FAQ
FAQ
Frequently Asked Questions
What are the objects and reasons for which the Real Estate ( Regulation and Development) Act 2016 has been framed?
The Real Estate Act is intended to achieve the following objectives:
- ensure accountability towards allottees and protect their interest;
- infuse transparency, ensure fair-play and reduce frauds & delays;
- introduce professionalism and pan India standardization;
- establish symmetry of information between the promoter and allottee;
- imposing certain responsibilities on both promoter and allottees;
- establish regulatory oversight mechanism to enforce contracts;
- establish fast- track dispute resolution mechanism;
- promote good governance in the sector which in turn would create investor confidence.
If the Real Estate Project under the Act, What would be the implications ?
The promoter is liable to a penalty which may extend up to 10% of the estimated cost of the real estate project. On continued violation, he shall be punishable with imprisonment for a term which may extend up to three years or with fine which may extend up to a further ten per cent of the estimated cost of the real estate project, or with both.
In case of delay in getting possession from the promoter, will the buyer be entitled to get interest on the amount paid by him, for such delayed period ?
Yes. In accordance with the model form of agreement, if the Promoter fails to abide by the time schedule for completing the project and handing over the [Apartment/Plot] to the Allottee, the Promoter agrees to pay to the Allottee, who does not intend to withdraw from the project, interest as specified in the Rule, on all the amounts paid by the Allottee, for every month of delay, till the handing over of the possession.
Can a promoter or a real estate agent also file a complaint against a buyer ?
Yes. An aggrieved person having any interest in the registered real estate project can file complaint.
In case of joint development with land owner on revenue share basis or area share basis whether land owner’s component could be withdrawn from designated account of 70./.
The Act makes both the Promoters and the land owner or any such parties which are beneficiary of a sale of a project and receive payments from Allottees, as Co- Promoters and hence liable to adhere to the provisions of the Act and Rules and Regulations made there under. The withdrawal of money would be subject to provisions of Section 4 of the Act and the Telangana Real Estate (Regulation and Development Rules, 2017 made there under.
Registration: Are various certificates (Architect, Engineer, CA) required at the time of registration ?
Yes.
Will listing websites / newspapers / exhibition promoting real estate needs to take agent’s license?
Yes, if they intend to facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a registered real estate project being sold by the promoter in any planning area.
What is the obligation of the promoter towards return of amount and compensation to the Allottee?
Section 18 of the Act provides for provisions as regards various situations in which the Allottee would be compensated by the promoter due to delay in completion of the project etc..
Is it mandatory for the promoter to obtain permissions for the real estate project before applying for registration to TSRERA
Yes, before applying for registration to TSRERA the Promoter / Developer should obtain all statutory permissions from the Competent Authorities.
How to know whether a particular Real Estate Project is not registered under the Act, What would be the implications ?
The TSRERA website would display all the registered projects. It is mandatory that the advertisement for marketing of apartments in the real estate project must carry the TSRERA registration number.
What are the provisions for an aggrieved person to lodge a complaint ?
Section 31 of the Act and Rule 34 & 35 of Telangana Real Estate (Regulation and Development) Rules, 2017 provide for filing of complaint with TSRERA, by an aggrieved person who has any interest in the registered project. The aggrieved person can file an application online as per format provided by TSRERA. It shall include the following details:
- Registration number of the project to which the complaint pertains
- Particulars of the complainant and respondent
- Facts of the case
- Relief Sought
- List of Enclosures and so on
WHEN DOES THE PROMOTER NEED TO FORM SOCIETY, ASSOCIATION ETC..
The Promoter has to ensure that an association of Allottees is formed within
two months of 60% of the total number of Purchasers have taken possession
and promoter has received full consideration from such Allottees.
For Foreign brokers registration and advertisement outside India, will same rule apply as in India?
Yes, if it pertains to a registered project under TSRERA.
Internal changes: assuming making a duplex at customer request: will this be treated as major change and require approval of other Allottees?
Please refer to section 14 of the Act
If registration is not given in 30 days, will it be deemed registration?
Yes, if the Authority fails to issue any communication about deficiencies, within 30 days of the receipt of the application for registration.
Is agent authorized to sign on behalf of his promoter / builder?
No
Incase of customers default: can developer be selective in cancelling units?
Provision of termination of agreement is covered in the Model Form of Agreement attached to Telangana Real Estate (Regulation and Development) Rules, 2017
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