LJ University Real Estate Practices PDF

L J UNIVERSITY L J Institute of Engineering & Technology, Ahmedabad Subject : Real Estate Practices Subject Code : 017095701 Unit 7: RERA- Part 2 Faculty In-charge...

L J UNIVERSITY L J Institute of Engineering & Technology, Ahmedabad Subject : Real Estate Practices Subject Code : 017095701 Unit 7: RERA- Part 2 Faculty In-charge Mr. Ishan Trivedi Department of Civil Engineering LJIET Email-id: [email protected]  L J UNIVERSITY Project Registration When to Register? Purchase of Land/ Joint Development Title Clearance of Land Plan Approvals and Commencement Letter Registration should be done anytime between plan Application For Registration by Promoter approvals up to the start of advertisement, booking and sales. Registration to be granted/Rejected within 30 days There is no restriction on construction as long as units are not advertised or booked. Advertise, Book and Sell 2  L J UNIVERSITY Registration Documents Required Promoter Details Financial Details Land Details Promoter Incorporation – Balance Sheet Index Individual, HUF, Profit & Loss Account Sale Deed Partnership, LLP, Company, Group of Director’s Report 7/12, 6 and 8 (Revenue Individual, AOP, BOI, Cash Flow Statement Records) Competent Authority, NA Order Society Auditor Report Income Tax Return Area Development plan/ Promoters’ KYC Part Plan Acknowledgement of last Partners/Director KYC 3 years Registered Development Agreement – Circular 20 Association of Persons (AOP) , Body of Individuals (BOI), Hindu Undivided Family (HUF), Limited Liability Partnership 3 (LLP)  L J UNIVERSITY Registration Documents Required Approval from Authorities Professionals Certifications Bank Details Commencement Form 1 – Architects Bank Name certificate Certificate Account Name – ABC Approved Layout Plan Form 2 – Engineers Ltd RERA A/C For XYZ Certificate Project Approved Building Plan/Plotting plan Form 2A – Engineers Branch Name Quality Assurance IFSC Code NOC from Airport, Fire Certificate Opinion, Environment Account Number Authority as applicable Form 3 – CA Certificate B.U. Permission Means of Finance 4  L J UNIVERSITY Certificates by Various Professionals Form 2A – Engineers Form 3 – Chartered Form 1 – Architects Form 2 – Engineers Certificate for Accountants Certificate Certificate Quality Assurance Certificate Form 4A – Form 5 – Chartered Form 4 – Architects Architects Certificate Accountants Certificate at for Plotted Certificate – RERA Completion Development Audit 5  L J UNIVERSITY Cost Components of Project Total Project Cost Land Cost Development Cost Other Costs Cost of Admin and FSI and Finance Marketing Contingenc Land Labour Material P&M Overheads Taxation TDR Cost Costs ies Acquisition Costs 6  L J UNIVERSITY Why is Documentation Important? 7  L J UNIVERSITY Standard Documentation flow 8  L J UNIVERSITY Prior to Acceptance of Booking Dos and Do Nots: 1. Brochure should be accurate. All Amenities in brochure should be provided 2. Be Aware of Date of Possession and Handing Over provided in RERA 3. Do Not Over-commit 4. Broker/Agent must be registered with RERA 9  L J UNIVERSITY Prior to Issuance of Allotment Letter Dos and Do Nots: 1. Ownership/Joint Ownership should be fixed 2. Unit Consideration should be fixed 3. Amount Collected/Cheque should be less than 10% of Unit Consideration 10  L J UNIVERSITY Rights of Allottee Section 11 (3) 1. The promoter at the time of the booking and issue of allotment letter shall be responsible to make available to the allottee, the following information, namely:— a) sanctioned plans, layout plans, along with specifications, approved by the competent authority, by display at the site or such other place as may be specified by the regulations made by the Authority; b) the stage wise time schedule of completion of the project, including the provisions for civic infrastructure like water, sanitation and electricity. 11  L J UNIVERSITY Registration of Agreement To Sale Section 13 (1) A promoter shall not accept a sum more than ten per cent of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale, under any law for the time being in force. 12  L J UNIVERSITY Registration of Sale Deed Section 17 (1) The promoter shall execute a registered conveyance deed in favour of the allottee and hand over the physical possession of the apartment, and the other title documents pertaining thereto within three months from date of issue of occupancy certificate. 13 L J UNIVERSITY Legal Documentation 14 L J UNIVERSITY Legal Documentation 15 L J UNIVERSITY Marketing RERA Registration number 16  L J UNIVERSITY RERA Registration number 2.0 17  L J UNIVERSITY Advertisement Under RERA Abridged RERA Number Full RERA Number 1. Small Size Hoardings 1. Newspaper Advertisements 2. Audio Video Media 2. Brochure and Leaflets Radio 3. Large Size Outdoor Billboards or Hoardings TV 4. Websites and Project Webpages Video Clips/Audio Clips Digital Media www.gujrera.gujarat.gov.in should be mentioned in each advertisement irrespective of anything. Font Size of RERA Registration number and website address should be mandatorily equal to or larger than the contact details of proposed project. Agents: Real Estate Agents/Brokers should be registered with RERA. Reference: Circular 13 and 18 18 L J UNIVERSITY Commitments to customer 19  L J UNIVERSITY Litigation- Penalties (Section 59 to 70) 20