RERA came into existence in the year 2016 and aims at protecting the rights of home buyers. It also helps in encouraging private equity investors by keeping a focus on...
Before we proceed to discuss RERA Registration for Real Estate Projects, it is necessary to know what is RERA? RERA stands for Real Estate Regulatory Authority. RERA acts as an adjudicating body or authority for resolution of real estate disputes.
If you have any concern about the RERA registration for real estate projects, then this blog will help you. So keep reading-
What is RERA Registration?
RERA registration is compulsory for every real estate project and the person associated with real estate matter. The Real Estate (Regulation and Development) Act 2016 or RERA Act came into force on 1st May 2016. This Act proposed to establish the Real Estate Regulatory Authority in every state of India. The purpose of such an establishment is to regulate the real estate sector. The primary aim of the Real Estate Regulatory Authority is to promote the real estate sector and to solve all Real Estate Disputes. Real Estate Regulatory Authority recommends the Government with regard to developments and promotions of the real estate sector.
Functions of RERA
As per provision of the The Real Estate (Regulation and Development) Act 2016, RERA is entrusted with various functions such as :
- RERA is entrusted with regulation and registration of real estate projects and real estate agents.
- RERA is required to publish and maintain records of all registered real estate projects.
- RERA must maintain a database of all registered real estate agents.
- RERA requires to fix appropriate regulations for each area falls under its
- RERA monitors compliance of the obligations cast upon the promoters, allottees, and real estate agents.
- Last but not least, RERA authority makes recommendations to the appropriate government for the purpose of growth and promotion of a healthy, competitive real-estate sector.
Applicability of RERA Registration
The RERA Registration is applicable to:
2) Real estate Projects
3) Real estate agents
However, in this blog, we will focus on RERA registration for Real estate Projects
Registration of Real Estate Projects under RERA Act
In simple words, real estate project means land which is meant for selling to make various developments on such land. As per Real Estate (Regulation and Development) Act 2016, every builder and promoters of the Real Estate Projects are bound to take registration for their Real estate projects. Conditions prescribed under the RERA Act for Registration of real estate project are discussed below:
- A promoter of the real estate project is not permitted to promote the project until it gets registration.
- If the real estate project is developed in different phases, then it is necessary for the project developer to obtain a separate registration for each phase.
- The project developer has to deposit 70% of the total amount received from the customers.
- The real estate project which is measuring more than 500 square meters or above than eight, apartments must be registered with the RERA.
Circumstances where Real Estate Projects are exempted from RERA Registration
In certain circumstances it is not necessary to register Real Estate projects.
- When the promoter had the project completion certificate prior to the act came into force;
- In case, the land does not exceed 500 square meters;
- If the project doesn’t hold more than eight apartments.
Process for Registration of Real Estate Projects under RERA Act
According to the rules and regulations of The Real Estate (Regulation and Development) Act 2016, every real estate project has to get registered under RERA. Real estate projects registration process is given below:
Filing of application form
Applicant/promoter requires to file an application form (FORM-A) with RERA.
Submission of Documents and fees
After filing of the application form, the applicant has to submit the necessary documents and fees as prescribed under the Act, 2016.
Grant of registration
Upon receipt of the registration application, within thirty days from the date of submission of application, the concerned authority/RERA will grant registration to the applicant. The authority will issue registration number, Login ID and password to the applicant to access the website. In this website, the applicant will create his own page. In addition, he needs to fill the project details completely. Authority can reject the application, if it finds that application does not fulfill the necessary criteria of the provisions of the Act, 2016. Authority will inform the application for the reason for such rejection. In case, the Authority either fails to grant the registration or reject the application within the prescribed time, then the project will be considered to be registered.
The validity of the RERA registration
As per section 5 of the RERA Act, registration of real estate project is valid for such period as mentioned by the promoter in the registration application. However, if the promoter wants to extend the time limit, then he can do so by filing an application in this regard.
Cancellation of RERA Registration
Registration granted to real estate projects can be rejected at any time. According to the rules and regulations of the RERA Act, Competent Authority either suo moto or on the basis of a complaint can cancel the registration. On the following ground registration shall be canceled:
- Where it finds that the promoter is default in doing anything as required under the RERA Act.
- In case promoter violates the terms and conditions of the approval.
- If authority finds involvement of promoter in any illegal and unfair practice.
Registration can be cancelled after giving 30 days notice to the promoter. In that notice competent authority has to mention the reason for such
Documents required for Real Estate Projects registration under RERA Act
Documents required for Registration of Real Estate Projects under RERA Act differs from state to state. The list of the necessary documents is given below:
- Details of the project;
- Name and address of the promoter or promoters;
- PAN card and Aadhar copy of the promoter or promoters;
- Details of the project;
- Project approval certificate;
- Copy of the development plan;
- Proof of the Ownership of the land (Sale agreement, allotment letter, etc).
Levy of penalty for non-compliance of the Registration
Under The Real Estate (Regulation and Development) Act 2016, there is a provision for imposition of a penalty on the promoter. As per the provision of the Act,2016, where a promoter fails to comply with the provision of the registration, then a penalty of 10% of the project cost will impose on that promoter. The penalty for the imprisonment up to 3 years can be imposed on the promoter.
The RERA Act protects the home buyers and promotes the concept of Real Estate in India. Furthermore, it protects the consumers’ interest in the real estate sector. RERA Act seeks to make provision for better development in a real estate matter. RERA registration is mandatory for real estate agents, promoters, real estate projects. RERA registration establishes a good relationship between the property seller and the property buyer. Swarit Advisors provides the best service in a matter of various registration. Get in touch with us and remain updated about RERA registration.