MULTIPLE-CHOICE QUESTIONS WITH ANSWERS RELATED TO REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016
What is the primary objective of the Real Estate (Regulation and Development) Act, 2016?
a) To regulate property prices
b) To establish a Real Estate Regulatory Authority (RERA) for regulation and promotion of the real estate sector
c) To restrict the sale of properties
d) To abolish real estate development
Answer: b) To establish a Real Estate Regulatory Authority (RERA) for regulation and promotion of the real estate sector
Under the RERA Act, what is the maximum extension period for project completion beyond the original date?
a) 6 months
b) 1 year
c) 2 years
d) 3 years
Answer: c) 2 years
What percentage of the amount received from home buyers is to be deposited in a separate escrow account by the developer under RERA?
a) 20%
b) 50%
c) 70%
d) 100%
Answer: d) 100%
What happens if a real estate developer fails to register a project under RERA?
a) They are fined with up to 10% of the project cost
b) The project is automatically registered by the authority
c) They lose the right to sell any units in that project
d) They are blacklisted from future real estate projects
Answer: a) They are fined with up to 10% of the project cost
Which of the following is not a mandatory disclosure by the promoter as per the RERA Act?
a) Project plan
b) Title and land details
c) Sales forecast for the project
d) Carpet area of apartments
Answer: c) Sales forecast for the project
What is the penalty for non-compliance with the orders of the Real Estate Appellate Tribunal under the RERA Act?
a) Imprisonment for up to 1 year
b) Fine of up to 10% of the estimated project cost
c) Both a) and b)
d) Community service for 6 months
Answer: c) Both a) and b)
What is the minimum percentage of project completion required for a developer to apply for registration under RERA?
a) 20%
b) 30%
c) 50%
d) 70%
Answer: c) 50%
Which entity appoints the Chairperson and Members of the Real Estate Regulatory Authority (RERA)?
a) Central Government
b) State Government
c) Local Municipal Corporation
d) Supreme Court of India
Answer: b) State Government
According to the RERA Act, what is the maximum percentage of advance collected by the promoter from home buyers before signing a sale agreement?
a) 10%
b) 20%
c) 30%
d) 50%
Answer: a) 10%
What does the ‘Carpet Area’ represent in the context of the RERA Act?
a) The total area of the building including walls and balconies
b) The area enclosed within the walls, excluding balconies and common areas
c) The area available for sale to homebuyers
d) The area for parking spaces in the project
Answer: b) The area enclosed within the walls, excluding balconies and common areas
Which authority can revoke the registration of a real estate agent under RERA?
a) Real Estate Regulatory Authority (RERA)
b) Real Estate Appellate Tribunal
c) State Government
d) Local Municipality
Answer: a) Real Estate Regulatory Authority (RERA)
What is the timeline for submitting the quarterly update of project status by the promoter to the authority under RERA?
a) 30 days from the end of the quarter
b) 45 days from the end of the quarter
c) 60 days from the end of the quarter
d) 90 days from the end of the quarter
Answer: b) 45 days from the end of the quarter
How long does a developer have to rectify any structural defects reported by homebuyers after possession, as per the RERA Act?
a) 6 months
b) 1 year
c) 2 years
d) 3 years
Answer: c) 2 years
What is the penalty for non-compliance with the orders of the Real Estate Regulatory Authority (RERA)?
a) Imprisonment for up to 3 years
b) Fine of up to 5% of the project cost
c) Both a) and b)
d) Cancellation of the real estate project
Answer: c) Both a) and b)
Which type of projects are exempted from the provisions of RERA?
a) Projects with less than 8 units
b) Projects for commercial use only
c) Projects approved before the implementation of RERA
d) Affordable housing projects
Answer: a) Projects with less than 8 units
What is the maximum percentage of the project’s cost that a developer can demand as an advance payment before entering into a written agreement for sale under RERA?
a) 10%
b) 20%
c) 30%
d) 50%
Answer: a) 10%
Which parties are required to obtain registration under RERA?
a) Promoters and real estate agents
b) Only real estate agents
c) Only builders
d) Only promoters
Answer: a) Promoters and real estate agents
What is the timeline for RERA to dispose of complaints against any promoter or real estate agent?
a) Within 30 days
b) Within 60 days
c) Within 90 days
d) Within 120 days
Answer: c) Within 90 days
What is the penalty for non-compliance with the directions or orders of the Appellate Tribunal under RERA?
a) Imprisonment for up to 1 year
b) Fine of up to 5% of the project cost
c) Both a) and b)
d) Suspension of real estate business for 6 months
Answer: c) Both a) and b)
Which type of projects fall under the purview of RERA?
a) Residential projects
b) Commercial projects
c) Both residential and commercial projects
d) Only government-initiated projects
Answer: c) Both residential and commercial projects
What percentage of the total amount realized for the real estate project should be deposited in a separate bank account under RERA?
a) 10%
b) 20%
c) 50%
d) 70%
Answer: d) 70%
Who appoints the Adjudicating Officer under RERA?
a) Real Estate Regulatory Authority (RERA)
b) State Government
c) Central Government
d) Real Estate Appellate Tribunal
Answer: a) Real Estate Regulatory Authority (RERA)
Which section of the RERA Act deals with the establishment of Real Estate Regulatory Authorities (RERAs) in each state?
a) Section 20
b) Section 22
c) Section 40
d) Section 85
Answer: b) Section 22
According to RERA, what is the maximum extension allowed by the Real Estate Regulatory Authority (RERA) for project completion beyond the original date?
a) 6 months
b) 1 year
c) 2 years
d) 3 years
Answer: c) 2 years
What is the consequence for a real estate agent if they fail to comply with the orders or directions of the Appellate Tribunal under RERA?
a) Fine of up to 10% of the brokerage earned
b) Suspension or revocation of registration
c) A warning notice issued by RERA
d) Mandatory retraining program
Answer: b) Suspension or revocation of registration
What does RERA stand for?
a) Real Estate Regulation Authority
b) Real Estate Registration Act
c) Real Estate Regulatory Act
d) Real Estate (Regulation and Development) Act
Answer: d) Real Estate (Regulation and Development) Act
What is the primary purpose of the RERA Act?
a) To control property prices
b) To promote real estate speculation
c) To regulate and promote the real estate sector
d) To restrict real estate development
Answer: c) To regulate and promote the real estate sector
According to RERA, how often should the developer update the project details on the regulator’s website?
a) Monthly
b) Quarterly
c) Biannually
d) Annually
Answer: a) Monthly
What is the maximum percentage of the project cost that can be imposed as a penalty for non-compliance with RERA regulations?
a) 5%
b) 10%
c) 15%
d) 20%
Answer: b) 10%
Who can file a complaint with the Real Estate Regulatory Authority (RERA)?
a) Only homebuyers
b) Only builders
c) Homebuyers, builders, and real estate agents
d) Only the government
Answer: c) Homebuyers, builders, and real estate agents
Under RERA, what is the consequence for a promoter who fails to register a real estate project before advertising, marketing, or selling?
a) Penalty up to 5% of project cost
b) Imprisonment for up to 3 years
c) Fine up to 10% of project cost or imprisonment for up to 3 years
d) Project registration is automatically initiated
Answer: c) Fine up to 10% of project cost or imprisonment for up to 3 years
Which entity monitors and regulates real estate projects after their registration under RERA?
a) Real Estate Regulatory Authority (RERA)
b) Real Estate Appellate Tribunal
c) State Government
d) Central Government
Answer: a) Real Estate Regulatory Authority (RERA)
What is the maximum percentage of brokerage allowed to be charged by real estate agents as per the RERA Act?
a) 1%
b) 2%
c) 3%
d) 5%
Answer: b) 2%
According to RERA, what happens if the developer fails to complete the project within the specified time frame?
a) The project gets automatically extended for another year
b) The developer can request an extension without penalty
c) The developer is liable to pay compensation to the allottees
d) The developer can abandon the project without consequences
Answer: c) The developer is liable to pay compensation to the allottees
What is the tenure of the Chairperson and Members of the Real Estate Appellate Tribunal as per RERA?
a) 3 years or until the age of 65, whichever is earlier
b) 5 years or until the age of 70, whichever is earlier
c) 4 years or until the age of 62, whichever is earlier
d) 2 years or until the age of 60, whichever is earlier
Answer: b) 5 years or until the age of 70, whichever is earlier
What does the ‘Force Majeure’ clause in RERA refer to?
a) An unforeseen event preventing project completion
b) A clause allowing the developer to increase prices unexpectedly
c) A clause protecting buyers from fraud
d) An agreement between the builder and the government
Answer: a) An unforeseen event preventing project completion
Which document should the promoter disclose under RERA to authenticate their legal title to the land on which the project is proposed?
a) Building plan
b) Sanctioned plan
c) Development agreement
d) Title deed
Answer: d) Title deed
What percentage of project completion is required for the promoter to apply for the issuance of the completion certificate under RERA?
a) 50%
b) 60%
c) 70%
d) 80%
Answer: c) 70%
How long is the validity period for the registration of a real estate project under RERA?
a) 1 year
b) 2 years
c) 3 years
d) 5 years
Answer: b) 2 years
Which party is responsible for maintaining and updating the website of the Real Estate Regulatory Authority (RERA)?
a) Central Government
b) State Government
c) Real Estate Appellate Tribunal
d) Real estate agents
Answer: a) Central Government
What is the maximum percentage of project cost that a developer can demand as an advance payment before entering into a written agreement for sale under RERA?
a) 10%
b) 20%
c) 30%
d) 50%
Answer: a) 10%
Who appoints the Adjudicating Officer under RERA?
a) Real Estate Regulatory Authority (RERA)
b) State Government
c) Central Government
d) Real Estate Appellate Tribunal
Answer: a) Real Estate Regulatory Authority (RERA)
What is the consequence for a real estate agent if they fail to comply with the orders or directions of the Appellate Tribunal under RERA?
a) Fine of up to 10% of the brokerage earned
b) Suspension or revocation of registration
c) A warning notice issued by RERA
d) Mandatory retraining program
Answer: b) Suspension or revocation of registration
What is the maximum time period within which the Real Estate Appellate Tribunal must hear and dispose of appeals against RERA orders?
a) 30 days
b) 45 days
c) 60 days
d) 90 days
Answer: c) 60 days
According to RERA, what happens if a developer violates the orders of the Real Estate Regulatory Authority (RERA)?
a) The project is taken over by the government
b) The developer loses the right to construct future projects
c) Imprisonment for up to 3 years or a fine
d) The authority cancels the project registration
Answer: d) The authority cancels the project registration
Which entity has the power to notify rules and regulations to carry out the provisions of the RERA Act?
a) Central Government
b) State Government
c) Real Estate Regulatory Authority (RERA)
d) Real Estate Appellate Tribunal
Answer: a) Central Government
According to RERA, what is the maximum percentage of the project cost that can be imposed as a penalty for non-compliance with RERA regulations?
a) 5%
b) 10%
c) 15%
d) 20%
Answer: b) 10%
Who can file an appeal with the Real Estate Appellate Tribunal against the orders of the Real Estate Regulatory Authority (RERA)?
a) Only developers
b) Only homebuyers
c) Both developers and homebuyers
d) Only the government
Answer: c) Both developers and homebuyers
What is the maximum amount that a developer can charge for alterations or modifications in the building plans as per RERA?
a) 1% of the project cost
b) 2% of the project cost
c) 3% of the project cost
d) 5% of the project cost
Answer: b) 2% of the project cost
Which authority appoints the Chairperson and Members of the Real Estate Appellate Tribunal?
a) Central Government
b) State Government
c) Real Estate Regulatory Authority (RERA)
d) Supreme Court of India
Answer: a) Central Government
What percentage of the project cost can a developer demand as an advance payment before signing a sale agreement under RERA?
a) 10%
b) 20%
c) 30%
d) 50%
Answer: a) 10%
What is the penalty for failure to comply with the orders of the Real Estate Appellate Tribunal under RERA?
a) Fine of up to 5% of the project cost
b) Imprisonment for up to 1 year
c) Both a) and b)
d) Suspension of real estate business for 6 months
Answer: c) Both a) and b)
According to RERA, what is the time frame within which the developer should rectify structural defects reported by homebuyers after possession?
a) 6 months
b) 1 year
c) 2 years
d) 3 years
Answer: c) 2 years
What does ‘Occupancy Certificate’ signify under the RERA Act?
a) The certificate for the commencement of the project
b) The certificate issued after project completion for occupancy
c) The certificate validating the financial stability of the developer
d) The certificate of environmental clearance for the project
Answer: b) The certificate issued after project completion for occupancy
Which entity establishes the Real Estate Regulatory Authority (RERA) for each state or union territory?
a) Central Government
b) State Government
c) Real Estate Appellate Tribunal
d) Ministry of Housing and Urban Affairs
Answer: b) State Government
According to RERA, what percentage of the amount received from homebuyers is to be deposited in a separate escrow account by the developer?
a) 20%
b) 50%
c) 70%
d) 100%
Answer: d) 100%
What does RERA mandate regarding the maintenance of records and documents related to a real estate project?
a) Records should be maintained for a minimum of 5 years after project completion
b) Records should be maintained indefinitely by the developer
c) Records should be maintained for a minimum of 3 years after project completion
d) Records need not be maintained as per RERA
Answer: a) Records should be maintained for a minimum of 5 years after project completion
Which authority can impose penalties for non-compliance with the orders or directions of the Real Estate Regulatory Authority (RERA)?
a) Real Estate Appellate Tribunal
b) State Government
c) Central Government
d) Ministry of Housing and Urban Affairs
Answer: a) Real Estate Appellate Tribunal
What is the timeline within which RERA should dispose of complaints against real estate agents or promoters?
a) Within 60 days
b) Within 90 days
c) Within 120 days
d) Within 180 days
Answer: b) Within 90 days
What happens if a promoter fails to register a real estate project under RERA?
a) The project registration is extended for 6 months
b) The project is automatically registered by the authority
c) The promoter is fined up to 10% of the project cost
d) The promoter faces imprisonment for up to 3 years
Answer: c) The promoter is fined up to 10% of the project cost
