The Act makes both Promoters and the landlord or any other parties who are beneficiary for the sale of a project to receive payments from allottees as Co-Promoters. Hence, they are liable to adhere to the provisions of the Act and Rules and Regulations made thereunder. In order to fulfill compliance of Section 34 (b) of the RERA Act, 2016, the authority must ensure that all the disclosure by a promoter to the authority with regard to their respective Real Estate project are made available on its website.
Disclosure by Promoter under MAHARERA
Section 2 (k) of the MAHARERA Rules, 2017, “disclosure” means that the information and all documents to be uploaded by a promoter on the website of the authority also the information and documents, which he is liable to give or produce under the Act to the public at large through print media, electronic media, it must include the communications made to the authority.
Unique disclosures in the particular State
According to MAHARERA Rules, 2017[1], the following additional disclosure shall be made on the RERA Website by the promoter.
- The proposed layout plan of a whole project and Floor Space Index proposed to be consumed in the whole project, as mentioned by the promoter, must be disclosed.
- The architecture and design methods, earthquake-resistant, and other such measures to be adopted for buildings and for common areas and the layout plan of the real estate project.
According to PUNJAB RERA Rules, 2017, the following additional disclosure must be made on the RERA Website by the promoter.
- The details of encumbrances for a proposed land including details of any rights, title, interest, dues, litigation, and name of the party or non-encumbrance certificate through an advocate having experience of at least 10 years from the revenue authority not below the rank of Tehsildar, as the case may be.
According to APRERA Rules, 2017, the following additional disclosure by promoter shall be made on the RERA Website by the promoter.
- Within the period of 15 days from the receipt of the Login ID and password from the authority, the promoter shall enter all the required documents, plans, and information of the project to be published on the RERA Website.
- The details of insurances obtained by a promoter regarding the title and construction of the project.
- The particulars in respect of a design, type of concrete, material to be used in the construction of the building and the technology, prefabricated, precise, earthquake resistance
Read our article:Guide: Duties of Promoter under RERA
Some of the general points applicable to rules of all the States
- The promoter has to disclose the size of an apartment based on carpet area even if earlier sold on any other basis such as super area, built-up area, etc. which must not have any effect on the previous agreement entered into between a promoter and an allottee.
- The number of open parking areas and the number of covered parking areas available in the real estate project.
- Copy of a legal title deed reflecting the title of a promoter to the land on which development is proposed to be developed along with legally valid documents with authentication of such title where the owner is other than a promoter.
- The details of encumbrances related to land include any rights, title, interest, or name of any party in or over such land and all the details.
- In a plotted development case, the promoter must disclose the area of the plots sold to allottees, including the extent of the share of common areas and amenities.
- The promoter must disclose the time period originally given to the allottees for completion of the project at the time of sale, including the delay for which the period must start with the extent of development already completed.
- The promoter must submit a certificate from a practicing Chartered Accountant, certifying the balance amount of receivables from the apartments sold in respect of which agreement has been executed and estimated amount of receivables in respect of unsold apartments or premises calculated at the prevailing ASR rate on the date of the certificate.
- An annual report including audited profit and loss account, balance sheet, cash flow statement, Director’s report, and the auditor’s report of the promoter for the immediately preceding 3 financial years.
The disclosure by promoter about the insurance of Project
Promoter has to obtain the insurance as notified by the State Government. So insurance will be mandatory only after the State Government issues the Notification. According to the Act, the State Government can prescribe various types of insurance, including the following.
- Title of land and building as a part of the real estate project
- Construction of a real estate project.
The promoter is liable to pay an insurance premium before transferring the same to the allottee or association of allottees. The documents related to insurance will be handed over to the association of allottees when the same is formed.
Conclusion
The project finance taken by promoters from financial institutions be withdrawn from designated 70% account. It must be declared when RERA registration is done, subject to provisions of Section 4 of the Act, and RERA Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest, and Disclosures on Website Rules, 2017 made thereunder. However, the money withdrawn should be utilized towards the construction expenses of the project on priority. At Corpbiz, we help our clients in obtaining licenses without any problem and unnecessary effort.
Read our article: What is Phase-wise RERA Registration?
