In the realm of real estate and property development, a "promoter" plays a pivotal role in bringing projects to fruition. A promoter can be an individual or a legal entity responsible for initiating and overseeing real estate projects, from conception to completion. They are integral to the real estate landscape and significantly influence project outcomes. The Delhi Real Estate Regulatory Authority (Delhi RERA) has defined a comprehensive framework that outlines the functions and duties of a promoter in the real estate industry. This article delves into the intricate details of these obligations as stipulated in Chapter III of Delhi RERA, emphasizing their crucial role in creating a fair and transparent real estate environment.

Creation of a Web Page:

Upon receiving their login credentials from Delhi RERA, a promoter is required to establish a web page on the regulatory authority's official website. This web page serves as a central repository for all project-related information. Promoters are obliged to enter comprehensive project details, such as registration status, the quarterly list of booked apartments or plots, approvals, project status, and additional information specified by Delhi RERA. Importantly, this information is accessible to the public, enhancing transparency in the sector.

Creating a web page on the Delhi RERA website is a critical step in ensuring transparency and accountability in the real estate sector. This platform allows both regulators and homebuyers to access essential project-related information, promoting confidence and informed decision-making.

Promoters play a pivotal role in this process. They are responsible for populating the web page with accurate and up-to-date information. The following are some of the key details that must be entered by the promoter:

• Registration Status: Promoters must provide details of their project's registration, including the registration number granted by Delhi RERA. This information is vital for homebuyers as it establishes the legitimacy and regulatory approval of the project.
• Quarterly List of Booked Apartments or Plots: The web page should include a quarterly up-to-date list of the number and types of apartments or plots booked. This transparency allows prospective buyers to gauge the demand for different types of properties within the project.
• Approvals and Pending Approvals: Promoters must maintain a quarterly up-to-date list of approvals obtained and approvals pending subsequent to the issuance of the commencement certificate. This ensures that homebuyers are aware of the project's regulatory status and potential bottlenecks.
• Project Status: Quarterly updates on the project's status provide insights into the construction progress, potential delays, and other relevant information. This information allows homebuyers to set realistic expectations regarding project completion.
• Additional Information: Delhi RERA may specify additional information and documents that promoters must include on the web page. These requirements are designed to provide a comprehensive view of the project and facilitate informed decision-making.

Advertisement and Prospectus:

Delhi RERA underscores the importance of transparency by mandating that promoters include the website address of Delhi RERA prominently in all project-related advertisements and prospectuses. This ensures that prospective buyers have easy access to comprehensive project details on the regulatory authority's website, including registration numbers and other essential information.

Promoters must prominently feature the website address of Delhi RERA in all project-related advertisements and prospectuses. This requirement serves to bridge the gap between promotional materials and the detailed project information available on the Delhi RERA website. It offers the following benefits to prospective buyers:

• Cross-Verification: Prospective buyers can cross-verify the information presented in advertisements and prospectuses with the comprehensive data available on Delhi RERA's web page. This cross-verification ensures that the details provided in promotional materials are accurate and consistent with the official records.
• Informed Decision-Making: The inclusion of the website address empowers prospective buyers to access a wealth of information about the project. They can review registration status, project approvals, quarterly booking data, and more. This transparency facilitates informed decision-making, as homebuyers have a complete view of the project.
• Trust and Credibility: Prominently featuring the Delhi RERA website address in advertisements and prospectuses enhances the credibility of the project and the promoter. It demonstrates a commitment to transparency and adherence to regulatory standards.
• Protection from Misrepresentation: Should there be any inconsistencies or misrepresentations in project-related materials, homebuyers have a clear avenue for recourse through Delhi RERA. The regulatory authority provides mechanisms for addressing issues of misrepresentation or false claims, safeguarding the interests of prospective buyers.

Information to Allottees:

The promoter's duty to provide critical information to allottees is a fundamental aspect of ensuring transparency and accountability in real estate transactions. At the time of booking and during the issuance of allotment letters, the following information must be made available to allottees:

• Sanctioned Plans: Allottees are entitled to access and review the sanctioned plans and layout plans approved by the competent authority. These plans provide a clear picture of the project's design and layout, helping allottees understand the configuration and specifications of their properties.
• Time Schedules for Project Completion: Promoters must share the stage-wise time schedule for project completion with allottees. This schedule outlines the estimated timeline for the project's different phases, enabling allottees to plan their occupancy and related arrangements accordingly.
• Provisions for Essential Civic Infrastructure: Information regarding provisions for essential civic infrastructure like water supply, sanitation, and electricity should be made available to allottees. This ensures that allottees are aware of the infrastructure they can expect, contributing to a more transparent and informed decision-making process.

Responsibilities to Allottees:

Promoters bear a range of responsibilities toward allottees to safeguard their interests and ensure a smooth transition from booking to possession. These responsibilities include:

• Conveyance of Apartments, Plots, or Buildings: Promoters must execute a registered conveyance deed in favor of the allottee, along with the undivided proportionate title in the common areas. This step is crucial for transferring legal ownership and possession of the property to the allottee.
• Obtaining Completion and Occupancy Certificates: It is the promoter's responsibility to obtain the completion certificate or the occupancy certificate, as applicable, from the relevant competent authority in accordance with local laws. These certificates attest to the project's compliance with legal and safety requirements. The promoter must then make these certificates available to the allottees.
• Providing Essential Services: Until the maintenance of the project is transferred to the association of allottees, the promoter is responsible for providing and maintaining essential services. This includes services like water supply, sanitation, electricity, and any other amenities mentioned in the agreement for sale. Allottees are entitled to receive these services at reasonable charges.
• Formation of Associations: Promoters must facilitate the formation of an association, society, or cooperative society of the allottees, as per the applicable laws. This association serves as a collective entity to manage common areas, resolve issues, and promote the welfare of allottees. In the absence of local laws, the association of allottees must be formed within three months of the majority of allottees booking their properties in the project.
• Execution of Registered Conveyance Deeds: Promoters are required to execute registered conveyance deeds of the apartments, plots, or buildings in favor of the allottees, along with the undivided proportionate title in the common areas. This process is governed by Section 17 of Delhi RERA and is essential for legally transferring property rights.

Financial Responsibilities:

Promoters play a significant role in managing the financial aspects of the project, ensuring that all financial matters are handled diligently and transparently. Their financial responsibilities include:

• Payment of All Outgoings: Promoters are responsible for paying all outgoings collected from allottees. This includes land costs, ground rent, municipal or other local taxes, charges for water or electricity, maintenance charges, mortgage loans, interest on mortgages, and any other liabilities payable to competent authorities, banks, and financial institutions related to the project.
• Liability for Pending Financial Obligations: Even after transferring physical possession of the project to allottees or the association of allottees, promoters remain liable for any pending financial obligations or penalties related to the project. This ensures that financial matters are resolved satisfactorily, and allottees are not burdened with unresolved financial issues.

Mortgage Restrictions:

One of the key provisions under Delhi RERA is the strict restriction imposed on promoters regarding mortgages or charges on apartments, plots, or buildings once an agreement for sale has been executed. This restriction serves to safeguard the interests of allottees and ensures that their rights and interests remain intact throughout the transaction process.

The provision effectively means that once an agreement for sale is in place, promoters are prohibited from using the property as collateral for loans, mortgages, or any other financial arrangements without the consent of the allottee. This restriction is particularly crucial in maintaining the integrity of the transaction and protecting the allottee's investment. By preventing the promoter from encumbering the property, this provision offers allottees peace of mind, knowing that their property will not be subject to any financial dealings initiated by the promoter.

Cancellation of Allotment:

While promoters have the authority to cancel allotments as per the terms specified in the agreement for sale, Delhi RERA ensures that this process is carried out in strict adherence to the agreement's terms. The agreement for sale is a legally binding document that outlines the conditions under which an allotment can be canceled. It typically specifies the circumstances, timelines, and procedures for cancellation.

However, Delhi RERA adds an important layer of protection for allottees. If an allottee believes that the cancellation of their allotment is unilateral and not in accordance with the terms stipulated in the agreement, they have the right to seek relief from Delhi RERA. This provision is a safety net that ensures that allottees are not unjustly deprived of their property rights. It provides a legal recourse for allottees who feel that the promoter's actions are in violation of the agreed-upon terms.

Maintenance of Records:

Delhi RERA emphasizes the importance of record-keeping and mandates that promoters maintain all necessary records as specified by the regulatory authority's regulations. This requirement is a vital component in enhancing transparency and accountability in the real estate sector.

By maintaining comprehensive records, promoters are able to provide a clear and auditable trail of all transactions, communications, and agreements related to the project. This not only benefits the regulatory authority but also serves the interests of the allottees. Allottees can have confidence that there is a documented history of their transactions and agreements, providing a layer of legal protection.

Moreover, maintaining records ensures that all parties involved in the real estate transaction can access and reference key information, which is crucial for dispute resolution, compliance verification, and overall transparency.

Compensation for Misrepresentation:

Delhi RERA places a strong emphasis on honesty and transparency in real estate transactions. To underscore this commitment, the regulatory authority has established provisions for compensation in cases where individuals suffer losses due to incorrect or false statements in project-related notices, advertisements, or prospectuses. This is a crucial safeguard that ensures that the rights and interests of homebuyers are protected.

In situations where an individual incurs financial losses as a result of relying on incorrect or false information provided in project-related communications, the onus falls on the promoter to compensate the affected party. The compensation process is governed by the provisions of Delhi RERA, and it is a mechanism for holding promoters accountable for any misrepresentation or false statements they may have made. This provision acts as a deterrent against misleading advertising and promotes trust and integrity in the real estate sector.

Advance Payments and Written Agreements:

Delhi RERA has implemented stringent regulations to provide legal protection to allottees. One of these regulations pertains to the acceptance of advance payments by promoters. Promoters are not permitted to accept more than ten percent of the total cost of an apartment, plot, or building as an advance payment without first entering into a formal, written agreement for sale. This agreement must be registered in accordance with the applicable laws and must adhere to the specific format prescribed by the regulatory authority.

The requirement for a written agreement for sale serves to safeguard the interests of allottees. It ensures that the terms and conditions of the sale are clearly defined, offering transparency and legal protection. This written agreement also provides a legal recourse for allottees in case of disputes or non-compliance with the agreed-upon terms. It is a critical step in ensuring that real estate transactions are conducted with integrity and in a manner that protects the rights of homebuyers.

Adherence to Sanctioned Plans:

Delhi RERA places a significant emphasis on adherence to sanctioned plans, layouts, and specifications approved by competent authorities. This requirement is essential in maintaining the integrity of the project and ensuring that it complies with legal and safety standards. It provides several key provisions:

• Prior Consent for Alterations or Additions: Promoters are strictly prohibited from making any alterations or additions to the sanctioned plans, layouts, or specifications without the prior written consent of at least two-thirds of the allottees who have agreed to purchase properties in the project. This ensures that any changes to the project are made with the consent of the majority of homebuyers.
• Rectification of Structural Defects: If any structural defects or defects in workmanship, quality, or the provision of services come to the attention of allottees within five years from the date of possession, it becomes the duty of the promoter to rectify these defects at no additional cost within thirty days. This provision safeguards the quality of the delivered project and addresses issues promptly.

Transfer of Rights and Liabilities:

Delhi RERA takes measures to safeguard the interests of allottees by imposing strict restrictions on promoters regarding the transfer or assignment of their majority rights and liabilities to a third party. This provision ensures that such transfers can only be carried out with the prior written consent of two-thirds of the allottees and the prior approval of Delhi RERA. The importance of this provision lies in its role in protecting the interests and rights of allottees throughout the project's lifecycle.

By requiring the consent of two-thirds of the allottees, Delhi RERA ensures that any transfer or assignment is not undertaken unilaterally by the promoter but is subject to the agreement of the majority. This democratic approach safeguards the interests of the homebuyers, preventing situations where transfers may be detrimental to their rights or the successful completion of the project. Additionally, the requirement for prior approval from Delhi RERA adds an extra layer of protection and oversight to ensure that any transfers are in compliance with the regulatory framework.

Insurance Obligations:

In recognition of the potential risks and uncertainties associated with real estate projects, Delhi RERA has established mandatory insurance requirements for promoters. These insurance policies include title insurance for land and construction insurance for the project. The introduction of these insurance requirements serves as a significant financial safeguard for both the project and the allottees.

Title insurance for land is a critical provision that protects against potential disputes or claims regarding the property's title. It offers allottees the assurance that their investment is secure, and any title-related issues are covered by the insurance.

Construction insurance for the project acts as a safety net for unforeseen events that may affect the construction process, such as natural disasters or accidents. This insurance ensures that the project can continue without being derailed by unexpected challenges. For allottees, this means greater peace of mind that their homes will be completed as planned.

Conveyance Deed and Possession:

One of the key obligations of promoters under Delhi RERA is the responsibility for executing registered conveyance deeds in favor of allottees. This process involves transferring legal ownership of the plot, apartment, or building to the allottees, along with the undivided proportionate title in the common areas. Importantly, this must be done within a specified timeframe, as determined by the sanctioned plans and local laws.

The requirement for a registered conveyance deed serves to provide legal clarity and security to allottees. It is a crucial step in the property transaction process, as it formally transfers the rights and responsibilities associated with the property from the promoter to the allottee. This legal document protects the rights of the allottee and ensures that they have clear and undisputed ownership of the property.

Furthermore, the time frame for executing the conveyance deed is a practical measure to prevent undue delays in the possession of the property. Allottees can have confidence that their possession will be granted within a reasonable timeframe, as stipulated by the project's plans and local laws.

Delay and Compensation:

Delhi RERA is resolute in ensuring that homebuyers are not unduly inconvenienced or suffer financial losses due to delays or failures by promoters in meeting their commitments. In cases where the promoter fails to complete the project or provide possession as per the terms stipulated in the agreement for sale, they are held liable under the regulatory framework.

This provision ensures that allottees are adequately protected and compensated for any inconveniences or losses they may incur due to project delays. It introduces a system of financial accountability, holding promoters responsible for adhering to the agreed-upon timelines and obligations. The compensation is prescribed by Delhi RERA, offering a clear and regulated process for determining the appropriate restitution to allottees.

Compensation for Defective Title:

Delhi RERA recognizes the significance of safeguarding the interests of allottees and the importance of a clear and unencumbered title to the property. In this regard, the regulatory authority has stipulated that if a promoter fails to discharge any other obligations imposed by the Act or the agreement for sale, they are liable to pay compensation to allottees for any loss incurred due to a defective title of the land on which the project is being developed.

This provision is a critical protection for allottees, as it ensures that their investments are secured against any potential title-related issues that may arise. Importantly, Delhi RERA has gone a step further by specifying that the claim for compensation in such cases is not subject to any limitations imposed by existing laws. This means that allottees can seek compensation without being bound by statutory limitations, further reinforcing their rights and interests.

How Homebuyers in Delhi Will Benefit from the Functions and Duties of a Promoter under Delhi RERA

The framework brings several benefits to homebuyers in Delhi, as it establishes transparency, accountability, and legal safeguards in the real estate market. Let's explore how the functions and duties of a promoter under Delhi RERA are advantageous to homebuyers:

1. Transparency and Information Accessibility:

One of the primary benefits for homebuyers is the increased transparency brought about by Delhi RERA. Promoters are required to create a web page on the Delhi RERA website, where they must enter comprehensive project details. This information, including project registration, approved plans, construction progress, and more, is accessible to the public. Homebuyers can easily access all project-related information, ensuring they have a clear understanding of the project they are interested in.

2. Accurate Project Information:

Delhi RERA mandates that promoters prominently feature the website address of Delhi RERA in their project advertisements and prospectuses. This ensures that the information provided to homebuyers is accurate and can be cross-verified on the regulatory authority's website. Homebuyers can trust the information presented in advertisements, reducing the risk of misleading or false claims.

3. Protection from Misrepresentation:

Delhi RERA includes provisions for compensating individuals who suffer losses due to incorrect or false statements in project-related notices, advertisements, or prospectuses. Homebuyers are protected from misrepresentation and can seek compensation in case they are adversely affected by such practices. This legal safeguard ensures that homebuyers' interests are protected.

4. Financial Security:

Homebuyers benefit from Delhi RERA's restrictions on advance payments. Promoters are not allowed to accept more than ten percent of the cost of a property as an advance payment without first entering into a written agreement for sale. This safeguards homebuyers' financial investments and provides them with a legally binding agreement that outlines the transaction's terms and conditions.

5. Clarity on Project Timelines:

Delhi RERA requires promoters to provide homebuyers with information about sanctioned plans, construction schedules, and provisions for essential civic infrastructure. Homebuyers gain clarity on project timelines and infrastructure provisions, ensuring they have realistic expectations regarding the completion and handover of their properties.

6. No Mortgage or Charge on Properties:

To protect the interests of homebuyers, Delhi RERA mandates that promoters cannot mortgage or create a charge on apartments, plots, or buildings once an agreement for sale is executed. This provision ensures that the properties remain unencumbered and protected from any financial dealings of the promoter.

7. Compensation for Delays:

In the event of project delays, homebuyers are entitled to seek compensation. Delhi RERA establishes a legal mechanism for homebuyers to address delays and obtain due compensation. This ensures that promoters adhere to project timelines and commitments, giving homebuyers financial protection.

8. Structural Defect Rectification:

Homebuyers benefit from Delhi RERA's provision that obligates promoters to rectify structural defects or defects in workmanship within five years of taking possession. This ensures the quality of construction and protects homebuyers from incurring additional costs for post-possession repairs.

9. Right to Withdraw or Stay Invested:

Delhi RERA empowers homebuyers with the right to withdraw from a project if they are dissatisfied with the cancellation of their allotment or other terms and conditions. Homebuyers have the option to seek relief or opt-out if the project no longer meets their expectations.

10. Safe and Transparent Transfers:

If promoters intend to transfer a real estate project to a third party, they must obtain written consent from two-thirds of the allottees. This provision safeguards homebuyers from sudden and unapproved project transfers, ensuring that their rights and interests are protected.

To conclude, the functions and duties of a promoter under Delhi RERA bring significant benefits to homebuyers in Delhi. These provisions create transparency, accountability, and legal safeguards that enhance the overall home-buying experience. With Delhi RERA in place, homebuyers can make more informed decisions, have financial security, and enjoy protection against misrepresentation and project delays, ultimately ensuring a more secure and transparent real estate market in the city.