The main duties a promoter carries under the Real Estate (Regulation and Development) Act, 2016. General legal information only.
Registration before marketing
Section 3 requires registration of a project with the Authority before it is advertised, marketed, booked or sold, subject to the exemptions in the Act. Agents also need to be registered.
Money and accounts
- A specified share of amounts collected from allottees (70 per cent under section 4) must be kept in a separate account and used only for the project.
- Withdrawals are tied to the project’s progress, certified by professionals.
- A promoter cannot accept more than 10 per cent of the cost as an advance without first entering a registered agreement for sale (section 13).
Disclosure and reporting
- Keep the project’s webpage on the RERA portal updated with the status of construction and approvals.
- Do not give false or misleading information in advertisements or prospectuses.
- Furnish periodic reports required by the Authority.
After sale
- Give possession by the date in the agreement.
- Rectify structural and other defects reported within five years of possession (section 14(3)).
- Form the association of allottees and transfer common areas as the Act requires.
Consequences of default
The Authority can direct compliance, impose penalties and, for serious breaches, revoke registration. Allottees can claim interest or a refund under section 18.
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Important disclaimer: This article is general legal information, not legal advice. It does not create a lawyer-client relationship and is not an advertisement or solicitation under Bar Council of India rules. Verify current statutes, rules and judgments before relying on it.
