The Real Estate (Regulation and Development), 2016 act has been implemented by the government to protect the interest of homebuyers and make operations in the real estate sector transparent. For the effective implication of the law, all builders and promoters have been entrusted with various responsibilities under the RERA Act.

But before we delve into the various responsibilities, we need to understand what a builder does.

Who is a builder?

To understand this it is important to know the difference between a promoter, a developer and a builder. The RERA act does not give any specific definition of a "builder" or "developer" per se but it defines a promoter.

According to the Act a "promoter" means a person who constructs an independent building or a building consisting of apartments, or converts an existing building or a part thereof into apartments, for the purpose of selling all or some of the apartments to other persons and includes his assignees.

A person who develops the land into a project, whether or not the person also constructs structures on any of the plots, for the purpose of selling to other persons all or some of the plots in the said project, also comes under "promoter".

For the purposes of this clause, where the person who constructs or converts a building into apartments or develops a plot for sale and the persons who sells apartments or plots are different persons, both of them shall be deemed to be the promoters and shall be jointly liable as such for the functions and responsibilities specified, under this Act or the rules and regulations made thereunder.

For general understanding, in the real estate industry, a developer is the one who takes a plot of land, obtains the necessary permits, creates lots where the building is to be constructed, installs water and electricity lines, streets, etc. After all, this is done, the builder comes in and constructs the building. Following this, the promoter is responsible for marketing and promoting the property for selling.

Responsibilities of a Promoter:

A promoter in the real estate industry has the following functions and duties-

1)The promoter has to get their proposed project registered with the RERA.

2)The promoter as per the act has to set up a website that provides complete details of the project so that even someone who has little understanding of the law can check the legal sanctity of the project.

3) The promoter will not be able to advertise and sell his project until he has received all the necessary approvals from the authorities.

4) The Promoter is required to provide certain documents at the time of booking and issue of allotment letter to the home-buyer (allottee) such as- Sanctioned plans, layout plans, along with specifications, approved by the competent authority.

5) The promoter is also required to mention stage-wise time provisions for civic infrastructure like water, sanitation, and electricity.

6) The promoter has to obtain the completion certificate or the occupancy certificate before handing over the buildings to home-buyer (allottee) or the association of allottees.

7) The promoter is also required to obtain the lease certificate, where the real estate project is developed on leasehold land. The certificate should specify the period of the lease, and that all dues and charges concerning the leasehold land have been paid. The promoter shall then provide the lease certificate to the association of homebuyers (allottee).

8) The promoter will be responsible for providing and maintaining the essential services, on reasonable charges, until the maintenance responsibility is taken over by the association of the homebuyers (allottee).

9) A promoter shall not accept a sum more than 10% 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.

10) If a home buyer (allottee) within five years from the date of handing over possession brings to notice any structural defect or any other defect in workmanship, quality or services provided by the promoter then the promoter is responsible to rectify it free of cost within 30 days.

11) If the promoter fails to complete or is unable to give possession of an apartment, plot or building by the date specified due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason, he shall be liable to compensate and refund the homebuyer, in case he wishes to withdraw from the project.

12) If the homebuyer (allottee) does not want to withdraw from the project despite the delay in possession of the apartment, the promoter will still be liable to pay interest to the homebuyer (allottee) for every month of delay till the house is handed over to the buyer.