Duties and Functions of Developer
With the enactment of RERA, 2016, certain duties, responsibilities and functions are imposed on the promoter / developer. The promoter is primarily responsible to get the real estate project registered with RERA.
Following are the duties, responsibilities, and functions of the
promoter/developer: -
- Details to be disclosed on the RERA website – Apart from the details enlisted in section 4(2) of the Act, the promoter / developer is required to disclose details of registration approved by the Authority, updated list of number and types of apartments or plots in the real estate project which have been booked, updated list of number of garages in the real estate project which have been booked, list of approvals obtained and pending for the real estate project and publish the status of the project. All the above information is required to be updated on a quarterly basis.
- Advertisement or Prospectus by the Promoter – The promoter / developer is entitled advertise a real estate project only after registration of the project with RERA i.e. a promoter / developer cannot even advertise or promote the real estate project without getting it registered first. The advertisement or prospectus of a real estate project shall mention the address of RERA website along with RERA registration number of the real estate project. Further, the Act requires that said address and registration number shall be easily visible and shall be mentioned prominently on the advertisement and / or prospectus.
- Information to the allottee by the promoter – In addition to the information accessible on RERA website, the promoter / developer shall also be liable to make available to the allottee: the sanctioned plans, layout plans along with specifications as approved by the competent authority, stage wise time schedule of completion of project including provisions for civic infrastructure like water, sanitation and electricity. The promoter / developer is required to make above information to the allottee at the time of issuing allotment letter or booking letter to the allottees.
- Formation of association of allottees – The promoter shall enable the formation of an association of allottees. Such an association can be an association, co-society, company, federation or such other association under the applicable laws. The promoter is responsible only to ‘enable’ the formation of association of allottees and not to form such association. Therefore, in the event where despite of formation and providing co-operation for enabling the formation of association, the association is not formed then it cannot be said that the promoter has defaulted under RERA. The promoter / developer shall make an application for formation of association within 3 months from the date on which 51% of total number of allottees have booked their apartments.
- To obtain completion certificate or occupancy certificate or both from the concerned competent authority and make it available to the allottees individually or to the association of allottees.
- To obtain lease certificate and make it available to the association of allottees, if the real estate project is situated on a leasehold land. Such lease certificate should specify the duration of lease and should certify that all dues and charges in regard to the leasehold land have been paid.
- To provide and maintain the essential services till the taking over of the maintenance of the project by the association of allottees. The promoter shall be entitled to receive reasonable charges from the association of allottees for providing and maintaining such services.
- Conveyance of title – On completion of the real estate project the promoter/developer is under obligation to execute a registered conveyance deed of the apartment, plot or building in favor of the allottees. Further, the promoter shall also be required to execute a conveyance deed for the undivided proportionate title in the common areas to the association of allottees or the competent authority as the case may be in accordance with the provisions of RERA.
- Obligations after conveyance – After the execution of conveyance deed, the promoter is liable for structural or any other defects within 5 years from the date of handing over of possession of the apartment, plot or buildings.
- Cancellation of allotment – The Promoter is permitted to cancel the allotment of an apartment, plot or building to the allottee only in accordance with the terms of the agreement for sale and in absence of any agreement for sale, the allotment may be cancelled only in accordance with the provisions of Indian Contract Act, 1872.