MUNICIPAL ADMINISTRATION AND URBAN DEVELOPMENT (M1 .

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1GOVERNMENT OF TELANGANAABSTRACTRULES - Telangana Real Estate (Regulation and Development) Rules, 2017Notification – Orders – Issued.MUNICIPAL ADMINISTRATION AND URBAN DEVELOPMENT (M1) DEPARTMENTG.O.Ms.No.202,Dated: 31-07-2017Read: -Real Estate (Regulation and Development), Act,2016. ORDER: The appended Notification will be published in Telangana GazetteDated:04-08-2017.(BY ORDER AND IN THE NAME OF THE GOVERNOR OF TELANGANA)SUNIL SHARMAPRINCIPAL SECRETARY TO GOVERNMENT (TR&B) &SECRETARY TO GOVERNMENT (MA&UD) (i/c)ToThe Commissioner and Director, Printing, Stationery and Stores PurchaseTelangana Hyderabad (with a request to publish the same in the Extraordinaryissue of Telangana Gazette dated: 04.08.2017, and furnish 500 copies toGovernment)The Metropolitan Commissioner,Hyderabad Metropolitan Development Authority, Hyderabad.The Commissioner, Greater Hyderabad Municipal Corporation, HyderabadThe Director of Municipal Administration, Telangana, Hyderabad.The Director of Town and Country Planning, Telangana, Hyderabad.The Commissioners of all Municipal Corporations/ Municipalities in the State,through DMA.The Vice chairman of all Urban Development Authorities in the StateThe Commissioner and Inspector General of Registration and Stamps, Hyderabad.All Departments of SecretariatAll Heads of Department.The Director General of Fire Services.The Chairperson, Telangana Transco.The Managing Director, H.M.W.S&S.B, Hyderabad.The Engineer in Chief (Public Health) Hyderabad.The Commissioner & Inspector General of Registration & Stamps.The Managing Director, Telangana Housing Board.The District Collectors of all Districts.Copy to:The Principal Secretary to Chief Minister.The OSD to Minister (MA & UD).The P.S. to Principal Secretary to Government (TR&B Dept)The P.S. to Secretary to Government (MA&UD Dept)S.F/S.C//FORWARDED BY ORDER//SECTION OFFICER

2NOTIFICATIONIn exercise of the powers conferred by section 84 red with sub-clause (iv) ofclause (g) of section 2 of the Real Estate (Regulation and Development) Act, 2016(Central Act 16 of 2016 ), the Government of Telangana, hereby makes thefollowing rules, namely: —CHAPTER - IPRELIMINARY1. Short title, applicability and Commencement —(1) These rules may be called the Telangana State Real Estate (Regulation andDevelopment) Rules, 2017.(2) These Rules are applicable to all Real Estate Projects whose buildingpermissions approved on or after 01.01.2017 by the Competent Authoritiesviz., UDAs / DTCP / Municipal Corporations / Municipalities / NagarPanchayats / TSIIC.(3) They shall come into force from the date of their publication in theTelangana Gazette.2. Definitions.—(1) In these rules, unless the context otherwise requires,(a) “Act” means the Real Estate (Regulation and Development) Act, 2016(Central Act 16 of 2016);(b) “association of allottees” means a collective of the allottees of a realestate project, by whatever name called, registered under any law for thetime being in force, acting as a group to serve the cause of its members,and shall include the authorized representatives of the allottees;(c) “authenticated copy” means a self-attested copy of any document;(d) “Form” means a Form appended to these rules;(e) “appropriate government” means the Government of Telangana;(f) “section” means a section of the Read Estate (Regulations andDevelopment) Act, 2016(g) “Saleable Area” includes Carpet Area plus veranda/balcony/terrace areawhich are exclusively meant for the Allottee plus the proportionate shareof Common Areas and any other area as agreed between the Promoter andAllottee in the agreement of salefor which a proportionate cost has beencollected from the Allottees;(h) Parking area” means a covered or open area which is sufficient in size topark vehicles and which may be provided in the basements and/or stiltand/or podium and/or in the form of independent structure built forproviding parking spaces and/or parking provided by the mechanizedparking arrangements.(i) “Land Cost” and Cost of Construction : For the purposes of sub-clause (D)of clause (l) of sub-section (2) of section 4 of the Act and for thepurposesof registration of a real estate project as set out in Rules 3 and 4 of theseRules:(a)“Land cost” shall include:(i).The costs incurred by the Promoter for acquisition ofownership and title of the land parcels proposed forthe real estate project, including its lease charges,Interest Costs, which shall also include overhead cost,marketing and/or brokerage costs, legal cost andsupervision cost.

3(ii).(iii).(iv).(v).(b)(i).(ii).(iii).Any security deposits, payments payable to landowner(s) in connection with the Joint developmentagreement,Amount paid for acquisition of TransferableDevelopment Rights in accordance with applicablelaws;Consideration payable to the outgoing developer torelinquish ownership and title rights over the landparcel forming part of the real estate project;Amounts payable to State Government or CompetentAuthority or any other Statutory Authority of the Stateor Central Government, towards Stamp Duty, nversion charges, NALA charges, any taxes in relationto the land etc.“Cost of construction” shall include:The cost of construction for the purpose of sub-clause(D) of clause (I) of sub-section (2) of section 4, shallinclude all such costs, incurred by the Promoter,towards the on-site and off-site expenditure for thedevelopment of the Real Estate project such asmobilization advances to contractors, procurementadvances to vendors, construction equipment, sitepreparations and so on and onsite and offsiteconstruction activities, payments/ instalments to localauthority, and all other items of expenditure for theconstruction, marketing and sale of the project;Fees, Charges, Interest etc. and taxes and penalties toany competent authority or statutory or local authorityof the Central or State Government under any laws orrules or regulations for the time being in force; andPrincipal sums and Interest, paid or payable to anyfinancial institutions including scheduled banks or nonbanking financial companies etc. or any lender for theReal Estate Project.(j) “Ongoing Project” means, a Project where development is going on and forwhich Occupancy Certificate or Completion Certificate has not been issuedbut excludes such Projects for which building permissions were approvedprior to 01.01.2017 by the Competent Authorities viz., UDAs / DTCP /Municipal Corporations / Municipalities / Nagar Panchayats / TSIIC as thecase may be.(2) Words and expressions used but not defined in these rules, but definedin the Act, shall have the same meanings respectively assigned to themin the Act.CHAPTER - IIREAL ESTATE PROJECT3. Information and documents to be furnished by promoter for registration ofreal estate project.—(1) A promoter shall furnish the following information and documents alongwith those specified under section 4 of the Act for registration of theproject tothe Competent Authority appointed by the Government bynotification or delegated under section 81 of the Act, namely:-

4a) authenticated copy of the PAN card of the promoter;b) annual report including audited profit and loss account, balance sheet, cashflow statement, Directors report and the Auditors report of the promoterfor the immediately preceding three financial years; and where annualreport is not available, the audited profit and loss account, balance sheet,cash flow statement and the Auditors report of the promoter for theimmediately preceding three financial years;c) the number of open parking areas and the number of covered parking areasavailable in the real estate project;d) authenticated copy of the legal title deed reflecting the title of thepromoter to the land on which development of project is proposed alongwith legally valid documents for chain of title with authentication of suchtitle;e) details of encumbrances on the land on which development of project isproposed including details of any rights, title, interest, dues, litigation andname of party in or over such land or non-encumbrance under certificatefroman advocate having experience of atleast ten years or from the revenueauthority not below the rank of Tahsildar, as the case may be;f) where the promoter is not the owner of the land on which development ofproject is proposed details of the consent of the owner of the land alongwith a copy of the collaboration agreement, development agreement, jointdevelopment agreement or any other agreement, as the case may be,entered into between the promoter and such owner and copies of title andother documents reflecting the title of such owner on the land on whichproject is proposed to be developed;g) name, photograph, contact details and address of the promoter if it is anindividual and the name, photograph, contact details and address of thechairman, partners, directors, as the case may be, and the authorisedperson in case of other entities.(2) An application to the Authority for registration of the real estate projectshall be made in writing in Form ‘A’, annexed to this order,in triplicate,until the procedure is made web based for filing of such application.(3) The promoter shall pay a registration fee at the time of application forregistration either by way of a demand draft or a bankers cheque drawn onany scheduled bank or through online payment mode, as the case may be,for a sum calculated at the rate of,(a) in case of group housing project,- five rupees per square meter forprojects where the area of land proposed to be developed does notexceed one thousand square meters; or rupees ten per square meter forprojects where the area of land proposed to be developed exceeds onethousand square meters, but shall not be more than five lakhs rupees;(b) in case of mixed development (residential and commercial) project,- tenrupees per square meter for projects where the area of land proposed tobe developed does not exceed one thousand square meters; or fifteenrupees per square meter for projects where the area of land proposed tobe developed exceeds one thousand square meters, but shall not bemore than seven lakhs rupees;(c) in case of commercial projects,- twenty rupees per square meter forprojects where the area of land proposed to be developed does not

5exceed one thousand square meters; or twenty five rupees per squaremeter for projects where the area of land proposed to be developedexceeds one thousand square meters, but shall not be more than tenlakhs rupees;(d) in case of plotted development projects,- five rupees per square meter,but shall not be more than two lakhs rupees.(4) The declaration to be submitted under clause (l) of sub-section (2) ofsection 4 of the Act, shall be in Form ‘B’ annexed to this order, which shallinclude a declaration stating that the promoter shall not discriminateagainst any allottee at the time of allotment of any apartment, plot orbuilding, as the case may be.4. Additional disclosure by promoters of ongoing projects —(1) Upon the notification for commencement of sub-section (1) of section 3 ofthe Act, or the commencement of these regulations whichever is later, thepromoter of an ongoing project who has not received completion certificate(i.e, Occupancy Certificate) shall, within the time specified in the said subsection, make an application to the Authority as provided in rule 3.(2) The promoter shall, in addition to disclosures provided in rule 3, disclosethe following information, namely:(a) the original sanctioned plan, layout plan and specifications and thesubsequent modifications carried out, if any, including the existingsanctioned plan, layout plan and specifications;(b) the total amount of money collected from the allottees and the totalamount of money used for development of the project including the totalamount of balance money lying with the promoter;(c) status of the project (extent of development carried out till date and theextent of development pending) including the original time perioddisclosed to the allottee for completion of the project at the time of saleincluding the delay and the time period within which he undertakes tocomplete the pending project, which shall be commensurate with theextent of development already completed, and this information shall becertified by an engineer, an architect and a chartered accountant inpractice.(3) The promoter shall disclose the size of the apartment based on carpet areaeven if earlier sold on any other basis such as super area, super built uparea, built up area etc. which shall not affect the validity of the agreemententered into between the promoter and the allottee to that extent.(4) In case of plotted development, the promoter shall disclose the area of theplot being sold to the allottees as per the layout plan.(5) For projects that are ongoing and have not received completion certificate(i.e, Occupancy Certificate), on the date of commencement of theseregulations, the promoter shall, within a period of three months make anapplication for registration of the project with the Authority, deposit in theseparate bank account, seventy per cent of the amounts already realizedfrom the allottees, which have not been utilized for construction of theproject or the land cost for the project as required under sub-clause (D) ofclause (l) of sub-section (2) of section 4, which shall be used for thepurposes specified therein.

65. Grant or rejection of registration of project.—(1) Upon the registration of a project as per section 5 of the Act read with rule3 and 4 of these rules, as the case may be, the Authority shall issue aregistration certificate with a registration number as specified in Form ‘C’annexed to this order to the promoter.(2) In case of rejection of the application as per clause (b) of Sub-section (1) ofsection 5 of the Act, the Authority shall intimate the applicant in Form ‘D’annexed to this order to grant an opportunity to the applicant to rectify thedefects in the application within such time period as may be specified by it.6. Extension of registration of project.—(a) The registration granted under the Act, may be extended by the Authority,on an application made by the promoter in Form ‘E’annexed to this order,in triplicate until the application procedure is made web based, withinthree months prior to the expiry of the registration granted.(b) The application for extension of registration shall be accompanied with ademand draft or a bankers cheque drawn on any scheduled bank or throughonline payment mode, as the case may be, for an amount equivalent to halfthe registration fees as prescribed under sub-rule (3) of rule 3 along with anexplanatory note setting out the reasons for delay in the completion of theproject and seeking extension of registration for the project, along withsupporting such reasons:Provided that where the promoter applies for extension of registration ofthe project due to force majeure he shall not be liable to pay any fee.(c) The extension of registration of the project shall not be beyond the periodprovided as per local laws for completion of the project or phase thereof, asthe case may be.(d) In case of extension of registration, the Authority shall issue such extensionin Form ‘F’ annexure to this order and in case of rejection of theapplication for extension of registration the Authority shall issue suchrejection in Form ‘D’ annexed to this order.Provided that the Authority may grant an opportunity to the promoter torectify the defects in the application within such time period as may bespecified by it.7. Revocation of registration of the project.— Upon the revocation ofregistration of a project as per section 7 of the Act, the Authority shall issuesuch revocation in Form ‘D’.CHAPTER - IIIREAL ESTATE AGENT8. Application for registration by the real estate agent.—(1) Every real estate agent required to be registered as per sub-section (2) ofsection 9 of the Act by making application in writing to the Authority inForm ‘G’ annexed to this order, in triplicate, until the applicationprocedure is made web based, along with the following documents,namely:(a) the brief details of his enterprise including its name, registered address,type of enterprise (proprietorship, societies, partnership, company etc.);

7(b) the particulars of registration (whether as a proprietorship, partnership,company, society etc.) including the bye-laws, memorandum ofassociation, articles of association etc. as the case may be;(c) name, address, contact details and photograph of the real estate agent,if it is an individual and the name, address, contact details andphotograph of the partners, directors etc. in case of other entities;(d) the authenticated copy of the PAN card of the real estate agent;(e) the authenticated copy of the address proof of the place of business.(2) The real estate agent shall pay a registration fee at the time of applicationfor registration either by way of a demand draft or a bankers cheque drawnon any scheduled bank or through online payment, as the case may be, for asum of ten thousand rupees in case of the applicant being an individual orfifty thousand rupees in case of the applicant other than an individual.9. Grant of registration to the real estate agent.—(1) On receipt of the application under rule 8, the Authority shall within aperiod of thirty days either grant registration to the real estate agent orreject the application, as the case may be:Provided that the Authority may grant an opportunity to the real estateagent to rectify the defects in the application within such time period asmay be specified by it before rejecting the application.(2) Upon the registration of a real estate agent, the Authority shall issue aregistration certificate with a registration number in Form ‘H’ annexed tothis order to the real estate agent.(3) In case of rejection of the application, the Authority shall intimate theapplicant in Form ‘I’.(4) The registration granted under this rule shall be valid for a period of fiveyears.10.Renewal of registration of real estate agent.—(1) The registration granted to a real estate agent under the Act, may berenewed, on an application made by the real estate agent in Form ‘J’annexed to this order, in triplicate, until the application procedure is madeweb based, which shall not be less than three months prior to the expiry ofthe registration granted.(2) The application for renewal of registration shall be accompanied with ademand draft or a bankers cheque drawn on any scheduled bank or throughonline payment, as the case may be, for a sum of five thousand rupees incase of the real estate agent being an individual or twenty five thousandrupees in case of the real estate agent other than an individual.(3) The real estate agent shall also submit all the updated documents set out inclauses (a) to (e) of sub-rule (1) of rule 8 at the time of application forrenewal.(4) In case of renewal of registration, the Authority shall issue renewalcertificate of registration in Form ‘K’ and in case of rejection of theapplication for renewal of registration, the Authorityshall issue rejection ofapplication in Form ‘I’:

8Provided that no application for renewal of registration shall be rejected,unless the applicant has been given an opportunity of being heard in thematter:Provided further that the Authority may grant an opportunity to the realestate agent to rectify the defects in the application within such timeperiod as may be specified by it.(5) The renewal granted under this rule shall be valid for a period of five years.11.Revocation of registration of real estate agent.—The Authority may, for the reasons specified under sub-section (7) ofsection 9 of the Act, revoke the registration granted to the real estate agentor renewal thereof, as the case may be, and intimate the real estate agentof such revocation in Form ‘I’.12.Books of accounts, records and documents.—The real estate agent shall maintain and pre

G.O.Ms.No.202, Dated: 31-07-2017 Read: - Real Estate (Regulation and Development), Act,2016. ORDER: - The appended Notification will be published in Telangana Gazette Dated:04-08-2017. (BY ORDER AND IN THE NAME OF THE GOVERNOR OF TELANGANA) SUNIL SHARMA PRINCIPAL SECRETARY TO GOVERNMENT (TR&B) & .

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