Rera Registration for Projects
Real developers and property sellers in India are required to register their projects under the Real Estate (Regulation and Development) Act, or RERA for short. Failure to do so can lead to disputes and legal repercussions. RERA has made it mandatory for developers, public bodies, and housing societies to apply for registration before advertising, selling or booking a project. In this article, we will explore the application procedure for obtaining RERA registration for projects in India. Whether you are a promoter or a buyer, understanding RERA is critical to safeguarding your interests in the ever-growing real estate market in India. So, let’s dive in and explore the world of RERA registration together.
A. Definition of RERA
The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, is a governmental regulation aimed at bringing more transparency and accountability to the real estate sector in India. RERA aims to protect the homebuyers’ interests and promote fair play in the real estate industry.
RERA came into effect from May 2017 with the objective of regulating the real estate sector and promoting transparency and accountability. It provides a comprehensive framework for the regulation of real estate projects in India. RERA requires developers to register their projects with the regulatory authority, and failure to comply with the rules outlined in RERA can result in penalties and legal actions.
RERA defines clear guidelines for developers that help promote transparency in the process of selling and buying properties. Furthermore, RERA ensures that developers use funds solely for the development of the project and protects the rights of the homebuyers. RERA registration provides that homebuyers can now invest in real estate with greater confidence and transparency.
RERA plays a vital role in protecting the rights of homebuyers, as it provides a robust legal framework for regulating the real estate sector. Overall, RERA is expected to benefit both the developers and the homebuyers, creating a more harmonious and secure real estate sector.
B. Importance of RERA Registration
Rera registration is of utmost importance for the real estate sector in India. This registration ensures that all real estate projects are transparent and accountable to the buyers, thereby increasing their confidence in the sector. Some of the key benefits of RERA registration include:
1. Protection of Homebuyers: RERA registration ensures that the interests of the homebuyers are protected. With strict regulations in place, developers cannot mislead buyers with false promises or changes in the project.
2. Accountability and Transparency: RERA registration ensures that all real estate projects are accountable and transparent. Developers must deposit 70% of the project money collected from homebuyers in bank accounts through cheques. This ensures proper documentation and accountability for every rupee spent and gained.
3. Professionalism in the Sector: RERA aims to implement pan-India standardization and bring about professionalism in the real estate sector. This will improve the quality of construction and the overall experience of buying a property.
4. Increase in Investor Confidence: The implementation of RERA is expected to increase investor confidence in the real estate sector, which is crucial for its growth.
Overall, RERA registration is necessary for the growth and development of the real estate sector in India, and homebuyers need to be vigilant in investing in only RERA-approved projects.
II. Applicability of RERA Registration
A. Who needs RERA Registration?
R registration is mandatory for anyone who wishes to construct or develop land or building for the purpose of sale. The following entities need to obtain RERA registration:
1. Promoters: This includes builders, developers, contractors, development bodies, or any other public body who constructs or develops land or building for sale. They need to register their real estate project with the respective state’s RERA authority. The registration applies to commercial buildings, residential apartments, and plot developed for sale, exceeding 500 sq. meters or having more than eight apartments.
2. Real Estate Agents: Real estate agents who are engaged in the sale and purchase of properties need RERA registration that remains valid throughout the state. They can be registered for a period of five years.
RERA registration helps bring transparency and accountability to real estate transactions, safeguards the interests of buyers and investors, and promotes good governance practices in the sector. It eliminates the chances of delay, fraud, and malpractices, creating a win-win situation for both promoters and consumers.
B. Types of real estate projects covered
RERA registration is mandatory for all real estate projects in India, regardless of whether a completion certificate has been issued or not. The RERA authority has jurisdiction over all projects that have not been registered or exempted from registration. The act covers various types of real estate projects, including residential, commercial, mixed-use, and plotted development projects.
The act distinguishes between ongoing projects, which have not received a completion certificate, and completed projects with unsold inventory. All ongoing projects must register with RERA, while completed projects with unsold inventory do not require prior registration. In addition, the act also covers projects with incomplete development work or unconstructed buildings that are part of the project.
Specifically, the RERA act categorizes real estate projects into four types:
1. Residential projects: This includes apartments, flats, houses, plots, or any other dwelling units.
2. Commercial projects: This covers offices, shops, showrooms, medical facilities, hotels, and malls.
3. Mixed-use projects: This category includes projects with both residential and commercial components, such as townships and integrated developments.
4. Plotted development projects: This covers the development of land in individual plots or clusters for residential, commercial, or institutional use.
Overall, the RERA act provides comprehensive coverage for all types of real estate projects in India, ensuring transparency, accountability, and protection for homebuyers and investors alike.
C. Criteria for RERA Registration
To be eligible for RERA registration, certain criteria must be met by real estate projects. The following are the key conditions that must be fulfilled before applying for RERA registration:
– The land area proposed for development must be more than 500 square meters or the number of apartments proposed to be developed must be more than eight units, inclusive of all phases.
– The real estate project must have a completion certificate or an occupation certificate before the registration.
– The promoter must disclose all information about the project, including the timeline for completion, carpet area of the units, details of the architects, engineers, contractors, and agents involved, and the total cost of the project.
– The promoter must open a separate bank account for the buyers’ money and must use the corpus for construction and land-related expenses only.
– The promoter must deposit 70% of the buyers’ money received in the separate account before commencing the project.
– The promoter must apply for RERA registration within three months of the implementation of the Act.
Fulfilling these criteria ensures that the real estate project is legitimate and transparent, protecting the interests of homebuyers.
III. Procedure for RERA Registration for Projects
A. Application process
Under RERA Act, it is mandatory for promoters to register their real estate project to sell, advertise, market, book or purchase. The application process for RERA registration for a project is fairly simple, and can be completed online. Promoters must make an application to the authority for registration. They must furnish various details, including their enterprise’s name, registered address, enterprise type, particulars of such enterprise, and photographs of the promoters. They must also provide details of their previous projects, whether completed or under development, the current status of the projects, and details of cases pending and payments pending. Promoters must provide an authenticated copy of approvals and a commencement certificate from the competent authority, along with a copy of the sanctioned plan, layout plan, and project specifications. RERA registration fees are different for promoters and agents, depending on the state and the type of project.
1. Registration forms
To RERA registration for a real estate project, promoters are required to submit an application to the authority. The registration forms can be obtained by requesting an application in the Form-A and Form-B to the authority. Once the application is submitted, the authority will grant registration within thirty days from the date of application submission. The promoter is required to furnish several important documents along with the application form such as details of the enterprise, details of the projects launched by the promoter in the past five years, copy of sanctioned plan and specifications, details of the persons involved with the development of the project, and many more. Furthermore, the applicant has to sign a declaration supported by an affidavit stating that the land has a legal title, the land is clear from all encumbrances, and details of the period of the project taken to complete the project. Providing all necessary documents and following the application process can help obtain RERA registration smoothly and efficiently.
2. Required documents
To obtain RERA registration for a real estate project, certain documents are needed to be furnished by the promoter or builder. These required documents include:
1. Particulars of registration along with bye-laws.
2. Self-certified copies of all letterheads.
3. Income Tax Returns information for the previous three years.
4. Self-certified copy of letterhead rubber stamp.
5. Audited balance sheet for the previous fiscal year.
6. Name, address, contact information, and an image of the promoter/director/partners/chairman, or any other authorized person, if any other entity exists.
7. Details on architectural and design standards, construction technology, earthquake-resistant measures, etc.
8. The real estate project’s floor plan.
9. Details about the encumbrances on the planned land where the real estate project will be carried out.
10. Details regarding the sub-judice processes about the proposed land for real estate project (if applicable).
11. The number of covered parking spaces.
12. Information on the proposed plan, the sanctioned plan, the floor space index, the layout plan, etc.
13. The number of wings or buildings proposed.
If a real estate agent wishes to register, they need to provide an acknowledgment for the previous three years. The listed documents ensure transparency in the real estate sector, providing homebuyers with accurate information about the properties they intend to buy. In case any information is found to be inaccurate, the promoter or builder may be liable to pay compensation to the affected party. Therefore, RERA registration ensures a higher degree of trust between buyers and builders, streamlining the real estate market.
B. Validity of registration
After the real estate project is registered, the registration is valid for a specific period declared by the Promoter. The validity of registration depends on the completion timeline declared by the promoter under section 4(2)(l)(c), keeping in view the provisions of section 5(3) of RERA. In case the Promoter fails to complete the project within the declared timeline, the registration may be extended by the Regulatory Authority for such further period as they deem fit.
Post-expiry of the validity of registration, various obligations of the Promoter must be ensured. These obligations include handing over possession of the property, executing a registered conveyance deed within a specified period, and rectification liability for any workmanship or structural defects for a period of up to five years after possession is given. It is the responsibility of the Regulatory Authority to ensure that the Promoter complies with all obligations, both during and after the registration phase.
The main objective of registration is to monitor the project from its commencement to completion, and to ensure that the amount collected from buyers is not diverted for other purposes. It also ensures that the layout, building plan, and specifications as approved by the competent authority are followed by the Promoter. Overall, the validity of registration plays a critical role in protecting the interests of both consumers and developers in the real estate sector.
IV. Benefits of RERA Registration
A. For consumers
RERA registration is a boon for homebuyers as it brings transparency and accountability to real estate transactions. The main benefit of RERA for consumers is the protection of their interests as the Act makes it mandatory for developers to disclose project details such as carpet area, completion date, etc. before marketing the property. RERA ensures timely delivery of projects as developers are liable to pay compensation to buyers for any delay in possession. Plus, with the establishment of the Real Estate Appellate Tribunal, buyers have a platform to address grievances and seek redressal. RERA registration ensures the availability of proper documentation and hence, reduces the risk of fraud. It promotes fair play and professionalism in the industry, resulting in more reliable investment opportunities. By promoting good governance practices, RERA is expected to bring significant ease in transactions for buyers, thereby increasing buyer confidence in the real estate sector.
B. For developers
For, RERA registration is vital as it not only ensures compliance with regulations but also gives credibility to their projects. Developers who register their real estate projects with RERA will be seen as trustworthy and reliable by potential buyers. The registration process requires builders to provide comprehensive information about their projects and their past track record which helps to build trust among homebuyers. Developers who do not register their projects with RERA may face penalties and fines which can adversely affect their reputation. With the implementation of RERA, it has become mandatory for developers to complete their projects on time as the Act penalizes them for delays. RERA also aims to bring standardization to the real estate sector, which will help improve investor confidence. Developers should ensure that they meet the prescribed criteria and submit all the required documents along with their application for RERA registration to avoid any complications.
V. Documents Required for RERA Registration
A. For promoter registration
In order for real estate developers, also known as promoters, to sell, advertise, market, book or purchase properties, it is mandatory for them to obtain RERA registration for their projects. Any person who constructs an independent building or a building consisting of apartments or modifies an existing structure into apartments to sell apartments to the persons, or who develops land into a project to sell projects to other persons, or any development authority or public body in respect of allottees of buildings or plots constructed by such authority or public body on who owns land or placed at their disposal by the government, must register with RERA. However, those whose area of land proposed for developing does not exceed 500 square meters or for those whose number of apartments developed does not exceed eight apartments including all the phases are exempted from registration. Those who have already received the completion certificate for a real estate project prior to the commencement of RERA are also exempted. Once registered, all information of the promoter including details of all projects launched by him/her in the past five years, authenticated copies of approvals and commencement certificates, layout plans, and specifications of the proposed project, must be submitted to RERA. The registration will be valid for a period declared by the promoter from the date of issue of the certificate of registration.
B. For real estate agent registration
Real estate agents play a crucial role in facilitating transactions between buyers and builders. They are required to maintain all records and documents of the promoters and their projects, and present them to buyers as and when required. Real estate agents must not misguide or advertise false facts about the projects to the general public. It is their responsibility to handle the hard-earned money of common people fairly. Agents need to compulsorily register themselves with the concerned state-level regulatory authorities. The process of RERA registration for agents involves making an application along with necessary documents and paying the registration fees. Once the registration is granted, a registration certificate is issued valid for 5 years, which can be renewed thereafter. Agents who fail to comply with the registration requirements are liable to face penalties or even imprisonment if associated with any unfair trade practices. RERA registration for agents enhances credibility among buyers and sellers and establishes professionalism in the real estate sector.
A. Summary of key points
To, the Real Estate (Regulation and Development) Act 2016 (RERA) is an act passed by the Indian parliament to regulate the real estate sector and protect the interests of home buyers. The act seeks to make real estate purchase simpler by bringing in better accountability and transparency, provided that states do not dilute the provisions and the spirit of the central act. RERA gives the Indian real estate industry its first regulator, and each state and union territory is required to form its own regulator and frame the rules that will govern the functioning of the regulator. The salient features of RERA include the requirement of registration of real estate projects with the Real Estate Regulatory Authority (RERA) and the registration of real estate agents. Real estate projects that are less than 500 square meters or involve no more than eight apartments, projects that have received completion certificates, and projects limited to renovation or repair or redevelopment are not required to be registered.
B. Future implications for the real estate sector
The of the Real Estate (Regulation and Development) Act 2016 (RERA) has brought a significant shift in the real estate sector in India. The Act aims to bring transparency and accountability to the sector, ensuring that developers comply with certain rules and regulations. This has made it mandatory for the builders and developers to carry out the RERA registration before starting a project. The Act has also established a fast dispute resolution process for consumers and buyers, providing a speedy redressal platform. With the rise of the real estate market, various issues have arisen over the years. The introduction of RERA is expected to bring regulation in the sector, ensuring that instances of fraud by builders are duly addressed and consumers are benefited. A more consumer-centric approach is being created, where relevance is given to timely completion of projects and timely possession being delivered to the consumers. The Act has paved the way for a more equitable and fair transaction between the buyer and the seller of properties, especially in the primary market.
VII. Documents required for Rera Registration for Projects in India
1. Proof of identity of the promoter, such as PAN card, Aadhaar card, passport, etc.
2. Proof of address of the promoter, such as electricity bill, telephone bill, lease agreement, etc.
3. Details of the project, including the location, size, layout, approvals, etc.
4. Copies of all legal documents related to the project, such as title deed, NOC, development agreement, etc.
5. Copies of all agreements with the buyers, such as sale agreement, construction agreement, etc.
6. Details of the finances of the project, such as bank account statements, funding sources, etc.
7. Details of the construction timeline, completion date, and expected possession date.
VIII. Advantages of Rera Registration for Projects in India:
1. Increased transparency and accountability in the real estate sector.
2. Increased confidence among buyers, leading to increased sales and investments.
3. Protection of buyers’ interests through clear regulations and timelines.
4. Reduction in project delays and cancellations.
5. Standardization of real estate contracts and practices.
6. Reduced risk of fraud and malpractice.
7. Better regulation of the real estate industry, leading to a more stable market.
IX. Disadvantages of Rera Registration for Projects in India:
1. Increased compliance costs for developers, which could increase the price of properties.
2. Increased paperwork and bureaucracy, leading to slower approvals and clearances.
3. Some developers may find it difficult to meet the strict regulations and requirements of RERA, leading to delays or cancellations.
4. Some buyers may find the increased transparency and regulations too restrictive, leading to limited options in terms of property choices.
X. Process of getting Rera Registration for Projects in India:
1. Register as a promoter on the State RERA website.
2. Fill in the application form with all the necessary details and documents.
3. Pay the required fees to the regulatory authority.
4. Wait for approval from the regulatory authority, which may involve site visits and inspections.
5. Once approved, the project will be given a RERA registration number, which must be displayed in all marketing materials and property documents.
XI. Types of Rera Registration for Projects in India:
1. RERA Registration for Real Estate Projects
2. RERA Registration for Real Estate Agents
3. RERA Registration for Real Estate Projects with Partial Completion
4. RERA Registration for Real Estate Projects under 500 Square Meters
XII. Frequently Asked Questions about Rera Registration for Projects in India
1. Who needs to register under RERA?
Promoters or builders who plan to construct residential or commercial properties over 500 square meters need to register under RERA.
2. Is it mandatory for each state to have a RERA?
Yes, each state is required by law to establish its own RERA regulatory agency.
3. What are the penalties for non-compliance with RERA regulations?
Non-compliance with RERA regulations can result in hefty fines, imprisonment, and cancellation of the project registration.
4. How does RERA benefit homebuyers?
RERA protects homebuyers by requiring developers to complete construction on time, provide clear property title, and maintain transparency in project finances. It also establishes a dispute resolution process for buyers in case of any grievances.
5. What is the validity of a RERA registration?
The validity of a RERA registration is the duration of the project, as specified in