Real Estate (Regulation and Development) Act, 2016 - key provisions and definitions
The Act (Act 16 of 2016, in force from 1 May 2016) is a disclosure-and-compliance statute built on three pillars: mandatory registration of projects and agents, ring-fenced project money, and quick dispute resolution. Start with Section 2, because most questions turn on a definition.
Definitions to state precisely: carpet area - net usable floor area of an apartment, excluding the area of external walls, service shafts, exclusive balcony or verandah and exclusive open terrace, measured wall to wall; it is the basis on which saleable area must be disclosed. Common areas, apartment, building, completion certificate and occupancy certificate, sanctioned plans, planning area, estimated cost of the real estate project (development cost plus land cost, the base for computing most penalties), and interest (rate prescribed by the State Rules).
Promoter is deliberately wide: the person who constructs, or causes construction, or develops land into plots, or converts a building into apartments, for sale - and where landowner and developer join hands, the person who markets and sells is answerable. Real estate agent covers property dealers, brokers and middlemen "by whatever name called", so styling yourself channel partner or consultant does not escape registration. Real estate project includes common areas, development works and appurtenances; each phase of a phased project is a standalone project for registration.
Trap: the Section 3 exemption applies only where the land does not exceed 500 sq m or the apartments do not exceed eight - and never where the project involves marketing, advertising and selling. Rule of thumb: carpet area for selling, estimated cost for penalties, occupancy/completion certificate for ending obligations. Worked example: an 800 sq m plot with 60 flats must be registered, because the eight-apartment limit is crossed.