The Real Estate (Regulation and Development) Act (hereafter referred to as “RERA”) came into force on 1 May 2016. The main idea behind this law was the regulation and promotion of the real estate sector. Now development projects in real estate need to register themselves under RERA. RERA provides credibility to real estate projects and protects customers against delays in handing over the projects. 

How to Register Projects under RERA?

The process of Application for Registration of Real Estate projects differs from state to state. The detailed procedure for each state is available on each state’s RERA website. The promoters and real estate agents have to apply for registration on the website, which is relevant for their state. For registration, you need to submit certain documents along with the application. These, too, differ from state to state. However, certain documents are common amongst most of the states. These are:

• Promoter’s PAN Card;

• Legal title deeds of the land. (See Section 4(2)(l)A);

• Encumbrance Certificate (See Section 4(2)(l)B);

• Commencement Certificate (See Section 4(2)(c));

• The Sanction Plan, Layout Plan, location details of the project (See Section 4(2)(d));

• The plan of development works; and

• Details of previous project experience of the promoter, if any (See Section 4(2)(b)).

Some of these documents across different states (as mentioned on their websites) are as follows:

• Name, type, and registered address of the enterprise;

• Registration Certificate, Memorandum of Association (MoA), Articles of Association (AoA) and date of incorporation of the promoter’s enterprise;

• Audited balance sheets of the last three financial years;

• Audited report and director’s report of the last three years; and

• Name, address, contact details, and photographs of the promoter/director/partners/chairman/ or any other authorized person.

What Are the Key Benefits?

Before RERA, the real estate industry was in shambles. Customers faced delays, there was no regulation, and there was widespread corruption and high-handedness of real estate agents and builders. We see the following key benefits after RERA came into the picture: 

• Carpet Area: A statutory definition of carpet area dispels the doubts regarding its determination. Promoters decided on carpet areas before RERA came into being. 

• Buyers can seek information regarding the projects (Section 19, Clauses 1 & 2): Buyers under RERA can seek information such as completion status, plan layout, stages of construction, etc.

• Delaying projects led to consequences for the promoter: Under RERA, each promoter has to give a due date on which they will hand over the possession of the property to the buyer. If the promoter cannot complete the project by this date,he can face penal consequences. 

• Liability of promoters:  If there is any structural defect or flaw in constructing a property, the allottee may bring up such an issue to the notice of the promoter and the promoter will be obligated to rectify such flaws within 30 days. If the promoter does not do the same, the allottee will need to be compensated for such structural defects.

• Advance Payments up to 10%: Under RERA, the builders cannot demand advance payments that are more than 10% of the project's total value.

• The buyers were given rights in case of false promises: If the allottee finds themselves in a position where the initial promises made by the promoter are not being kept, or there is a mismatch in the commitment between the parties, the allottee under this Act, has the right to withdraw from the project and get a full refund (sometimes with interest or compensation).

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Impact On Home Buyers

Homebuyers now have the following rights under RERA: 

• Buyers need not pay for the walls area, as the definition of carpet area is now clear. 

• Builders need to disclose information, establishing transparency between the buyers and builders.

• Registration manifests the credibility of builders and real estate agents. 

• RERA also prevents indefinite delays in project development and misappropriation of funds. 

• Asking for refunds in case of uncompleted projects is also easier under RERA. 

Impact On Real Estate Agents

RERA has the following impact on real estate agents:

• Real estate agents now have to mandatorily register themselves and also keep renewing this registration. 

• If a real estate agent is not registered, he will have to pay penalties. 

• Real estate agents will have to maintain accounts, books, records, etc. 

• They should display their registration number at all times, especially in the advertisements they place. 

• False advertisements will attract a penalty. 

Penalties

Various penalties under RERA are:

• Section 60: We already know that a promoter has to register themselves under Section 4 of RERA. For furnishing false information, a penalty of up to 5% of the approximate cost of the real-estate project needs to be paid.

• Section 61: Just like in the previous section, even if the promoter violates any other provision of RERA (i.e., other than Sections 3 & 4), the same amount of penalty can be levied against them.

• Section 63:  For non-compliance with RERA authority order, a penalty upto 5% per day gets levied on the promoter. 

• Section 64: For failure to comply with the order of the RERA tribunal, a promoter may also face imprisonment. 

• Section 62: If the real-estate agent violates the provisions of Section 9 & 10, they will be required to pay ₹ 10,000 per day till such default continues.

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RERA Laws Across India

Till now, every state has notified the rules for their respective state authority under RERA. The only exception here is the state of Nagaland, which is under process to notify the rules.

Most states have launched their websites regarding the same. However, in this regard, some north-eastern states (such as Assam, Manipur, Arunachal Pradesh, and Sikkim) and Jammu & Kashmir, Ladakh, and NCT of Delhi are lagging.

West Bengal refused to implement RERA and enacted its legislation called, “Housing and Industrial Regulation Act, 2017,” challenged in the Supreme Court.

Several states have implemented a diluted form of RERA. This has increased difficulties for homebuyers in these states.

RERA is forward-looking legislation, and before buying a house, you should always check the RERA registration of the builder and the real estate agent. If you are in the real estate business, make sure to comply with the provisions of RERA.

Consulting a Lawyer is always useful for quick and authentic information about RERA Act

Consulting a Lawyer is always useful for quick and authentic information about RERA Act.

Super Built-Up Area

Before we understand super built-up area, it is important to understand the meaning of built-up area. Built up area includes all areas of your flat (carpet area + balconies, walls etc.). Super built-up area includes built-up area plus your proportional share in the common areas of your building. For instance, if your building has common pathways, parks etc., these would also be included in the term super built-up area, in proportion to your share in them.

Typical common areas included in a super built-up area are: 

• Staircases

• Lobbies

• Lifts

• Club house

• Security rooms

However, the super built-up area, does not include the following: 

• Underground water facilities. 

• Open swimming pools and skywalks

• Open sports amenities. 

Occupancy Certificate

An occupancy certificate is the evidence that the building is inhabitable and that its construction is in compliance with all rules and regulations. It is issued by a local government, agency or planning authority. It is the developer of the building who needs to obtain the occupancy certificate. Occupancy certificate needs to be shown at the time of obtaining public utility connections. Typically, a developer applies for an occupancy certificate within 30 days of the completion of the project. The developer or the person applying for an occupation certificate should furnish the following documents: 

• Project commencement certificate

• Project completion certificate

• NOCs for fire and pollution

• Sanctioned plan of the building. 

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RERA Registration Number

RERA mandates that all real estate developers register under it. RERA registration acts as a stamp of credibility. Once the process of RERA registration is complete, the real-estate developers obtain a RERA registration number. This RERA registration number acts as a proof of authenticity that the project is credible and that buyers can put their money in it. 

Floor Space Index

Floor space index, also known as Floor area ratio, is the ratio of the built up area to the total land of the project. Floor space index is important as it indicates the total area that can be built upon a plot of land. The development control regulation department and the building code of India regulate the floor space index. The type of building, which city it is located in and the amenities available in the building are factors taken into account while determining the floor space index. Floor space index helps in maintaining the ratio of open space to closed spaces and helps in sustainable development of cities. 

Leasehold Property

A property which has been taken on lease is a leasehold property. Builders and real-estate developers, build their projects either on leasehold properties or freehold properties. Leasehold properties are typically on lease from 30 to 99 years. Once, the leasehold period gets over, they convert to freehold properties. Buyers prefer freehold properties to leasehold properties, as certain restrictions operate on leased land. 

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Freehold Property

A freehold property absolutely belongs to the owner. The developer may purchase the same form the owner for the purposes of development of the project. Unlike leasehold properties, no statutory approval is required to transfer the ownership of a freehold property. It is easier to get loans for freehold properties and no restrictions are imposed on the same. 

Pre-Launch Properties

You would have heard about pre-launch properties or pre-launch offers. A pre-launch property is a property whose launch has been announced, even before the approval process is underway. Typically, builders solicit offers from customers, who could be old customers or through real-estate agents a discounted prices for pre-launch offers. Such offers and properties attract potential buyers’ attention as they are available at prices lower than the market value. 

These are a few terms or legal jargons which are widely used in the real-estate sector. RERA Act, also uses these terms in its provisions. It is hence, important that you as a customer should know what these jargons mean and make an informed decision, while buying any property. 

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3. When is a Possession Certificate Issued?

A Possession Certificate can be issued, either by a private person or the government: 

1. When the property is transferred, the deed of transfer may require the transferor to deliver the possession of the property in question to the transferee in a specified manner. This delivery of possession is evidenced by a Possession Certificate issued by the transferor to the transferee. 
2. A Possession Certificate issued by the government is an authentic document that will substantiate your claim that you have possession of a particular property. Such a certificate is helpful to prove the possession of your property in a variety of cases.  

Those who read this Article also Consulted a Lawyer about Possession Certificate of their property.  

4. Online Issue of Possession Certificates by the Government

A Possession Certificate for a property can be issued by, the Revenue Department of the Government of the state in which that property is located. You have to file an application to obtain a possession certificate online, accompanied by the prescribed fees, and supported by the required documents.  In most states, you can make such an application through the e-District Portal of that state. 

5. Documents Required for Issue of Possession Certificates by the Government

To apply for a Possession Certificate, you will need the following documents. 

You need to obtain the following documents from the builder before taking possession of the land: 

1. An extract of the land record, or a property deed, which proves the title of the builder over the land in question. 
2. Sale Agreement, which is the document of sale executed by you and the builder. This should contain, the terms of the sale, and a promise to deliver possession of the land once construction is completed. 

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You need to obtain the following documents from the builder after taking possession of the land: 

1. Conveyance Deed, the document by which the builder has transferred their rights over the land in question to you. 
2. Possession Letter, the document by which the builder has formally handed over possession of the land to you. 

You also need to attach copies of the following: 

1. Your identity (name and address) proofs.
2. Proof of payment of the required fees.

Hence, if you own a piece of land or possess the same, it is important that you apply for a possession certificate. Remember that law gives more importance to actual possession than to ownership.

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Conclusion:

In conclusion, a Possession Certificate is a crucial document that serves as evidence of ownership and possession of a property. It is issued by the government authorities and is necessary for carrying out various legal and financial transactions related to the property. Obtaining a Possession Certificate is a relatively straightforward process, and property owners should ensure that they have this document in their possession to avoid any legal disputes or complications in the future. By understanding what a Possession Certificate is and its significance, property owners can take proactive measures to safeguard their property rights and ensure a smooth and hassle-free property transaction process. 

There is no uniform inheritance property law in India. The law of Inheritance varies based on one's religion. Thus, Hindus, Muslims, Christians, Parsis, etc., are governed by their own separate inheritance laws. 

The religion of the deceased determines the law of inheritance that will govern the succession of their estate. Hence, when a Hindu dies, then the Hindu law of inheritance and succession applies to his estate.

Inheritance Property Law in India

 Succession under Hindu law is found in two laws: the Hindu Succession Act, 1956, and the Indian Succession Act, 1925. These laws govern who the estate of a Hindu deceased will pass to on their death. 

When Can a Widow Inherit Her Father-in-Law's Property?

(Those who read this Article also Consulted a Lawyer about Property inheritance law.) 

Inheritance/succession is of two types:

1. Testamentary Succession: When the deceased leaves behind a will, the instructions in the will alone govern the deceased's property's succession. Such succession is called testamentary succession. The Indian Succession Act, 1925, governs testamentary succession.

2. Intestate Succession: In other cases, the deceased does not leave behind a Will. In such cases, the law decides which persons the estate of the deceased will succeed to. When succession takes place in this manner, it is known as intestate succession. The Hindu Succession Act, 1956 governs intestate succession.

Depending on the circumstances, a widow can inherit her father-in-law's property through both these modes. 

By Testamentary Succession 

It is possible for anyone who is of legal age and of sound mind to draught and carry out a will. A testator is a person who is responsible for carrying out the terms of a will. When someone writes a will, they indicate in it who will inherit their assets once they pass away. This is the definition of a will. The individuals who benefit from the will are referred to as the legatees of the will. A testator has nearly unrestricted discretion to choose the legatees of their will (who do not need to be members of their family or relations) as well as the manner in which their fortune will be distributed among the legatees.

Thus, if the deceased father-in-law has left behind a Will, and that Will specifies that a widow will be a legatee of a specified share of his estate, the widow will be entitled to inherit that share of the father-in-law's estate. 

On the contrary, there is also a corresponding risk. If the deceased father-in-law has left behind a Will, but the Will has not allotted a share of his estate to the widow, then the widow cannot claim any share of the deceased's estate. 

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By Intestate Succession

If the deceased Hindu has not left behind a Will, the succession of their estate will be governed by the rules contained in the Hindu Succession Act, 1956. 

Under Hindu Law, the property is of two types: Joint Family property and Self-Acquired property. 

1. Joint Family Property: All property inherited from one's ancestors is considered Joint Family Property. 

2. Self-Acquired Property: All other properties are considered the Self-Acquired Property of the respective person. The clearest indication of Self-Acquired Property is that its has been acquired with the money of one's own efforts. 

The widow will be entitled to inherit a share of the Self-Acquired Property owned by the father-in-law. His Class I heirs will be the ones to inherit the Self-Acquired Property that the decedent's father-in-law had acquired over his lifetime. The Hindu Succession Act, which was passed in 1956, has a schedule in which the list of Class I heirs is included. A Class I heir is the widow of the deceased person's son who passed away before the deceased person did. Other important members of Class I include the decedent's wife, as well as his mother, kids, and daughters. As a result, there is no question that the widow will be entitled to a portion of the father-in-Self-Acquired law's Property. Nonetheless, the amount of her inheritance from her father-in-Self-Acquired law's Property is going to be proportional to the number of Class I heirs who are still alive.

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The share will be determined by this process: 

1. The deceased's widow, sons, daughters, and mother take equal shares of the property. 

2. If any son, or daughter, of the deceased, has died before him, then the share of that son/daughter will be divided amongst their widow, sons, and daughters. In the case of a son, his sons and daughters will take one share, and his widow will take the second share, of that son's share. 

Thus, the widow of the father-in-law will take her share in Step 2. The extent of her share will depend on how many of the father-in-law's sons and daughters and mothers, and the widow's own sons and daughters, are alive. 

Illustration— The deceased X (the father-in-law) has been survived by his only daughter D, mother M, and the widow W of a son who died before him. This widow W has a single daughter WD of her own. 

1. The Self-Acquired Property of the deceased will be divided equally amongst his mother M, dead son, and daughter D. Thus, D, M, and the dead son each get 1/3 of the property. 

2. The 1/3 share of the dead son will then be divided equally amongst his widow W and the daughter WD of the widow. Thus, the widow W and her daughter WD both get 1/6 of the deceased's property each. 

Hence, the widow is entitled to inherit 1/6 of the self-acquired property of the father-in-law. 

Indian inheritance law gives more rights to a daughter than a daughter-in-law in father-in-law's property. The widow would be entitled to her deceased husband's share in an intestate succession. 

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Conclusion: 

In conclusion, the laws governing inheritance can be complicated and can vary a great deal depending on the jurisdiction as well as the particulars of each individual case. Although it is not unheard of for widows to inherit their father-in-property, law's the legal framework that governs inheritance must be thoroughly understood and obeyed in order to eliminate the possibility of difficulties and disagreements arising from the situation. It is necessary for everyone who is interested in inheriting property to speak with a competent legal professional to ensure that their rights are safeguarded and that they completely grasp the obligations that come with inheriting property under the law. Open communication and a thorough estate plan that elucidates both the wishes of the person who has passed away and the rights of the inheritors are, in the end, the best ways to ensure that the process of inheriting something goes off without a hitch and run smoothly.

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Procedure for Obtaining Encumbrance Certificate in BBMP Areas

Karnataka has an easy process for obtaining the Encumbrance Certificate (EC) of lands situated in the state. This includes BBMP areas. You can use the Kaveri Online Services Portal to apply for and get an EC for a particular land. 

The process is as follows: 

1. Register for Kaveri Online Services as a new user. 

2. Log in with your username and password. 

3. Under the “Services” pane, click on the entry “Online EC.”

4. You then need to identify the land for which you want an EC. You can search for the property in either of 2 ways: either by the number of the property or the name of the parties to a transaction of that property. Use whichever mode is convenient for you. You can attempt up to 20 searches a day until you locate the land in question. 

5. Once you have identified the land in question, proceed further. Enter the OTP, which will be sent to your registered mobile number. You will then be able to view a draft EC. 

6. Pay the required fees online, and apply for a digitally signed copy of the EC. 

Get Encumbrance Certificate (EC) Online

Again use the  Kaveri Online Services Portal to download your Encumbrance Certificate (EC) online. The procedure is as follows: 

1. Login to Kaveri Online Services using your username and password. 

2. Use the “Pending/Saved Applications” pane to check for the status of your application. Search for Online EC Applications using the interface. The status of your application will be displayed against it. 

3. Once the application is approved, click on the “View Application” button, and download the digitally signed EC. 

The EC will specify the encumbrances on the land in question. If there are no encumbrances, you will get a nil Encumbrance Certificate, which will state that there are no encumbrances on that land. 

The EC will be digitally signed by the local Sub-Registrar of Assurances who issued the EC. A digital signature is as good as a physical signature. Hence, the digital signature on the EC will lead to encumbrance certificate verification. 

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Documents Required for Encumbrance Certificate (EC)

1. Any document containing the full address of the land: including the district, sub-district, and village, in which it is located. This will typically be found in an electricity bill, water bill, gas connection bill, a rent agreement, etc. 

2. A copy of any previous deed by which some transaction in respect of that property was carried out. The name of the parties and the transaction date will be helpful in identifying the property. 

3. Any document, such as an extract of the land record or a previous deed, which records the boundaries, type, and size of the property. This too will be necessary to identify the property.