Since the inception of the Real Estate (Regulation and Development) Act it has been said that every property you buy should be registered under this law. A well known and most commonly heard statement since the Act came into existence on 1^st May 2017, but is this to be taken in black and white or there lies some grey area here?

Grey matters

Although the Act establishes a regulatory framework for the industry, it also enlists certain cases where the law shall not be applicable. Given below are some situations when the RERA Act shall not be binding.

• The area of land proposed to be developed does not exceed five hundred square meters.
• The number of apartments proposed to be developed does not exceed eight inclusive of all phases.
• Promoter has received a completion certificate for a real estate project prior to the commencement of this Act (1^st May 2017).
• For the purpose of renovation or repair or re-development which does not involve marketing, advertising selling or new allotment of any apartment, plot or building, as the case may be, under the real estate project.

Section 3(2)(a) of the Real Estate (Regulation and Development) Act, 2016: Notwithstanding anything contained in sub-section (1), no registration of the real estate project shall be required where the area of the land proposed to be developed does not exceed five hundred square meters or the number of apartments proposed to be developed does not exceed eight inclusive of all phases.

However, it is provided that if the government considers it necessary at a later stage, it may reduce the threshold.

How are we protected then?

The existence of these conditions does not mean that the buyer has no respite. In its landmark judgment in the case of Simmi Sikka versus Emaar MGF, the Gurugram Bench of Harera state (Haryana RERA) not only settled confusion about the applicability of the Act and registration of projects but also attempted to nullify the effect of dilution of the provisions of the Act by Haryana Rera rules.

Projects like those on less than 500 square meters and less than eight units have been taken out of the registration requirement as mentioned in Section 3(2) of the Act. But they are "not out of the purview of other provisions of the Act,'' the judgment noted.

In any such probability that the buyer is not able to find a solution under cover from RERA, disputes in exempted projects will have to be pursued by Consumer Court or Civil Courts for non-commercial, or in only Civil Courts for commercial projects.