What is the restriction to take advance by the Promoter?, No deposit or advance to be taken by promoter without first entering into agreement for sale under section 13 of The Real Estate (Regulation and Development Act, 2016). No deposit or advance to be taken by promoter without first entering into agreement for sale is defined under Section 13 of the Act. Provisions under Section 13 are:
(1) A promoter shall not accept a sum more than ten per cent 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 and register the said agreement for sale, under any law for the time being in force.
(2) The agreement for sale referred to in sub-section (1) shall be in such form as may be prescribed and shall specify the particulars of development of the project including the construction of building and apartments, along with specifications and internal development works and external development works, the dates and the manner by which payments towards the cost of the apartment, plot or building, as the case may be, are to be made by the allottees and the date on which the possession of the apartment, plot or building is to be handed over, the rates of interest payable by the promoter to the allottee and the allottee to the promoter in case of default, and such other particulars, as may be prescribed.
The Real Estate (Regulation and Development) Act, 2016
CHAPTER - II REGISTRATION OF REAL ESTATE PROJECT AND REGISTRATION OF REAL ESTATE AGENTS
Section 3 : Prior registration of real estate project with Real Estate Regulatory Authority
Section 4 : Application for registration of real estate projects
Section 5 : Grant of registration
Section 6 : Extension of registration
Section 7 : Revocation of registration
Section 8 : Obligation of Authority consequent upon lapse of or on revocation of registration
Section 9 : Registration of real estate agents
Section 10 : Functions of real estate agents
CHAPTER III FUNCTIONS AND DUTIES OF PROMOTER
Section 11 : Functions and duties of promoter
Section 12 : Obligations of promoter regarding veracity of the advertisement or prospectus
Section 14 : Adherence to sanctioned plans and project specifications by the promoter
Section 15 : Obligations of promoter in case of transfer of a real estate project to a third party
Section 16 : Obligations of promoter regarding insurance of real estate project
Section 17 : Transfer of title
Section 18 : Return of amount and compensation
CHAPTER IV RIGHTS AND DUTIES OF ALLOTTEES
Section 19 : Rights and duties of allottees
CHAPTER V THE REAL ESTATE REGULATORY AUTHORITY
Section 20 : Establishment and incorporation of Real Estate Regulatory Authority