RERA Act 2016 MCQs | Real Estate (Regulation and Development) Act

In this article we have added most important MCQs of RERA Act 2016. All this MCQs are very important for your upcoming examinations. For more MCQs practice regularly visit our Website.

Real Estate (Regulation and Development) Act 2016 MCQs

Under the RERA Act, what is the maximum extension period for project completion beyond the original date?

1. 6 months
2. 2 years
3. 1 year
4. 3 years

Explanation :-

• Section 6
  • The registration granted under section 5 may be extended by the Authority on an application made by the promoter, due to force majeure.
  • Maximum extension period – 1 Year
• Force majeure – War, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature.

According to RERA, how often should the developer update the project details on the regulator’s website?

1. Quarterly
2. Biannually
3. Annually
4. Monthly

Explanation :-

• Section 11
  • Developers should update the project details every 3 months (quarterly) on the regulator’s website.
• Which details should the developer update on the regulator’s website?
  • Details of the registration granted by the Authority
  • List of approvals taken and the approvals which are pending subsequent to commencement certificate
  • The list of number and types of apartments or plots, as the case may be, booked
  • Progress of the project
  • The list of number of garages booked
  • List of approvals taken and the approvals which are pending subsequent to commencement certificate

Which party is responsible for maintaining and updating the website of the Real Estate Regulatory Authority (RERA)?

1. Central Government
2. State Government
3. Real Estate Appellate Tribunal
4. Real estate agents

Explanation :-

• According to the RERA Act, the primary responsibility for maintaining and updating the website of the Regulatory Authority in each state lies with the State Government.
• As per the law, every State Government establishes a ‘Real Estate Regulatory Authority’ (RERA) for its respective state. For example, GujRERA for Gujarat and MahaRERA for Maharashtra.
• The fundamental responsibility to create, operate, and maintain the official website of this authority belongs to the State Government (or the Central Government in the case of Union Territories).”

Who can file a complaint with the Real Estate Regulatory Authority under the RERA Act?

1. Homebuyers
2. Allottees
3. Real estate agents
4. All of the above

Explanation :-

• Section 31
  • Any aggrieved person may file a complaint with the Authority or the adjudicating officer, as the case may be, for any violation or contravention of the provisions of this Act or the rules and regulations made thereunder, against any homebuyers, promoter, allottees or real estate agent, as the case may be.

What is the minimum project size that requires registration under the RERA Act?

1. 500 square meters or more
2. 1,000 square meters or more
3. 2,000 square meters or more
4. 5,000 square meters or more

Explanation :-

• Section 3(2)(a)
  • Registration of the real estate project shall be required where the area of land proposed to be developed exceeds 500 square meters or the number of apartments proposed to be developed exceeds 8 inclusive of all phases.

What is the maximum penalty for non-registration of a real estate project under the RERA Act?

1. 5% of the estimated project cost
2. 10% of the estimated project cost
3. 15% of the estimated project cost
4. 20% of the estimated project cost

Explanation :-

• Section 59
  • If any promoter contravenes the provisions of section 3, he shall be liable to a penalty which may extend up to 10% of the estimated cost of the real estate project as determined by the Authority.
  • If any promoter does not comply with the orders, decisions or directions issued under sub-section (1) or continues to violate the provisions of section 3, he shall be punishable with imprisonment for a term which may extend up to 3 years or with fine which may extend up to a further 10% of the estimated cost of the real estate project, or with both.

What percentage of the amount received from home buyers is to be deposited in a separate escrow account by the developer under RERA?

1. 20%
2. 50%
3. 70%
4. 100%

Explanation :-

• Section 4(2)(L)(D)
  • 70% of the amounts realised for the real estate project from the allottees, from time to time, shall be deposited in a separate account to be maintained in a scheduled bank to cover the cost of construction and the land cost and shall be used only for that purpose:
  • Scheduled bank account – ‘Escrow Account’ or ‘Separate Account’

What is the timeline for RERA to dispose of complaints against any promoter or real estate agent?

1. Within 30 days
2. Within 60 days
3. Within 90 days
4. Within 120 days

Explanation :-

• Section 29
  • The Authority shall endeavor to dispose of any complaint (against any promoter or real estate agent) within 60 days from the date of its receipt.”
  • Provided that where any such application could not be disposed of within the said period of 60 days, the Authority shall record its reasons in writing for not disposing of the application within that period.

Which ministry is responsible for the implementation of the RERA Act?

1. Ministry of Housing and Urban Affairs
2. Ministry of Finance
3. Ministry of Law and Justice
4. Ministry of Commerce and Industry

Explanation :-

• The Ministry of Housing and Urban Affairs (MoHUA) of the Government of India is the parent ministry for the implementation of the RERA Act.
• This ministry prepared the draft of the RERA act and presented it in Parliament. It frames the rules of the act at the central level and provides guidance to the states for its implementation.

What is the maximum amount that a developer can charge for alterations or modifications in the building plans as per RERA?

1. 1% of the project cost
2. 3% of the project cost
3. 2% of the project cost
4. 5% of the project cost

Explanation :-

• If a developer makes any minor alterations in the building plan or design at the customer’s request, they cannot charge more than 2% of the total project cost.
• “If the builder wishes to make any major changes to the layout plan of the entire building or the sanctioned maps, it is mandatory for them to obtain the written consent of at least two-thirds (2/3) of the homebuyers in the project.