What is RERA Registration Fees in India?
The Real Estate sector dominates the growth of India’s economy with up to 11 % contribution to the GDP. Any lapse in the industry of Real Estate can majorly affect the whole nation. Therefore, the Government has implemented a RERA license to regulate this sector. As per RERA effect, all the intermediaries must register and retain a valid license before commencing any real estate dealings. If you are wondering about the RERA registration fees, then you are on the right platform. This blog will provide you with extensive knowledge about RERA registration.
What is the need of RERA License?
India is a hub of Real Estate Agents and Property Dealers with over 5 lakh to 9 lakh brokers present today. Such agents play a vital role to bridge the gap between builders and buyers; thereby, they act as an intermediary between them. Besides, in recent years many cases of treason and negligence were reported against builders and Real Estate Agents. Considering the unregulated functioning of brokers, the Central Government releases the Real Estate Regulation and Development Act, in 2016. Moreover, the primary focus of the Real Estate Regulatory Authority is to protect the interest of home-buyers and boost the development of the Real Estate sector.
Chief Guidelines under RERA ACT
Every Real Estate builder or agent who has paid RERA registration fees must keep these things in mind:
Quality: As per the RERA Act, 2016, a builder must resolve any concerns of the buyer within five years of his purchase. Further, the builder has a period of 30 days to rectify the issue from the date of the complaint.
Transparency in plans: There is no scope for deception under RERA registration. The builders have to submit all original documents for the project they undertake. Moreover, the builders do not have the right to make any changes in their plans without the consent of the buyer.
Tight Security: According to RERA Act, a minimum of 70% of the buyers’ money shall be kept in a separate account. Further, the builders can access to the buyer’s money only for land and construction-related expenses. Real Estate developers and builders cannot demand more than 10% of the property’s cost as an advance payment before the customer has signed the sale agreement.
Authorization: A builder cannot sell, advertise, invest, build, or book a plot without registering with the Real Estate Regulatory Authority. Also, after registration, he has to ensure that all the advertisement for investments must possess a unique project number given by RERA.
Fairness and Integrity: Every builder registered under RERA Act can sell properties on the basis of the carpet area and not on the super built-up area. If there is any delay in the project, buyers get entitled to receive their entire money invested, or they can choose to receive monthly investment on their money.
Penalties for Non-Compliance with RERA
Any Real Estate Agent or builder who fails to compel with the RERA Act, 2016 has to bear severe repercussions. He may also have to pay heavy RERA license fees along with penalties. Have a look at the different kind of offences and penalties prescribed for them:
|Section 59||Not registering a project||Pay 10% of the estimated cost of real estate project|
|Section 59||Not obeying orders in regards to the above offence||The defaulter has to bear imprisonment of up to 3 years with or without paying a fine 10% of the estimated cost of the real estate project|
|Section 60||Providing incorrect information||Pay 5% of estimated cost of the real estate project|
|Section 61||Violation of any order of the RERA||Pay an everyday penalty that may extend up to 5% of estimated cost of the real estate project|
|Section 64||Violation of the orders or direction of the appellate tribunal||Imprisonment of up to 3 years with or without fine that may cumulatively extend to 5% of estimated cost of the real estate project.|
|Section 62||Contravention of the applicable provisions of the RERA Act||The defaulter has to pay Rs. 10,000 per day that may further extend up to 5% of the cost of the property|
|Section 65||Contravention of the direction or orders of the RERA||Pay penalty daily which may cumulatively extend up to 5% of estimated cost of the property whose purchase or sale was facilitated|
|Section 66||Violation of the orders or direction of the appellate tribunal||Imprisonment of up to 1 year with or without paying the fine that may extend up to 10% of the estimated cost of the project|
Decoding RERA Registration Fees for Real Estate Agents
The fee structure of RERA registration varies from state to state. However, here is an estimated RERA registration fees:
- The Real Estate Agent has to pay a registration fee of Rs 10,000 if he is an individual or owns proprietorship firm.
- While, in case of Partnership firm, One Person Company, LLP, Private Limited Company, Society, Public Limited Company, the applicant has to pay Rs 1,00,000.
- A real estate agent, who has been registered under Section 9, can apply for renewal of his license. For license renewal, he must fill a “Form J” at least sixty days before the expiry of the registration. Thereby he must pay an amount of Rs 10,000 in case of being an individual or Rs 1,00,000 other cases.
Documents Required For RERA Registration
The applicant must affix a hard-copy of these documents along with the RERA application:
- PAN Card of the Real Estate Agent or the builder
- A clarification about the apartment such as the number of floors, carpet area, parking space, etc.
- Builder’s declaration and proof of having the legal title of the land
- The balance sheet and ITR of the last three years of the builder
- Comprehensive details of the property like rights, title, or mortgage.
- Key details of the project, such as sanctioned plan, location, layout plan, and so forth.
- Ownership documents (allotment letter, agreement of sale)
- Information of the involved parties other than builder (Engineers, Architects, and others)
- In case, the builder is not the actual owner of the land; then he has to submit a consent letter of the actual owner along with necessary documents.
Also read : –
- Customer Friendly RERA Proving to be Encouraging for Private Equity Investors
- RERA Registration for Real Estate Projects
RERA Registration Procedure for Real Estate Agents
Follow these simple steps to procure RERA license:
- Firstly, the applicant needs to file an application form along with fee and documents to get registered under RERA Act.
- After that, you will get a registration number from the regulator. Also, mention that number in every property sale.
- Maintain the books of account, documents, and records related to all the transactions every quarter.
- Share detailed information about the project and provide valid documents to the buyer.
- There is a possibility that an agent gets suspended if he misrepresents or commits any fraud during the registration process.