RERA stands for Real Estate Regulatory Authority and is established under the Real Estate (Regulation and Development) Act. The Act was introduced in 2016 to regularise the issues in the real estate sector. With the advent of RERA registration, transparency has improved and has benefited all parties to the transaction. It has also brought in accountability by reducing the chances of delay in real estate contracts. In this article, we shall look at the RERA registration process.
What is the objective of RERA Registration?
The following objectives are intended to be achieved:
Increased transparency and accountability to protect the interests of consumers;
Resolving grievance by the establishment of the dispute resolution mechanism;
Reduction in the number of frauds by increasing compliances;
Ensuring fair play that helps in reducing delay in delivering the promises;
Ensuring smooth operations by induction of professionalism and standards in place;
Creating awareness by promoting practices of good governance;
Bringing ease in transactions with accountability and responsibility on the promoter and the buyer;
Setting up of an appellate tribunal to hear appeals arising from the orders or decisions of RERA.
Applicability of RERA Registration Process
The RERA Registration Process shall be applicable to-
Parties to transaction: It shall apply to real estate agents, promoters, which includes builder, developer, contractor, development body, or any other public body who constructs or develops land/building/apartment for the purpose of sale.
Type of Properties: It shall apply to commercial buildings, residential apartments, and plot for the purpose of sale.
Area: It shall apply for real estate projects exceeding 500 sq.m or having more than 8 apartments.
Who are exempted from RERA Registration?
The below mentioned persons are exempted from the registration of real estate projects:
Where the area of land to be developed doesn’t exceed 500 sq.m or the number of apartments developed doesn’t exceed 8 apartments, including all the phases are exempted from RERA Registration Process.
Where the promoter has received the completion certificate for a real estate project before the commencement of RERA, is exempted from registration.
Where the real estate projects to be remodelled or replaced or development of projects are those projects that don’t need to be marketed, advertised, sold, or new allotment of an apartment.
RERA Registration Process and the Required Documents
It is a state-wise registration process and therefore varies from state to state. The whole process is done online and can be applied from the official website of the state where the registration is applied for. The promoters and the real estate agents are required to submit the relevant documents with the application for registration to their respective regulating authority of their respective states.
Documents required for Promoter Registration-
PAN Card of the promoter;
Legal title deeds reflecting the title of the promoter of the land where the project is proposed;
Encumbrance certificate relating to the land of the project;
Certificate of commencement of the project;
Plan of development works to be executed in the project;
The sanction plan, layout plan, and the details of the location of the project;
Previous project experience of the promoter.
Along with this, the following documents relating to previous project experience of the promoter is to be submitted:
Experience of previous project;
Name and status of the project;
Any delay in its completion;
Pending case, if yes- case name and number.
In case the promoter is an enterprise like a company, partnership, society, or proprietorship, the following additional documents is to be submitted:
Name, type, and address of the enterprise;
Registration Certificate of the enterprise, MOA, and AOA is also required;
An audited balance sheet of previous three financial years;
Audited report and directors’ report of preceding three years;
Name, address, contact details, and photo of the promoter/director/chairman/partners/ or any other authorized person.
The promoter shall be issued a registration number, Login ID, and password after receiving the registration application. Such login ID as well as password may be used by the promoter for status update of the project on the RERA website.
RERA Registration shall be valid for the period within which the promoter intends to complete the project as declared by him. It can be extended in case of natural calamity like flood, fire, war etc. Such an extension shall be valid for a one year period.
Documents required for Real estate agent registration-
PAN card of such agent;
Permanent address proof;
Details of real estate agent enterprise, if applicable that includes its name, address, type of enterprise, proprietorship, societies, partnership, companies, etc.
Particulars of registration of enterprise such as MOA, AOA, etc. as the case may be.
Why registering real estate projects under RERA is beneficial for buyers?
There are numerous reasons as to why the RERA registration process is beneficial for buyers. Some of the reasons include the following:
Timely possession of the property
When promoters register under RERA, they are required to provide the estimated date of the completion of the project. In case the promoter fails to deliver, huge penalties will be imposed on such promoter.
Accurate details of the project
The promoter is required to give the accurate details of the project such as the stag of completion, the amenities provided and other details which can’t be changed later.
Repairing of defects
The promoter shall set right any defect or deficiencies post the purchase of the project.
Assured license clearances
Promoters registered under RERA should have licenses in place before selling. Therefore the buyers can’t be lured into fraudulent schemes anymore.
Payment of the booking amount
The payment of the booking amount has to be done only after the registration of the sale agreement.
It may be noted that RERA Registration is mandatory for promoters, real estate agents, and in case of non-registration severe penalties may be imposed. The RERA Registration process is simple however you are advised to seek the assistance of a professional in this regard.
Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on criminal and corporate law. He is a creative thinker and has a great interest in exploring legal subjects.