REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016

 

by Hitendra V.Hiremath

 

The Real Estate (Regulation and Development) Act, 2016 ("Act") was passed by Rajya Sabha on 10th of March, 2016 which received the assent of the President of India on 25th of March, 2016 and was published in gazette on 26th of March, 2016. Out of total 92 sections, Section 2, Section 20 to 39, Section 41 to 58, Section 71 to 78 and Section 81 to 92 came into force on 01st of May, 2016 and Section 3 to 19, Section 40, Section 59 to 70 and Section 79 to 80 came into force on 01st of May, 2017

 

The objective with which the Act passed was to promote and regulate the real estate sector by creating the Real Estate Regulatory Authority and protect the interest of consumers by creating an Appellate Tribunal. This article underlines in brief the essential information pertaining to the penalties levied for the violation of the provisions under the Act by the Developers/Promoter.

 

Chapter VIII of Act specifically deals with Offences, Penalties and Adjudication. Following are the penalties that may be levied for violation of the Provisions under Act.

1. For Non-Registration of the Project and advertising, marketing, booking, selling or offering to sell without registration of the Project:

a.    If the developer/promoter fails to register their real estate project and thereby also advertises, markets, books, sells or offers to sell the plot, apartment/building thereby violating Section.3 of the Act, then as per Section.59(1) of Act, the developer/promoter shall be liable for penalty which may extend upto 10% (ten percent) of estimated cost of the real estate project.

 

b.    Further, in case if the Developer/Promoter continues to violate the provisions of Section.3 of the Act, the Developer/Promoter shall be punishable with imprisonment as per Section 59(2) of the Act, for a term which may extend upto 3 years or with fine which may extend upto a further 10% (ten percent) of cost of the real estate project or with both.

 

2. Providing false information while registering the Project: If any Promoter/Developer provides false information while registering the Project or contravenes Section.4 of the Act, then as per Section.60 of the Act, the Promoter/Developer shall be liable to a penalty which may extend upto 5% (five percent) of the estimated cost of real estate project as determined by the Authority.

 

3. Violation of any other provisions of Act: If the Promoter/Developer is in violation of any other sections of the Act, apart from Section.3 and 4, then as per Section.61 of the Act, the Promoter/Developer shall be liable to a penalty which may extend upto 5% (five percent) of the estimated cost of real estate project as determined by the Authority.

 

4. Failure to Comply with orders of Authority by Promoter: Failure to comply or in contravention of the orders or directions of Authority, then as per Section.63 of Act, the Promoter/Developer shall be liable to a penalty for every day during which such default continues, which may cumulatively extend up to 5% (five percent), of the estimated cost of the real estate project as determined by the Authority.

 

5. Failure to Comply with orders of Appellate Tribunal by Promoter: Failure to comply or contravention of any of the orders, decisions or directions of Appellate Tribunal, then as per Section.64 of Act, the Promoter/Developer shall be punishable with imprisonment which may extend upto 3 years or with fine liable to a penalty for every day during which such default continues, which may cumulatively extend up to 10% (ten percent), of the estimated cost of the real estate project or with both.

 

Note that, the penalties as discussed above are exclusive of the provisions under which the authority can direct the Developer/Promoter to pay compensation along with the interest to the Allottees, in complaints filed regarding veracity of advertisement or prospectus, Non-adherence to the sanctioned plans, structural defect, delay in completion and defective title of the land.

 

 

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

 

Regards,

Srinidhi Vasan | General Manager | Operations

RERA Consultants LLP

No. 1/1, Ground Floor, Unity Buildings Annexe (Income Tax Building), Bengaluru-560 027.Contact: 080-2223 3003

Mobile: +91 95355 78604 | sales@reraconsultants.in

Website: www.reraconsultants.in

 

Karnataka | Kerala| Andhra Pradesh | Tamil Nadu | Telangana

Please note, in case of filing of applications for registration of Projects and Agents, Post Registration & Quarterly Updates, we process the same on the basis of documents and information given by the Promoter/s and Agent/s. We do not take any responsibility for the same and/or give any assurance regarding the authenticity of the documents/information and successful registration of the Project/Agent.

 

DISCLAIMER: The info contained and transmitted by this electronic mail is proprietary to RERA Consultants LLP and is intended for use only by the individual or entity to which it is addressed, and may contain info that is privileged, confidential or exempt from disclosure under applicable law. If this is a forwarded message, the content of this email may not have been sent with the formal approval of RERA Consultants LLP. If you are not the intended recipient, an agent of the intended recipient or a person responsible for delivering the information to the named recipient, you are notified that any use, distribution, disclosure, transmission, printing, copying, or dissemination of this information either whole or partial, in any way, or in any manner is strictly prohibited. If you have received this communication in error, please delete this email immediately & notify RERA Consultants LLP at: accounts@reraconsultants.in

 

Blog Article

Dear Sir,

Please find attached the blog article to be posted on your website.

Regards,

Srinidhi Vasan | General Manager | Operations

RERA Consultants LLP

No. 1/1, Ground Floor, Unity Buildings Annexe (Income Tax Building), Bengaluru-560 027.Contact: 080-2223 3003

Mobile: +91 95355 78604 | sales@reraconsultants.in

Website: www.reraconsultants.in

 

Karnataka | Kerala| Andhra Pradesh | Tamil Nadu | Telangana

Please note, in case of filing of applications for registration of Projects and Agents, Post Registration & Quarterly Updates, we process the same on the basis of documents and information given by the Promoter/s and Agent/s. We do not take any responsibility for the same and/or give any assurance regarding the authenticity of the documents/information and successful registration of the Project/Agent.

 

DISCLAIMER: The info contained and transmitted by this electronic mail is proprietary to RERA Consultants LLP and is intended for use only by the individual or entity to which it is addressed, and may contain info that is privileged, confidential or exempt from disclosure under applicable law. If this is a forwarded message, the content of this email may not have been sent with the formal approval of RERA Consultants LLP. If you are not the intended recipient, an agent of the intended recipient or a person responsible for delivering the information to the named recipient, you are notified that any use, distribution, disclosure, transmission, printing, copying, or dissemination of this information either whole or partial, in any way, or in any manner is strictly prohibited. If you have received this communication in error, please delete this email immediately & notify RERA Consultants LLP at: accounts@reraconsultants.in

 

Annual Schedule of Rates – ASR Value(as mentioned in CA Certificates for updates under RERA)

Source - https://content.magicbricks.com/property-news/mumbai-real-estate-news-industry-news/key-aspects-about-asr-that-property-buyers-should-know/84818.html

Annual Schedule of Rates – ASR Value (as mentioned in CA Certificates for updates under RERA)

ASR is a government tool to find out the minimum value of a property at different locations based on various market factors. In Delhi, it is called Circle Rate whereas; in Mumbai, it is known as Ready Reckoner Rate (RR rate).

Following are some of the key aspects about ASR that property buyers should know:

- Normally, ASR is typically lower than the prevailing market rate of the property in a location;

- The government calculates the minimum stamp duty and registration charges based on the prevailing ASR value in the area;

- ASR is reviewed from time-to-time and the government tries to keep it close to the prevailing market rate in the area.

"The Annual Schedule of Rates is prepared to assess the market value of a property to calculate the stamp duty as applicable on the said property. These rates are determined by the Stamps and Registration Department of the state of Maharashtra. The ASR helps individuals find the official rates for properties in a particular area," explains senior faculty, Vidya Bhagwat, faculty department, REMI.

Experts point out various terms of ASR rates as known in the key cities across India:

- Circle Rate ­ Delhi, Bhubhaneshwar;

- Guidance Value ­ Bengaluru, Hyderabad;

- Guideline Rate (Market Value) ­ Chennai;

- Guideline Rate ­ Kolkata;

- Ready Reckoner Rates ­ Mumbai;

- Jantri Rates Gujarat.

ASR impacts the property prices:

"In cities like Bengaluru and Mumbai, the ASR is now very close to the actual prevailing market rates in most areas and for most asset classes. Thus, they are a good benchmark for the buyer. However, buyers should note that rates will vary from property to property depending on the quality of specifications, micro-location characteristics, reputation of the developer, payment terms, etc," says Amit Oberoi, head of valuation and advisory at Colliers. He further goes on to add, "It is necessary to set a realistic ASR level, so that the government can realise the actual revenue that is used for public good. Also, the government should consider lowering the stamp duty and registration rates, so that there is a greater disclosure of transaction values."

 

Written by Vinay Thyagaraj,  is a Chartered Accountant and a Law Graduate, founder partner at M/s. Venu & Vinay, Chartered Accountants, Bengaluru, has over 20 years of experience in Business Consulting, Structuring and Taxation. Travelled across south Indian states to deliberate, discuss, present technical papers on RERA. Presented more than 100 technical sessions on RERA to Industry Associations, Professionals, home buyers association, Law universities and for public at Large. He is also financial consultant at RERA Consultants LLP. He can be reachable on vinay@vnv.ca

 

Who Should issue Audit Report under RERA

Who Should issue Audit Report under RERA

Background and Provisions of the Act

 

Certificate by a Chartered Accountant is to be issued with set of objects and intentions with an intent to express the professional opinion or state the facts based on the information, explanation, documents received from the promoter.

 

Proviso to Sec 4(2)(l)(D) of RERD Act having reference and requirement of CA Certificate – which is reproduced below -

 

2^nd Proviso - Provided further that 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 completion of the project:

 

3^rd Proviso - Provided also that the promoter shall get his accounts audited within six 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 utilised for the project and the withdrawal has been in compliance with the proportion to the percentage of completion of the project

 

Chartered Accountant Certificates under RERA

 

Sl No	Certificate for	Act / Rule Ref	Certifying
1	On every withdrawal from project Bank Account	RERA Act –   2nd proviso to sec 4(2)(l)(D)	Withdrawal of money from project bank account is in proportion to the % of completion of the project
2	Annual Audit under RERD Act	RERA Act –   3rd proviso to sec 4(2)(l)(D)	1.       Amounts collected from Allottees for a particular project have been utilised for the same project and   2.      the withdrawal has been in compliance with the proportion to the % of completion of the project

 

 

What is the understanding of statutory Auditor as per RERA

 

1.      As per Sec 4(2)(l(D) proviso 3 mandates accounts shall be audited by a Chartered Accountant in practice.

2.      Act does not say whether Tax, Statutory or any other Chartered Accountant

3.      However, Regulations / Notification issued by State RERA Authorities have mentioned on the header of the format of certificate - Stating Statutory Auditor of the Promoter shall issue the Report

4.      Question is Who is Statutory Auditor?

5.      Is any Act defining Statutory Auditor? Whether Co's Act 2013 defines Statutory Auditor?

6.      If we Consider Statutory Auditor means the Auditor as per Co's Act 2013, if so, what about other than Co's. Say, Proprietor or Partnership or Housing Society?

 

7.      Considering the all the above facts, i am of the opinion that Auditor appointed under any Statute can certify the Accounts under RERA (may be Auditor as per Sec 139 of the Co's Act, Tax Auditor, GST Auditor etc) as long as Chartered Accountant holding Certificate of Practice (not an employee of the promoter, who is on Role of the promoter)

 

8.      RERA Regulators are differentiating the Chartered Accountant for issuance of a periodical certificate for withdrawal of funds based on % of Completion method -  hence Chartered Accountant issuing Certificate for withdrawal of funds shall be different for Issuance of RERA Audit Report under Proviso 3 to Sec 4 (2)(l)(D) of the RERA

 

 

Objective of RERA Audit Certificate by a CA  -

 

1.      Amounts collected from Allottees for a particular project has been utilised for the same project and   2.      the withdrawal has been in compliance with the proportion to the % of completion of the project

 

Note –

1)      Currently, the regulators in most of the states have a prescribed format.

2)      This certificate shall be issued by a CA holding COP

3)      CA to collect project financial information from the promoter.

4)      Collect estimated cost of the project, escalation if any and details thereon

5)      CA to collect and consider all professional certificates issued from time to time for withdrawal of the project.

 

This certificate shall be submitted to authorities and is a public document. It could be made available for viewing at the portal of the regulators in the respective states. The comments in this note are purely a matter of interpretation and not binding on any regulatory authorities.  Therefore, there can be no assurance that the regulatory authorities will not take a position contrary to our comments or views

 

Written by Vinay Thyagaraj,  is a Chartered Accountant and a Law Graduate, founder partner at M/s. Venu & Vinay, Chartered Accountants, Bengaluru, has over 20 years of experience in Business Consulting, Structuring, and Taxation. Traveled across south Indian states to deliberate, discuss, present technical papers on RERA. Presented more than 100 technical sessions on RERA to Industry Associations, Professionals, home buyers association, Law universities, and for the public at Large. He can be reached on vinay@vnv.ca

Kerala RERA Rules Kerala Real Estate(Regulation & Development) Rules, 2018 -

Kerala RERA Rules

Kerala Real Estate (Regulation & Development) Rules, 2018

 

Kerala has notified the Kerala Real Estate (Regulation and Development) Rules 2018 on 18^th June 2018 vide GO (P) No. 46/2018/LSGD and has constituted Kerala Real Estate Regulatory Authority on 5^th October 2019.

 

Sri. P.H. Kurian IAS (Retd) has assumes charge as Chairman and Adv.Preetha P Menon has assumed charge as member.

 

Authority has started the series of awareness program to educate the Promoters/Builders/Real Estate Agents, Allottees/Home buyers/consumers and various stake holders.

 

Application, forms, affidavits etc are published in the Kerala RERA Website for registration of Real Estate Projects and Real Estate Agent and guidelines there on.

 

This note will help the reader to understand the Kerala RERA Rules, applicability for Registration real estate project, documents, information required to file application for grant of registration, extension, revocation.

 

Details	Details
Official Kerala RERA Website	https://rera.kerala.gov.in/
Kerala RERA Office Address	Swaraj Bhavan, 5th Floor, Nanthancode, Kowdiar PO, Thiruvananthapuram 695003
Email	info.rera@kerala.gov.in
Filing of Application	Manual Filing / Submission till webportal is ready

 

 

 

Authenticated Copy – Rule 2('C) of Kerala RERA	Self-Attested copy of any document required to be provided
Registration of Real Estate Projects with Authority – Rule 3
Rule 3(1)	Application in Form A – in Triplicate For New Projects (means all Statutory Approvals and permits have been obtained on or after 1-5-2017)
Rule 3(2)	Application in Form A 1 – in Triplicate For Ongoing Projects (means Occupancy Certificate has not been issued as on 1-5-2017)
Registration Fee – Rule 3(4) Note - 1)     Project involving construction and sale of building, total registration fee = plot fee + buildings fee 2)     Floor Area – as specified in permit issued by competent authority	1)     By way of Demand Draft drawn on any scheduled Bank 2)     Fee Amount is as per the Table -   Type of Project Rs. Per Sq Meters Fees payable On Plots 10 Plot Area Building – Ongoing Projects – Form A1 25     Total Floor Area Building – New Projects – Form A 50 Building – Commercial or any other projects 100
List of Documents – Rule 3(5)	1)     All documents as per Sec 4(2) 2)     Form B (Sec 4(2)(l) Clauses A to F)
Withdrawal of Application Rule 3(6)	1)     Application for withdrawal shall made within 30 days of filing application for grant of registration 2)     Authority will retain 10 % or Rs.50,000 whichever is more towards processing fees 3)     Balance will be refundable within 30 days from such withdrawal
Rule 4 – Additional information and documents to be furnished -	1)     PAN 2)     Audited BS, ITR for preceding 3 years 3)     No of Parking Available 4)     Legal title Deed 5)     Details of encumbrance on Project Land 6)     Development Agreement / MOU
Rule 5 – Disclosure in case of Existing (ongoing) Project	1)     All documents as prescribed in Rule and Act 2)     Status of the Project and Extent of Completion 3)     Sold details - Size of the apartment in Carpet Area 4)     Sold details – area of plots

 

Rule – 6 Withdrawal of sums deposited in separate bank account – Sec 4(2)(l)(D)	1)     Land cost – shall be cost incurred by the promoter (whether outright purchase / lease charges etc) 2)     Construction Cost – cost incurred towards on-site and off-site expenditure for physical development of the project
Rule 7 – Grant of Registration of the Project	1)     Registration Certificate in Form C 2)     Rejection shall inform in Form D (however 15 days or such time may be provided to rectify the defect application before rejection)
Rule 8 – Extension of registration of Project	1)     Before expiry of 3 months prior to expiry of registration granted 2)     Fees – 50 % of registration fees 3)     Reason for such delay 4)     Documents 5)     Force majure – fees may be waived off 6)     Extensions maximum of 1 year
Rule 9 – Revocation of registration	As per Sec 7 of the Act

 

 

Rule 10 – Agreement for Sale	As per Annexure A
Rule 11 – Real Estate Agent Registration	1)     All Documents 2)     Application Form in Form G 3)     Fees a.      Individual Rs.25,000 b.     Non Individual Rs.2.50 Lacs
Rule 18 – Interest Rate, Timelines	1)     SBI PLR + 2 % 2)     Refund with in 45 days from the due date (AFS Clause 7.5)

 

 

 

 

 

Vinay Thyagaraj is a Chartered Accountant and a Law Graduate, founder partner at M/s. Venu & Vinay, Chartered Accountants, has over 18 years of experience in Business Consulting, Structuring and Taxation. Presented business, taxation technical papers and participated at various symposiums, forums. Regular speaker at various regional TV channels on financial matters, budget etc. Has been working on The Real Estate (Regulation and Development) Act 2016 since the inception of the Act with a view to understand financial, business impact of the Act on the organization and Industry, helping promoters to implement the best practices under RERA. Travelled across south Indian states to deliberate, discuss, present technical papers on RERA. Presented more than 100 technical sessions on RERA to Industry Associations, Professionals, home buyers association, Law universities and for public at Large. He is also financial consultant at RERA Consultants LLP