Real Estate (Development and Regulation) Act Registration online

Register with RERA online. Steps to register, Benefits, Necessary Documents, procedure for registration and Penalties

 

What is Real Estate (Regulation and Development Act) 2016?

RERA is An Act to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, or sale of real estate project, in an efficient and transparent manner and to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto. The Act introduced for Ease of information between the Promoter and Purchaser, Transparency of contractual Conditions, Set minimum standards of accountability and A fast-track dispute resolution mechanism.

 

What are the Projects in which project RERA is applicable

Commercial and residential real estate, including plotted development.

All the residential and the commercial projects exceeding 500 square meters or more than 8 units/apartments

All the ongoing projects that have not received Completion Certificates will need to apply for RERA registration with the Regulator within 3 months.

Real estate agents who facilitate selling or purchase of properties under state law.

 

Validity of RERA Certificate and approval Process

RERA Registration certificate is valid for all over the state / UT.

Application for RERA registration must be approved or rejected within a period of 30 days from the date of an application made.

On successful RERA registration and approval from the authority, the promoter of the project will be provided with a unique registration number, a login id, and password for the applicants to update the necessary details about the company and project.

 

Objectives of RERA Registration

- Establishing a fast-track dispute resolution mechanism

- Ensuring accountability towards buyers and protect their interest

- Infusing transparency, ensure fair-play and reduce frauds & delays

- Ensuring the sale of real estate project, in an efficient and transparent manner

- Introducing professionalism and pan India standardization

- Establishing symmetry of information between the developer and buyer

- Imposing certain responsibilities on both developer and buyers

- Promoting good governance in the sector and create investor confidence

 

Benefits of Registering with RERA

 

Timely Possession of Property

The Act has provision to enforce on developers to ensure that construction runs on time and flats are delivered on decided time. In case if the builder is not able to deliver the flats on time, refund should be made to the purchaser with interest.



Project details cannot be changed

As per the Act the Builder cannot change a plan after Registration. There is a penalty of 10% of the Project cost or jail term up to three years, if a builder is found guilty.



Developer must get al clearances before selling Project
The Act ensures that developers get all the clearances before selling flats.



Defect in Structure should be repaired
If the buyer finds any structural deficiency in the development of the building, then it is the developer's responsibility to repair structural defects up to 5 years.



Builder cannot advertise Project without RERA Registration

Advertisement of project is not allowed without RERA Registration. It is compulsory to quote RERA registration number in every advertisement.



Booking Amount reduced to 10%

Booking amount to be paid by the buyer has been reduced from 20% to 10%, which should be paid only after registering the agreement for sale with the builder.

 

Termination of Agreement

Termination of the agreement is permitted only if the buyer defaults on payment thrice.

 

Notice period for Termination

Before terminating the agreement 15 days notice is to be given to the Buyer.

 

Documents Required to Register under RERA Act

 

Documents for Developer to Register a Project

1. Name, address, photograph and contact details in case of Individuals

2. In case of Non individuals details of chairman, partners, directors, and authorized person and details of an entity such as the type of entity, name and address of the entity.

3. Copy of PAN and Aadhar of promoter

4. Copy of approval obtained from the competent authority

5. Development Plan

6. Project details (location of the project, layout and sanctioned plan of the project)

7. Details of designing standards, construction technology type, resistant measures in case of the uncertain event and amenities/facilities in the layout plan.

8. Income Tax Returns (ITR) and audited financial statements of the past 3 years.

9. Title Deed along with the chain of title of Property

10. Documents of ownership such as proforma of the allotment letter, sale agreement, and conveyance deed.

11. Details of the architect, engineers, and others.

12. If the promoter is not the owner then consent detail of the owner along with the collaboration agreement, development agreement, joint development agreement, title deed or any other agreement entered into between the promoter and owner.

13. Any other document asked by the authority

 

Documents for Registration of Agent

- Name, address, contact details and photographs of individual/ partners/ directors

- Copy of PAN and Aadhar of the Real Estate Agent

- Copy of the address proof

 

Exempted Categories under RERA Act

As per section 3 of the RERA Act, RERA registration of projects is not necessary in the following cases:

- If the promoter has project completion certificate prior to the commencement of Act.

- The area of the proposed land does not exceed 500 sq. mt.

- Not more than 8 apartments

- Repair/renovation of an existing building without marketing, advertising, and selling.

 

Registration of Project under RERA Act

1. Convene board meeting to pass the board resolution in respect of the following:

i. Separate bank account opening to cover the cost of construction

ii. Filing of the RERA registration application

iii. Approval of the allotment letter, sale agreement, and sale deed
 

2. Obtain title search report in relation to proposed land

3. Obtain necessary licenses & NOC from the government authorities such as Fire Department, Airport Authority of India, National Highway Authority of India, National Authority Disaster Management Authority etc.

4. Collection of all the necessary documents for filing application in Form A

5. Filing of a RERA registration application with the respective state authority along with the prescribed fees 

 

RERA Registration Certificate

Registration certificate of the project is obtained in Form C as per section 5 of the Real Estate (Regulation and Development) Act, 2016.

 

Online Registration with RERA

Online Registration is available in Maharashtra, but in UP Registration was offline (Please check RERA office in states to confirm availability of online facility)

 

Registration Process of Real Estate agents

- RERA registration form will be filed along with fee and necessary documents.

- After filing of the application, you will receive a registration number from the regulator which must be mentioned in documents related to the sale of the property.

- Books of accounts, records and other transaction-related documents are required to be maintained on a quarterly basis.

- The Real Estate Agent have to give detailed information and documents regarding the project you entered with the buyer.

- While filing an application, you must be aware that the agent may be suspended in case of misrepresentation of facts or fraud at the time RERA registration.

 

Revocation of RERA Registration

RERA registration may be revoked if the prescribed compliances are not complied with.

RERA registration may be revoked by the authority on the basis of a complaint received or on suo moto basis by giving 30 days written a notice to the promoter. Such written notice may be given on the basis of the proposed revocation.

On receiving the notice, the promoter will give the show cause notice as to why the RERA registration should not be revoked by the authority.

After this, the authority will either allow the real estate project to be registered or cancel the RERA registration.

 

Grounds to issue show cause notice

- In case of default made by the promoter

- In case of the violation of the terms and conditions by the promoter

- If it is found that Promoter is indulged in unfair practice and in any fraudulent practices like misrepresentation / publication of any advertisement which are not intended to be offered;

 

Consequences of not registering with RERA

As per section 59 of the RERA Act, in case of non registration there is a penalty of up to 10% of the estimated project cost and in case of continuous default there will be an additional fine of up to 10% of the estimated project cost or 3 years imprisonment or both.

As per section 31 of the RERA Act, a complaint may be filed by the aggrieved person with the authority in case of violation of the RERA provisions by the promoter. There are wide powers entrusted with the authority in relation to non-compliance by the Promoter. Authority may levy a penalty or take the remedial measures/safeguards as may be deemed fit. On the case, to case basis, authority may grant interim order(s), refund of the amount received by the Promoter.