Brief of RERA Registration
RERA Registration stands for Real Estate Regulatory Authority Registration. The RERA Registration is protected by the Real Estate Act. The act was enacted to bring regularity in the laws for real estate sector. The act is proposed for the state level area. That means the act is implemented on state wise accordingly. Thus RERA Registration differs from one state to that of another state.
The RERA Act was brought into existence from 2016 by the Indian Government. The act was enacted to address the buyers, sellers, brokers, stakeholders, and all others engaged in such activities and to bind all of them under one roof into the specified laws. This will help to bring a uniform law in the field.
Earlier there was no uniform law regarding the RERA sector but due to its enactment in 2016, the sector was codified as single law which helped the individuals engaged in it. Now all the intermediaries, buyers, sellers, and other entity will be regulated from the RERA Act itself.
What is RERA?
RERA is Real Estate Regulatory Authority. It was established to bring transparency for real estate. It specifies rules and regulations for building and development for a particular state. That will also bring accountability in the real estate industry.
RERA also monitors the industry and helps to eradicate its problem arising in the sector or with any projects related to it. By which the buyers will be relief from unfair builder’s activities. The authority also resolves disputes related to real estate.Thus RERA has great importance in the field of Real Estate Industry. Establishment of such authority has shown out transparency and uniformity in the industry.
RERA Registration is the process in which the builder requires to obtain registration number for RERA for construction project. Before beginning any such project the builder requires to obtain the RERA Registration compulsory. The RERA Registration is must where the area of construction exceeds 500 square meters or the numbers of apartments exceeds eight. It is mandatory to be obtained by all the builders who are engaged in such projects.
RERA Registration governs residential and commercial real estate transaction over a state by its respective state authority. That means on the basis of project location the State level RERA authority ensures the regulation of the RERA laws. The RERA Registration also ensures about the accountability of builders over the project.
The Registration provides various benefits to the individuals or entity engaged in such activities. The Registration will help out in ensuring timely delivery of the projects which is for either residential or for commercial purpose.
Need for RERA Registration
The RERA Registration is required due to the following reasons-
The entity which is registered under the RERA will be transparent with all the projects. The regular progress of the projects development shall be brought into the knowledge of the owner itself. Thus RERA Registration mandates the construction company with its compliance.
Under the RERA Registration, the company is accountable for all its promises made while projects takeover. On the same note, if it is not followed properly, the owner can file a complaint against the broker or construction company. Both broker and builder are liable for accountability towards the owner of the house.
The RERA Act is applicable throughout India. Thus a uniform pattern has been adopted in overall India. Although in different states different registration is required to be obtained. But all states will be guided under the same Real Estate Regulation Act.
Objective of RERA Registration
The RERA Registration has the following objectives of its enactment-
- Assurance of Quality:
- Boost real estate investments:
- Transparency and accountability:
- Resolve grievances:
- Impose compliances:
- Fair play dealings:
- Appellate tribunal establishment:
The RERA Registration secures the money of home buyers and inventors. 70% of amount shall be kept in a separate bank account. This also helps to reduce fraud among the builders and protect the home buyers.
Usually earlier, the builders assure the quality but the same while delivers lack in it. Thus under the RERA Registration the builder has been compliance that if till the five years of possession buyers found the defect, it shall be maintained by the builder itself. And the builder shall be also be penalized. This will ensure the builder to maintain good quality and delivers the result accordingly.
While providing various benefits and also compliance upon the parties, the individuals interested in such sector would love to invest in it as that provides security to them. This will initially boost the investments in the real estate sector.
The objective of RERA Registration is to increase the transparency level and accountability over the projects towards the buyers. Due to which buyer will also be aware of the property he/ she are buying. This will help to protect their interest over the property.
The RERA Registration will also help the individuals engaged in such work and registered in the field to solve the grievances arising through the projects. Separate authority is established in order to resolve dispute among the parties.
RERA Registration imposes compliance upon all the individuals engaged in the real estate sector. Through the compliance the RERA binds the parties with its rules and the same needs to be followed by the parties.
Earlier, the builder used to delay the work and deliver the houses to the owner not on prescribed time. Due to which the interest over the houses of owner lacks down. But with the RERA Registration the constructor needs to deal and prescribed the time limit and work accordingly to it only.
RERA has also established appellate tribunal in order to enhance the one who is not satisfied by the orders, decisions of the RERA Authority. Thus the one who gets infringe through the decisions of RERA authority will appeal further to the Appellate tribunal.
Benefits of RERA Registration
The benefits of RERA Registration are as follows-
- Timely completion of Projects:
- Prescribed plan:
- Proper structure:
- License Clearness required:
- Grievance Redress:
One of the major benefits of RERA Registration is that the timely completions of projects are to be adhered by the compliance officer. On the normal course, the builders make false commitments regarding completion of projects. And deliver the construction not on time. Thus RERA compliance on the builders for timely construction and deliver the same on time. In the absence of such compliance the builder is penalized.
The builder shall prescribe the plan to the owner of the house and shall deliver the same on time. The plan once proposed shall not be modified or alter in any way without the knowledge of the owner. And if the builder found guilty of such task he will be penalized or imprisoned.
The structure of the house shall be same as prescribed in the plan. After purchase if the structure seems defected, the owner can mention the same to the builder and he/ she is then accountable for repairing the defect in the structure. The limit of defect for which the builder is accountable is fixed up to five years.
The builder shall obtain all the clearness required before the proposal as that will directly affect in construction and delivery of flat. Thus it is advisable to clear all the required registration and license within the due time prescribed or as soon as possible.
The advertisement of the projects cannot be made before RERA Registration. Thus after obtaining the registration the builder or developer can advertise his/ her real estate projects into the market. While advertisement of the projects it is mandatory to show cast the number of RERA Registration in every advertisement or while promotion.
The RERA Registration has not only been fixed to its objective but today it also involves Professionalism in the industry. The government is initiating various schemes in the sector to involve more and more people into the field.
Under the RERA Registration, the benefit is also provided to the buyers, brokers, builders, promoters and others registered under the act that he/ she has the right to complain to the concerned RERA authority regarding any issue in the project. After the RERA decision or order, the one who is not satisfied with it can appeal further into the Appellate tribunal established in the respective state.
Eligibility of RERA Registration
RERA Registration can be applied by the all the following-
Engaged in construction and reselling the houses, flats, building or plots for household or for commercial purpose.
Documents for RERA Registration
The government has initiated different documents requirement for RERA Registration and these are mentioned as follows:
For Promoter or Company:--
- Copy of MoA and AoA
- Certificate of Incorporation of company
- Registered business address proof
- Email in the name of company
- PAN card of the company
- TAN card of the company
- Company Identification Number
- Information related to previous real estate experience
- Information related to directors and shareholders of the company
- Real estate recent project details- sanction plan, layout plan, location details, etc.
An Individual Promoter or Builder:--
- Individual Name
- PAN Card of Individual
- Father’s name of Individual
- Occupation of Individual
- Residential Proof of Individual
- Income Tax Details of Individuals
- Audited Balance Sheets
- Promoters Official Website
- Income Tax Return
- Previous Project Experience
- Passport size photographs of Individual
- Email ID of the Builder
Real Estate Agent:--
- State of the Agent
- District of the Agent
- Tehsil details of the Agent
- Bank details (Punjab National Bank)
- Digital Signature Certificate obtained by Agent
- Copy of registration fees
- Details of registration
- Name of Agent
- PAN Card details
- Father’s name of Agent
- Residence Proof of Agent
- Income Tax Details
- Audited Balance Sheets
Areas of applicability of RERA Registration
Following mentioned is the situation where RERA Registration is applied-
- Parties to the contract:
The RERA Registration is applied to all the promoters, contractors, builder, developer, agents, etc engaged in real estate sector. All these bodies shall be engaged in constructing or developing any land, building or apartment for further sale.
The properties like commercial buildings, residential flats, etc constructed for sale purpose.
The area where the RERA Registration is applied shall exceed 500 sq. meters or constitute eight flats or more than that.
Impact of RERA Registration
RERA Registration has great impact in the real estate sector. The impact is not only on the buyers but also various changes have been made towards the promoters, agents and other intermediary. Following are some of the impacts mentioned:
- Right to information is guaranteed to the owners of houses. The builder shall specify every detail in advance of project and no disclosure of major detail shall be hidden by the owner.
- Under the RERA rules, the buyer needs to pay for property on the basis of house area. The builder cannot charge for the other built up area like corridors, parking area, balconies, stairs, etc.
- Every builder engaged in RERA projects shall create a separate bank account. In this bank account, builders need to put 70% money they get from homebuyers. This money will be used for only construction purposes.
- RERA Registration emphasis for timely completion of construction projects. If the same in not followed the builder shall be liable to pay 2% interest on the amount for the delay time period.
- No alterations or modifications are required to be made in the proposed building plan without informing at least two third owners. The plan will allow modifications only if majority of owners give their consent regarding the same.
- The RERA Registration has mandate to take only 10% as advance from the homebuyers.
RERA Registration has brought many more changes into the sector which is beneficial to the industry as whole.
Procedure for obtaining RERA Registration
The RERA Registration shall be now obtained by online procedure. The process differs from state to state.
- The applicant needs to fill out the required application form available in the official website of the respective state of RERA.
- The required documents shall be attested with the form itself.
- Then the prescribed payments shall be made.
- At last, a declaration form shall be filled out and submitted accordingly.
- After completion of all required details, the form shall be submitted duly.
Penalties under RERA Act
All the intermediaries engaged in the real estate sector have to follow certain norms prescribed by the RERA Act Regulation. The one who doesn’t follow the same will be penalized under the act. Few penalties are mentioned as follows:
- When the buyers doesn’t compliance with RERA rules and regulations. The penalty will be imposed on the buyer as 5% of the project.
- When buyer doesn’t compliance with the Appellate Tribunal, the penalty is imposed as 10% of the cost of project or imprisonment of one year or both.
- If any promoter has not registered himself under RERA then he/ she shall be liable to pay fine for the same. The fine shall be imposed by 10% of the estimated cost of the project.
- Any promoter who provides any false information during his business course shall be penalized for 5% of the estimated cost of the project.
- If the promoter violates the norms of RERA, he/ she shall be punishable with imprisonment up to three years or fine of 10% of the estimated cost of property or both.
- If the agents work without RERA Registration of projects, then agent will be penalized with Rs. 10,000 per day.
- When the agent doesn’t compliance with RERA rules, regulations, he/she will be penalized with 5% of the project estimated value daily.
- When the agent doesn’t compliance with the Appellate Tribunal then he/ she may be imprisoned up to one year or will be penalized with 10% of the estimated cost of the project or with both.
Bizadvisors Assistance for RERA Registration
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- We provide our best Professionals to guide you for RERA Registration.
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- You need to submit the required documents and information for RERA Registration and our professional will prepare the application in prescribed format.
- We have experts through which we can provide you registration in minimum time period.
- We also provide various license required for RERA Registration and its compliances.
The Bizadvisors have great facility for the client’s business upbringing and following are some reasons one should choose Bizadvisors:
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RERA Registration is required to be obtained by all such builders, promoters, agents, intermediaries, etc into the real estate sector. Without the registration the builders are not availed of the benefit of registration. Thus it is advisable to obtain it as soon as possible as that will ease the builder for business growth.
RERA Registration is obtained by the respective state government. It can be applied and obtained via online mode. The process and documentation of registration differs that of from other state. The one engaged in real estate business without RERA Registration will be liable to pay penalty.
So, you can contact Bizadvisors to hire our services for RERA Registration. Many more services we provide that can be glance at our site i.e. Bizadvisors. Do contact our team of experts to obtain successful RERA Registration on one go.
Frequently Asked Questions
RERA is Real Estate Regulatory Authority. It was established with its main objective to eradicate the disputes and grievances arising in the real estate sector. With adoption of RERA act there are many changes made in the sector to involve more and more individual to engage into the field.
RERA Registration avails great importance into the sector which is mentioned as follows:
- It establishes authority in every state to govern real estate transactions.
- It ensures time delivery of projects.
- It ensures transparency and accountability towards the project.
RERA Registration key benefits:
- Increase in transparency
- Builders are allowed to take advance of only 10%.
- Proposed plan can only be changed when majority or three fourth owners agree to it.
- Builders are not allowed to use the money of the owners in other projects
- Accountability towards owner.
- Timely delivery of project is initiated.
Carpet area includes those areas in a building which is usable as floor area by owner and the internal walls of house and excludes external walls, lifts, corridors, balcony, and terrace area.
RERA provide security of plot dealings, buildings, apartments, etc and other such projects which provide fair dealings and transparent transactions.
- The RERA Act was established in order to protect the interest of buyers in the real estate sector
- Bring transparency and accountability into the dealings.
- Establish tribunal and grievances authority to solve the dispute in the sector.
Homebuyers were facing lots of issues before the RERA Registration, few are mentioned as follows:
- Homebuyers need to plan, search for the prefect dream house
- The cost in the area
- False promises by builders and contractors
- High advance rate
- Change in the execution plan of the house
The compliances are regarded as important in real estate sector as that will decrease property frauds in the sector, eliminate the investment risk, safeguard buyers from frauds, ensure buyers with proposed plan of houses, etc.