The Real Estate (Regulation and Development) Act, commonly known as RERA, was introduced by the Government of India in 2016 to enhance transparency and accountability in the real estate sector.
The Real Estate (Regulation and Development) Act, commonly known as RERA, was introduced by the Government of India in 2016 to enhance transparency and accountability in the real estate sector. RERA aims to protect buyers, promote fair practices, and ensure the timely completion of projects. The Act mandates that all real estate developers, promoters, and agents must secure RERA registration before initiating any project. This registration ensures adherence to statutory regulations and fosters trust between buyers and developers.
Requirements of RERA Registration
To be eligible for RERA registration, the following criteria must be met:
Applicability: The RERA Act applies to promoters, construction companies, and intermediaries involved in real estate transactions. Compliance with the RERA Act is mandatory for all parties involved in real estate projects.
Type of Project: Both residential and commercial projects require RERA registration. Projects that exceed 500 square meters or involve more than one building must adhere to RERA guidelines.
Structure of the Project: Projects must comply with RERA regulations, including adherence to structural norms and timely completion.
Registration with the Real Estate Regulatory Authority: Obtain a unique Identification Number (ID) from the Real Estate Regulatory Authority. This ID is essential for legal recognition and project validation.
Characteristics of RERA Registration
Key characteristics of RERA include:
Establishment of Regulatory Authority: Creation of a Real Estate Regulatory Authority to oversee and register real estate projects and agents.
Transparency: Ensures transparency between promoters and buyers, protecting the interests of buyers and securing sellers’ rights.
Disclosure Obligations: Promoters are required to disclose project details, plans, and any defects in the structure. They must also offer refunds in case of non-compliance.
Financial Transparency: Promoters must deposit at least 70% of the project cost in a separate account, which can only be used for the project’s construction.
Dispute Resolution: Provides mechanisms for fast-track dispute resolution and establishes a Real Estate Appellate Tribunal for appeals.
Penalties: Specifies penalties for non-compliance with regulations and unfair practices.
Advantages of RERA Registration
Benefits of RERA registration include:
Timely Project Completion: Ensures projects are completed within the promised time frame, with provisions for refunds if delays occur.
Protection Against False Promises: Guards against false claims of amenities and services by builders and promoters.
Regular Updates: Buyers receive regular updates on project progress and any potential delays or issues.
Complaint Resolution: Provides a platform for buyers, promoters, and agents to file complaints and seek resolutions.
Documents Required for RERA Registration
For Companies or Promoters:
Articles of Association and Memorandum of Association
Incorporation Certificate
PAN and TAN Card
Official Company Email
Company Identification Number
Business Address Proof
Prior Real Estate Experience
Details of Directors and Shareholders
For Individuals:
Name and PAN Card
Occupation and Proof of Address
Father’s Name
Income Tax Details
Official Website of the Promoter
Audited Balance Sheet
Income Tax Returns
Project Experience
Photographs
For Agents
State and District Registration Details
Tehsil Information
Bank Details
Name and Identity Proof
Father’s Name
Occupation
Auditor Balance Sheet and Income Tax Details
Process of RERA Registration
Visit the RERA Portal: Access the official RERA website for registration.
Create an Account: Register by creating a new account with an email ID and password.
Fill Out the Form: Provide details about the project and construction specifics.
Attach Documents: Upload the required documents with the application form.
Pay Fees: Pay the registration fees, which vary based on whether the project is residential or commercial.
Declaration: Submit a declaration affirming the accuracy of the provided information.
Verification: After verification, receive the RERA Registration Certificate.
Why Kickstart Business Advisors?
At Kickstart Business Advisors, we understand the complexities involved in RERA registration. Our expert team ensures a smooth and efficient registration process, guiding you through every step.
Expert Guidance: Our professionals offer comprehensive support and advice on RERA registration.
Efficient Processing: We handle the documentation, application, and follow-up, saving you time and effort.
Compliance Assurance: Ensure adherence to all RERA regulations with our expert assistance.
FAQs
What if a project needs to be registered in RERA?
Projects must be registered with RERA to ensure compliance with regulations and protect buyer interests.
What is the difference between RERA registered and RERA approved?
RERA registration indicates compliance with the Act’s requirements, while RERA approval confirms that the project meets all regulatory standards.
What are the requirements for RERA registration?
Requirements include detailed project information, financial disclosures, and adherence to RERA norms.
What if RERA registration is rejected?
If rejected, review and rectify the issues mentioned by the authority, and reapply.
Is it safe to buy a flat without RERA?
Buying a flat without RERA registration poses risks as it lacks regulatory oversight and buyer protection.
Can RERA cancel the project?
Yes, RERA can cancel a project if the promoter fails to comply with regulations or completes the project as promised.
What are the disadvantages of RERA for builders?
Builders may face increased compliance costs and stricter deadlines. However, RERA ensures transparency and trust.
What is Rule 4 of the RERA?
Rule 4 pertains to the registration process and the information required for registration, including project details and financial disclosures.
What is the RERA refund clause?
The RERA refund clause mandates that buyers receive a refund along with interest if the promoter fails to deliver the project on time or as promised.
How is RERA compensation calculated?
Compensation is calculated based on the delay period and the amount paid by the buyer, including interest as stipulated by RERA.
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