Overview

RERA was established in the year of 2016; it introduces Real Estate (Regulation & Development) Act 2016 to regulate & govern the real estate at the state level. Regulatory authorities are established at the state level, governing authority is responsible for

• Registration & other related approvals to register commercial & residential projects
• Regulating the sale & purchase contracts of the plot, apartments, buildings, etc. in the real estate sector

RERA registration ensures greater transparency & accountability by reducing the chances of frauds and delays that occur in these real estate contracts. RERA in order to benefit the interest of both, i.e. promoter & purchaser establish the following:

• Easy & transparent information sharing between seller & buyer
• Contracts are formed to ensure higher transparency
• Standards of accountability are set, which must be followed
• A dispute resolution mechanism has been put in place for speedy redressal of complaints.

Effects

RERA registration has several important effects on the real estate industries:

• Project cost has been increased
• The cost of capital has increased
• Liquidity in the hands of promoters remains

The introduction of the State Real Estate Regulatory Authority, along with the Real Estate Appellate Tribunal for speedy disposal of complaints related to the purchase of property, has positively affected the real estate sectors. Such a tribunal has the authority to entertain complaints and no other civil court or consumer forum will have any jurisdiction. RERA registration has set standards and grounds for speedy redressal of complaints.

Objective

Following are the main objectives of enforcement of RERA registration:

• Better transparency and accountability towards consumers to protect their interests
• Dispute Resolution Mechanism to resolve complaints
• Reducing fraud by increased compliance and ensuring fair play through fewer delays
• The real estate sector operates smoothly due to professionalism and standards
• With the imposed responsibilities on promoter as well as buyer, RERA leads to smooth & ease in transactions.
• It creates awareness by promoting good governance practices.

Applicability

The following is the applicability of RERA registration:

• This applies to promoters, projects and real estate agents.
• RERA registration is applicable to commercial, residential and plotted development.
• Earlier, the requirement of registration was essentially on projects of more than 500 sqm. Those with meters or more than eight apartments can now cover small projects (less than 500 square meters or eight apartments) within its scope.
• Real estate agents engaged in the sale and purchase of properties will obtain RERA registration certificate which is valid across the state.
• After successful registration under RERA, a Unique Identification Number (UIN), user ID and password are generated. The promoter can use the user ID and password to log in to their project to update the details.

Registration Process

RERA registration is a completely online process that can be done through its official website of RERA, which is different from state to state. For instance, the UP RERA website is https://www.up-rera.in/index.

Certain common documents for RERA registration in any state are as follows:

Documents Required From Promoter registration as a Company

• Registration Certificate
• Names of the Chairmen of the Governing Body / Partners / Directors
• Address of Chairmen of Governing Body / Partners / Directors
• Date of incorporation
• Photograph
• Address
• PAN Number
• Email ID
• CIN / TAN Number
• CIN / TAN copy
• Description of project experience, if any
• Audited balance sheet of the year of action
• Promoter's website
• Income tax return for last three years
• Previous project experience - if yes, details of last 5 years
•  Name Of Project
•  Status (Completion/under progress)
•  Pending Case If Yes- Case Name & Case Number

Documents Required For Promoter Registration Promoter/Builder as an Individual

• Name
• Father’s name
• Business
• Photograph
• Address
• Adhar Card
• Audited balance sheet of the year of action
• Promoter's website
• Income tax return for three years of proceedings
• PAN Number
• Email ID
• Description of project experience, if any

Documents / details required for real estate agent registration

• Name of the applicant
• Father’s name
• state
• District
• Tehsil
• Permanent Address
• Photograph
• PAN Number
• Email ID
• Registration fee (INR)
• Payment Date
• PNB Collection Date
• Bank Details:
• Directors' DSC

Property registration of real estate projects under RERA

Following are the advantages of getting RERA registered under the project:

• Timely execution of contract

  Before the start of RERA, producers make fake promises to deliver the project to the buyer on a certain date and rarely deliver on time. Thus, during project registration under RERA, the estimated date of completion of the project needs to be recorded, on which the project will be completed and distributed to the failing customers, which the promoters would be heavily penalized. is.

• Full Project Description

  At the time of applying for online RERA registration, the promoter needs to give accurate details of the project; right about starting from the construction stage to certain amenities & features provided in apartments or projects being executed which are prohibited from any alteration.

• Clearance through necessary authority

  Before RERA, buyers were falsely attracted to promoters’ various scheme, and those buyers have the least knowledge or are least bothered about such clearance purchase. Such promoter often later delays the execution of contract due to delays in getting government clearance. However, during project registration under RERA, clearance is made mandatory before selling even a single flat or house.

• Structural defects

  It is the developer’s responsibility to repair defects or deficiency which buyer may encounter after the purchase of property.

• Restricted Advertising

  Promoters are not allowed to advertise their projects without registering their project under RERA and must display their registration number in each advertisement.

• Booking amount

  The buyer has to pay 10% of the cost as booking amount only after the sale agreement is prepared and registered.