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The acronym RERA stands for Real Estate Regulatory Authority (“RERA”) which is established under the Real Estate (Regulation & Development) Act (“Act”). This Act was introduced in the year 2016 to regularise the problems existing in the real estate sector. The Act will be implemented at the State level, and the governing authorities are responsible for the following:
RERA registration brings about transparency in these contracts and benefits all the parties to the transaction. It also brings about accountability by reducing the chances of delay in real estate contracts. The main aim of the registration is to protect buyers of real estate and simultaneously uplift the investment in the real estate sector.
RERA registration is a state-wise registration process and hence varies from state to state. The process is online and can be applied from the official website of the state in which the registration is applied for. The promoters and the real estate agents have to submit the relevant documents along with the application for registration to the Regulating Authority of their respective states.
There are some documents that are common to the registration process across all states. They are as follows:
Documents required for Promoter Registration:
The following documents related to the previous project experience, if any of the promoter/promoter enterprise is to be submitted along with the registration:
If the promoter is an enterprise such as a company, partnership, society or proprietorship, the following additional documents relating to the promoter enterprise is required:
In case the promoter is not the landowner on which the project development is proposed, then the following documents are required:
Documents required for Real Estate Agent Registration:
Note: Real estate agents who are engaged in the sale and purchase of properties can get the RERA registration that will remain valid throughout the state.
The promoter will be issued a Registration Number, Login Id, and password after receipt of the application for registration. The login id and password can be used by the promoter for updating the status of the project on the website of RERA.
The fees for registration under RERA varies from state to state. The fee for promoters is based on the area of the project subject to a maximum limit. The fees for agents are based on the entity type.
The RERA Registration is valid for the period within which the promoter undertakes to complete the project as declared by him. The same can be extended in case of a natural calamity such as flood, fire, war etc. Such extensions will be valid for a period of one year.
The biggest loophole in the real estate sector has been fake promises by promoters of completion and delivery of projects, thereby causing huge financial worries and mistrust among the buyers. When promoters register under the RERA, they must provide the estimated date of completion of the project, failing which there will be huge penalties imposed on the promoter.
The promoter must provide the complete and accurate details of the project like the stage of completion, the amenities provided, and other relevant details or projects being executed, which cannot be altered later.
Prior to RERA, the promoters would never receive the mandatory licenses and clearance from the government and delay the projects on the pretext of the same. However, for promoters registered under RERA, it is mandatory to have the licenses in place before selling even a single unit. Hence the buyers cannot be now lured into fraudulent schemes.
It is the responsibility of the promoter to set right any defect, and deficiencies post the purchase by the buyer.
The promoter can advertise their projects only after getting the required registration under RERA, and the registration number must also be displayed in the advertisement.
The booking amount of 10% has to be paid only after the registration of the sale agreement.
Yes. You can register a complaint about any violation committed under the RERA Act with the RERA Adjudicating Officer or the Real Estate Regulatory Authority of the respective state.
The following penalties are applicable under the RERA Act:
The following projects are not required to be registered under the RERA Act:
Yes, the RERA Act is applicable in all states of India.
Initially, only residential projects were covered in the RERA bill. However, later on commercial projects including buildings, shops and offices were also included in the RERA Act through various amendments.
Yes. When the RERA authority receives any complaint against a developer or builder and is satisfied that they are not complying with the regulations, then it may revoke the registration.
The RERA registration is valid for the period of the project completion as declared by the promoter.
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