WHAT IS RERA REGISTRATION

INTRODUCTION

  • The Real Estate (Regulation and Development) Act, 2016 is an Act, which passed by the Parliament of India by the majority of Votes;
  • The RERA Registration is mandatory for Real Estate developer & agents;
  • This Bill passed by The “Rajya Sabha” on 10th March 2016 & also by “Lok Sabha” on 15th March 2016;
  • The RERA act comes into force on 1st May 2016 with 59 section out of 92 notified Section & remaining provisions related to RERA came into force on 1st May 2019;
  • To help in the protecting of Homebuyer interest in Real estate industry and helping them to boost there Investment by full Security of Interest;
  • The RERA act also established the Adjudicating Authority for speedy disposal of Customer & stakeholders disputes;
  • The Adjudicating Authority is executed on State level.

APPLICABILITY OF RERA REGISTRATION

The following person or companies are mandatory to get registration under RERA act of there respective state are:-

  • Real Estate Agents who provide the services related to Buying or Selling or Exchange of properties (ONE TIME REGISTRATION ONLY) or
  • Any repair or renovation in an existing building or structure that requires marketing, advertising and selling of an apartment or plot or
  • All commercial real estate project &
  • All Residential real estate project.

Where the size of the land exceeds 500 Square meters or 8 Apartments for launching a project, to provide transparency in project-marketing and execution.

 

BENEFITS OF RERA TO SOCIETY

  • Prohibition on Unaccounted Money/Black Money into Real Estate Sectors;
  • Compulsorily to Deposited 70% of the money in the Bank through Cheques;
  • The Builder has to quote a price based on Carpet area not on Super Built Area;
  • The Carpet Area Includes Usable Spaces like Toilet & Kitchen;
  • The Penalty on the Promoters to Misleads the Home Buyers;
  • There is Transparency in Execution, Pricing, Marketing, Product, Place & Built Area etc.;
  • Speedy Disposal of Homebuyer complains within the period of 60 days (Earlier 90 Days);
  • It also regulates the Real Estate agents in the RERA act;
  • All the Details related to projects mention or available on RERA website of respective State;
  • Online RERA portal for complaint against the Builder or Agents or Promoters or Companies or Person in Charge;
  • Penalty provisions against the Builder or Agents or Promoters or Companies or Person in Charge for the delay in delivery of Residential or Commercial Projects;
  • Any delay by the developer in completion of Project then he required to pay interest @ 2% P.a. above SBI Marginal Cost of leading rate to Buyer for Delayed period;
  • A builder has a responsibility up to the period of 5 years on any defect in the Building;
  • Developers cannot demand more than 10% of the property cost as advanced (Booking Amount) from the buyer before signing of registered sale agreement;
  • Without registration with RERA authority, the developers are not allowed to advertise, sell, offer, market or book any plot or apartment;
  • Any Shortcomings in the project then Buyer can contact developer within the period of 1 year from possession in writing.

DOCUMENTS FOR RERA REGISTRATION

Following documents required to enclosed in hardcopy with the application form:

  • PAN Card of the builder;
  • Income Tax Returns (ITRs) of the last 3 years;
  • The balance sheet of the builder of the last 3 years;
  • Full details of the Project (Plan layout or Built area or Area or Sanctioned Plans);
  • Builder provides detail clarification about the apartment (carpet area, floors, parking space);
  • Declaration & Documents of legal title of the land with proof (rights, title, mortgage);
  • In case, the builder is not the legal owner of the property or land then consent letter of the Legal owner with documental proof will be required;
  • Details Ownership documents like allotment letter or agreement of sale agreement);
  • Detail Information of the persons involved like Architects, Engineers and others.

LIST OF STATE WHERE RERA REGISTRATION IS APPLICABLE

For RERA registration in Any state visit This Link

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