This is a presentation on the new Real Estate Act, 2016 which after a long 9 years came into force. It is considered to be consumer concentric Act enabling the consumers to enforce their rights smoothly under the law.

1. REAL ESTATE (REGULATION &
DEVELOPMENT) ACT, 2016
By: Narmdeshwar
Legal Intern: Kaden Boriss
University: D.S. National Law University, Vizag.

2.  Lack of clear land titles.
 Developer changing the layout or building plans after
purchase.
 Diversion of funds.
 Delay in Completion.
 Rely on which information?
Why Real Estate Act, 2016?

3. PART I: PRELIMINARY
 Section 2k "carpet area" means the net usable floor
area of an apartment. Different from Super Built-up
area.
 (zm) "real estate agent" means any person, who
negotiates or acts on behalf of one person in a
transaction of transfer of his plot, apartment or
building.
 (zn) "real estate project"

4. PART II: REGISTRATION PROJECT AND
REAL ESTATE AGENTS
 Mandatory Registration: Property transactions will
now be subject to a regulator — the state level Real
Estate Regulatory Authority (RERA).RERAs are
intended to perform the same role for your
property transactions as the SEBI does for
security transactions in the capital markets.
 When registration not required? Threshold can be
reduced
 Does Real estate agents need to register with
RERAs?

5. Cont…
 Seventy per cent of the amounts realised shall be
kept in scheduled bank.
 Q. Will this not delay and enhance the cost of
project?
 The architects and the accountants are all paid by
builders.

6. PART III: FUNCTIONS AND DUTIES OF
PROMOTER
 Obligations of promoter regarding veracity of the
advertisement.
 No deposit or advance to be taken by promoter
without first entering into agreement for sale.
 Adherence to sanctioned plans.
 What happens in case of ‘structural defects’?
 Obligations of promoter in case of transfer of a real
estate project to a third party.
 What if the promoter fails to complete or is unable to
give possession of an apartment? Two Options with
allottees.

7. PART IV: RIGHTS AND DUTIES OF
ALLOTTEES
 RIGHTS CARVED OUT OF DUTIES OF
PROMOTER.
 Responsible to make necessary payments
 Take physical possession of the apartment within 2
months.
 Formation of an association or society or cooperative
society of the allottees.

8. PART V AND VII: THE REAL ESTATE
REGULATORY AND APPELANT AUTHORITY
 TO BE ESTABLISED IN ONE YEAR consisting of a
Chairperson and not less than two, whole time appointed
by the appropriate Government on the recommendations
of a Selection Committee.
 call upon any promoter or allottee or real estate agent at
any time to furnish in writing such information or
explanation relating to its affairs as the Authority may
require and appoint one or more persons to make an
inquiry in relation to its affairs.
 Real Estate Appellate Tribunal
(Will handle appeals from RERA)(Have to adjudicate
cases within 60 days)
↑
 RERA (Real Estate Regulatory Authority)
(Have to dispose complaints within 60 days)

9. PART VI: CENTRAL ADVISORY COUNCIL
 The functions of the Central Advisory Council shall
be to advise and recommend the Central
Government on
 Policy Issues,
 Implementation of the Act,
 Consumer Interest,
 Foster Real Estate Sector.

10. PART VIII, IX AND X: OFFENCES,
ACOUNTS-AUDITS AND MISCELLANEOUS
 Penalty on non-registration, false information, non-
compliance of decisions etc.
 'Real Estate Regulatory Fund’.
 Bar of jurisdiction and Cognizance of offence.

11. CHALLENGES ALWAYS REMAIN
 “CONCURRENT LIST”.
 RULES ARE YET TO BE ON THE PAPER.
 If the registration is revoked by the regulatory
authority, who will complete the construction?

12. CONCLUSION
Q. WILL THE NEW REAL ESTATE ACT BE A GAME
CHANGER?
THANK YOU!