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Your RERA queries answered by our expert

Friday, October 13, 2017
By Ramesh S. Prabhu

It has been five months since the Real Estate (Regulation and Development) Act, 2016 (RERA) came into effect, from1st May, 2017. We are sure ADC readers would have lots of queries regarding the new real estate law. Our expert clears some doubts in the below Q&A

Q. Can a RERA registered broker sell flats of RERA registered builder? What if the broker is not empanelled with the Builder?
Ans
: Every broker registered with the RERA  is allowed to market or sell the Apartments in the project, only if such brokers also are listed as authorised broker by the promoter. In other words, without getting listed as authorised broker for a project, the broker cannot facilitate the transaction in that project.

Q.If builder has land which has no value in books then how to conduct valuation of the same to include the value of land in project cost ?
Ans
: As per MahaRERA circular dated 4th July, 2017, in order to estimate the cost of project, when the land is acquired by the builder as a gift deed or on inheritance, ASR (Annual Stamp Duty Rate) or Ready Reckoner Rate as on the date of registration of the project with RERA or the date of commencement certificate received whichever is earlier shall be considered as the land cost.  In case the property is purchased prior to 1st April, 2001, the ready reckoner value as on the date of 1st April, 2001 shall be worked out and then to such ready reckoner value shall be multiplied by the capital index to arrive at the cost of the land as on the date of registration of the project with RERA or commencement certificate of the project whichever is earlier.

Q.Can per se disputes between promoter and co-promoter be adjudicated by RERA authority, when disputes arise in revenue sharing or profit sharing or area sharing?
Ans
: RERA is a special and specific Act to deal with the regulation and development of real estate business. Any dispute between the promoter and co-promoter will have to be resolved through the civil proceedings and cannot be taken before the Real Estate Regulatory Authority. In case, because of the dispute between promoter and co-promoter, the allotees or the flat purchasers are affected or possession is delayed, the section 7 of RERA comes into effect which is the cancellation or revocation of registration.If the registration of the project is revoked, the Authority shall take necessary measures to complete the project as per section 8 of the Act. It is the obligation of the Authority on revocation or cancellation or lapse of registration to take over the project and hand over to the association of allottees or to competent Authority or in any other manner to complete the project. Post RERA, promoter and co-promoter continue to dispute, both may loose the project. Therefore, they will have to compromise and settle the dispute before it is too late. Thus dispute between them does not come in the jurisdiction of RERA.

Q.Is it mandatory for an Architect to enter into an agreement before sale of flat as per RERA with effect from 1st May 2017? Is a copy of the agreement with Architect to be disclosed before RERA authority at the time of registration with RERA?
Ans
: As per the model agreement as per Annexure A prescribed by MahaRERA 2017, read with Rule No. 10 and section 13 of RERA,2016, the promoter needs to execute the standard agreement with the Architect as per the provision made by council of architecture. As per section 4 and Rule 3 of MahaRERA, the promoter has to upload the names of all professionals including the Architect. The agreement executed by the promoter will have to be verified by the RERA auditor appointed by the promoter as per the declaration submitted to RERA in form B in reference to section 4(2)(l)(D) of the Act.

(Ramesh S. Prabhu is Chairman, Maharashtra Societies Welfare Association)

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