Provisions under RERA for advertisements of Real Estate

Latest provisions for Advertisement of real estate projects & Penalty circular issued by AP Real Estate Regulatory Authority

NO FALSE FACTS TO BE ADVERTISED

• After registration of the Project, the promoter can advertise his/her project via any sort of media like brochures, pamphlets, etc. Advertisements published for inviting buyers for the purchase of apartment/plot, shall be truthful and based on the facts as have been revealed to the authority and strictly no exaggeration or misinterpretation which may create a biased impression in the minds of the buyers about the property they are interested to buy.

• As per the section 12 of the Act, if any person affected by such incorrect or false statement, intends to withdraw from the proposed project, he shall be returned the investment with interest.

REGISTERED NUMBER TO BE DISPLAYED

• Under section 11(1)(a) and (2) of the Act It is compulsory for the promoter to mention the registration number of the project provided by the authority on the website as well as on any advertisement.

• The promoter must display the 'RERA REGISTERED' details in all their advertisements. By failing to do so they are liable for further penalties under the Act.

COPY OF THE BROCHURE TO BE SUBMITTED TO THE AUTHORITY

• Under section 11(2) of the Act a copy of the prospectus or brochure or any pamphlet vide which information relating to the project is sought to be conveyed to the allottees of the apartment or prospective buyers of the apartment/plots shall be submitted to the authority as soon before print/circulate.

GUIDELINES FOR DISPLAY OF "RERA REGISTERED" STAMP

• The color scheme and the dimensional proportions of the 'RERA Registered' stamp should be preserved as in the softcopies served by APRERA.

• The length and breadth of the 'RERA Registered' stamp must not be less than 10% of the length and breadth (whichever is higher) of advertisement issued.

• The placement of 'RERA Registered' stamp must be on the top half of the advertisement. i.e must not be lower than 50% of the total height from the top edge.

• The registered number should be in Arial Bold font and centre aligned

• The preferred locations of 'RERA Registered' stamp are shown in the figure. APRERA requests promoters to follow a consistent placement in all their advertisement so that it gives a distinct identity to the stamp as well as the project.

• Annexure-I is as under for reference to area preferred for RERA registered stamp.

Penalty circular under AP Real Estate Regulatory Authority

• Circular No.P/2/2017 dt.15-05-2019 issued by AP Real Estate Regulatory Authority for imposing penalty for the projects which are not registered with the authority.

• The Government of India has enacted the Real Estate (Regulation and Development) Act, 2016 (Central Act 16/2016) and in tune with the Act, the State Government have approved the Andhra Pradesh Real Estate (Regulation and Development) Rules, 2017.

• As per the provisions of the Act, the Real Estate Regulatory Authority has been functioning and as per the provisions of section 3 of the Act, all the Real Estate projects from 01-05-2017 including ongoing projects which are in an

1. Extent of more than 500 sq.mts or
2. More than eight units have to be registered with the Authority.

• In the G.O. Government of AP had fixed the rates of fee to be collected for registration of the Real Estate projects and Real Estate Agents.

• As per the provisions under section 59(1) of the Real Estate Regulation and Development) Act-2016, if any Promoter contravenes the provisions of section 3, he shall be liable to a penalty which may extend by ten per cent of the estimated cost of the Real Estate Project as determined by the Authority.

Levy of fees and penalties are as under

• If the promoter not submitted his application for registration after 31-08-2019 or after 135 days, then such promoter shall be liable to pay penalty @ 10% of the estimated cost of the Real estate project.

Therefore, all the real estate projects shall be registered before their due dates to escape from their extra fee.