RERA Registration

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OVERVIEW

RERA Registration

Buying a home is still a dream for many. The real estate industry has been under a scanner for a long period of time due to fake promises made by the promoters and real estate agents about the completion and delivery of the real estate property.

Due to these issues in the real estate industry, the government has introduced the Real Estate (Regulation & Development) Act, 2016 to resolve the problems faced by the buyer of the property. Real Estate Regulatory Authority (RERA) has been established under this Act to register and approve projects which are related to commercial and residential property and regulate the sale and purchase of the property.

BENEFITS

Benefits of RERA Registration:

1. Compliances with the law help in reducing fraud.
2. Increased transparency and accountability towards buyers of property.
3. Buyers get on-time delivery of the property.
4. The promoter can advertise only after registering the project with RERA.
5. Defect and deficiency correction even after the possession of the property is handed over.
6. Buyers can get accurate details of the project like the stage of completion, facilities, etc which cannot be altered.
7. Easy resolution by Dispute Resolution under the Act.

REQUIRED DOCUMENTS

Documents required RERA Registration

Following documents are required for promoter registration under RERA:

PAN of the promoter.
Parking on the property.
Property papers and in case the promoter is not the registered owner then consent from the owner, collaboration agreement, and other agreement if any is also required.
Encumbrance Certificate of the land.
Commencement Certificate of the project.
Layout plan and location details.
Details of older projects (launched in the last 5 years) by the promoters if any which includes the name of the project, status, any delay in completion, etc.
Registered Address.
Incorporation Certificate, MOA, AOA if any.
Audited financials, Audit Report, and Director Report for the last three years.
Complete details of promoters, directors, etc.

Following documents are required for real estate agent registration under RERA:

Photograph.
PAN Card.
Residence Proof.
Name of the enterprise, registered address, incorporation certificate, etc.
MOA, AOA, or other bylaws.

process

Process of Trust Registration in India

RERA Registration can be done for promoters and real estate agents. The RERA registration can be taken state-wise and such registration is applicable through that state. The documents are to be submitted online at the respective state’s website.

The process of registration is as follows:

The first step is to visit the website of the state in which registration is required.
Click on the Registration Tab.
Select the option for Promoter or Real Estate Agent or Buyer.
Fill in all the required details of the project and other required details.
Upload all the documents as mentioned.
Registration will be granted.

Time Required

The time required for the submission of the documents is 30 days.

FREQUENTLY ASKED QUESTIONS

Explore RERA Registration

1. What is the applicability of RERA Registration?

The RERA Registration is applicable in following cases: • It applies to promoter and real estate agent.
• It applies to commercial, residential and plot developed for sale.
• It applies to projects having more than 8 apartments or area exceeding 500 sq. mt.

2. What is the major condition on advertisement of any project?

The promoter can advertise the project only after its registration under RERA is done and registration number is also required to be mentioned.

3. What is the validity period of RERA Registration?

The Registration is valid for a period of 5 years from the date of registration.

4. Whether RERA Registration can be extended?

Yes, the RERA Registration can be extended in the event of natural disaster or a war.

5. What are the consequences if there is a default on part of agent?

The real estate agent may end up in losing the registration and can attract a penalty of Rs. 10,000 per day that may go up to 5% of the sale value.

6. How long the RERA Registration can be extended due to natural disaster or a war?

The maximum period of RERA Registration extension can be 1 year in the event of natural disaster or a war.

7. Whether the promoter and real estate agent need to register in each and every state they operate?

The promoter and real estate agent need to register in each and every state in which they operate in order to be compliant to the real estate law. This is due to the fact that the RERA law applies state wise.

8. What is mandatory for the promoter to sell the property?

The promoter needs to obtain necessary license and clearance from the government before he can sell even a single property.

9. What is the amount to be paid as booking amount and when it is required to be paid?

The booking amount is 10%. It needs to be paid after the sale agreement is registered.

10. Which projects are not covered under RERA?

The following projects are not covered under RERA: • Where the area covered under the project does not exceed 500 sq. mt.
• Number of apartments does not exceed 8.
• Renovation or redevelopment project which does not involve marketing, selling of new apartments.