A promoter plays a very important role in the real estate sector and hence has been referred to as one of the important stakeholders of the sector apart from Allottees and real estate agents.
Who is a promoter?
A “promoter” under RERA is defined as a person or entity that:
1. Develops a real estate project for the purpose of selling, transferring, or allotting plots, apartments, or buildings.
2. Advertises or markets such real estate projects to the general public for the purpose of selling, transferring, or allotting.
RERA has defined a set of rights and duties for a Promoter
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Every real estate project needs to be registered with RERA on the portal
No promoter can advertise, sell , market his project unless he has registered his project in the RERA portal. A promoter will be liable for a penalty if he sells a unit of the project before registering his project.
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All marketing collaterals and advertisements should bear the MahaRERA registration number
Very critical that all marketing collaterals and advertisements and brochures should carry the MahaRERA registration number.
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Every Promoter needs to display a QR code of the project on every advertisement and promotional collateral
This is a new order that has been released by MahaRERA wherein a QR code needs to be displayed on all marketing and promotional activities.
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Promoter has to ensure that he gives quarterly updates on the status of the project in the RERA portal
This needs to be done diligently as this will also help the allottees to get an overview on the status of the project they are interested in purchasing.
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Promoter has to ensure that 70% of the funds need to be deposited in a separate bank account and this has to be used only for that project
Under the provisions of RERA, real estate promoters are now required to deposit a substantial 70% of the total funds collected for a particular project into an escrow account maintained with a scheduled bank. This provision was introduced to eliminate the misuse of funds and ensure that resources are allocated exclusively for the development and completion of the registered project.
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In essence, the role of a promoter within the real estate sector stands as a pivotal one, placing them as significant stakeholders alongside allottees and real estate agents. Under the umbrella of RERA, a promoter’s responsibilities and obligations have been clearly outlined, establishing a framework that ensures fairness, transparency, and accountability.
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