{"id":8997,"date":"2020-02-15T08:30:15","date_gmt":"2020-02-15T03:00:15","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=8997"},"modified":"2020-12-18T15:22:54","modified_gmt":"2020-12-18T09:52:54","slug":"importance-of-rera-registration-in-real-estate","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/importance-of-rera-registration-in-real-estate\/","title":{"rendered":"Importance of RERA Registration in Real Estate"},"content":{"rendered":"\n<p>Real estate industry has undergone remarkable growth and development over the years. A sudden thrift was admitted in the real estate market after Real Estate (Regulation and Development Act), 2016 came into effect. The Act established the Real Estate Regulatory Authority (RERA) in each Indian state to monitor properties possession. It aims to safeguard the interests of home buyers and increase investments in the real estate. Real Estate Act obligates all residential and commercial builders to register under RERA to prompt transparency in marketing &amp; execution. This document constitutes the importance of RERA Registration in Real Estate. \u00a0<\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-background\" href=\"https:\/\/swaritadvisors.com\/rera-registration\" style=\"background-color:#01669c\">Apply Rera Registration for Builder, Promoters<\/a><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a8b365526c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a8b365526c\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/importance-of-rera-registration-in-real-estate\/#What_is_the_need_of_RERA_in_Indian_Real_estate\" title=\"What is the need of RERA in Indian Real estate?\">What is the need of RERA in Indian Real estate?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/importance-of-rera-registration-in-real-estate\/#Penalties_imposed_for_non-compliance_under_RERA\" title=\"Penalties imposed for non-compliance under RERA\">Penalties imposed for non-compliance under RERA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/importance-of-rera-registration-in-real-estate\/#Top_5_reasons_for_RERA_Registration\" title=\"Top 5 reasons for RERA Registration\">Top 5 reasons for RERA Registration<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/importance-of-rera-registration-in-real-estate\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_need_of_RERA_in_Indian_Real_estate\"><\/span>What is the need of RERA in Indian Real estate?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Real estate sector plays an essential role in bridging the gap between the ideal and an actual position of India\u2019s infrastructure. Despite that, it has always been unorganized with an absence of standardization and lack of sufficient consumer protection.<\/p>\n\n\n\n<p>Unprofessionalism has always been a constraint to the steady advancement of Real estate industry.&nbsp;Though the Customer Protection Act, 1986 was accessible to the consumers to report their grievances, they were never addressed. Thus, it becomes indispensable to have central legislation to bring standardization, uniformity and efficient consumer protection in Real estate sector.<\/p>\n\n\n\n<p>Subsequently, RERA came into the picture in 2016 with a mission to revamp the structure of Real estate for better. Here are some of the significant aspects that the Real Estate (Regulation and Development) Act seeks to accentuate<strong>:<\/strong><\/p>\n\n\n\n<ul><li><strong>Tightens security:<\/strong>Real Estate (Regulation and Development Act), 2016 tightens the rules on the use of investments done by the home buyers or investors. As per the Act, about 70% of the investors\u2019 and buyers\u2019 money shall be kept in a separate bank account. Moreover, it restricts the builders to use that money only for construction and land-related purposes. A builder cannot ask for an advance payment of more than 10% of the property\u2019s cost before signing the Sale Agreement.<\/li><li><strong>Higher transparency:<\/strong> When RERA took over the Real estate market, it compels all the builders to submit the valid documents of all their ongoing and future projects. The builders cannot make any amendments in the plans without the buyer\u2019s consent.<\/li><li><strong>Fair dealings:\u00a0<\/strong>RERA commands the builders to sell the properties in correspondence to the carpet area rather than on super built-up area. If a project gets delayed, then either the buyers will receive an entire refund of the money invested or they may choose to get monthly investment on their money.<\/li><li><strong>Supreme authorization:\u00a0 <\/strong>The <strong><a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/rera-registration\">importance of RERA Registration<\/a><\/strong> in Real Estate can be considered from the fact that no real estate agent\/builder can sell, build, advertise, book or invest a plot without RERA Registration. Once registered under RERA Act, the builders will get a unique project-specific Registration number for different projects.<\/li><li><strong>Quality Assurance:\u00a0<\/strong>Real Estate Regulatory Authority predominantly supports the buyer\u2019s interest. Thus, if a buyer feels dissatisfied from the quality or discovers any structural defects within five years of purchase, then the builder needs to rectify the issue within 30 days of the complaint.<\/li><\/ul>\n\n\n\n<div class=\"browse\">\n<p>Browse through our articles on services provided at <a href=\"https:\/\/swaritadvisors.com\">Swarit Advisors<\/a>, and just let us know if we can help you with your company registration or tax filing or trademark registration.<\/p>\n<div class=\"browse1\">\n<table class=\"table1\">\n<tbody>\n<tr>\n<td><span><a href=\"https:\/\/swaritadvisors.com\/private-limited-company-registration\">Register a Company<\/a><\/span><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/payroll-management\"><span>Payroll Management<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/msme-registration\"><span>MSME Registration<\/span><\/a><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/swaritadvisors.com\/limited-liability-partnership\"><span>LLP Registration<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/fssai-license\"><span>FSSAI Registration<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/trademark-registration\"><span>Trademark Registration<\/span><\/a><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/swaritadvisors.com\/partnership-firm-registration\"><span>Partnership Firm Registration<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/nidhi-company-registration\"><span>Nidhi Company Registration<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/shop-establishment-license\"><span>Shop &amp; Establishment License<\/span><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Penalties_imposed_for_non-compliance_under_RERA\"><\/span>Penalties imposed for non-compliance under RERA<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The builders, promoters or agents who disregard the importance of RERA License and do not oblige to the legal provisions have to bear hefty penalties. The following table depicts the offences and their consequent penalties under RERA Act:<\/p>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td>\n<p style=\"text-align: center;\">&nbsp;<strong>Offence <\/strong><\/p>\n<\/td><td>\n<p style=\"text-align: center;\"><strong>Penalty<\/strong><\/p>\n<\/td><\/tr><tr><td>\n<p style=\"text-align: center;\"><strong>PROMOTERS <\/strong><\/p>\n<\/td><\/tr><tr><td>\n<p>Non-Registration of a Real estate project<\/p>\n<\/td><td>\n<p>10% of the estimated project\u2019s cost<\/p>\n<\/td><\/tr><tr><td>\n<p>Violation of RERA laws<\/p>\n<\/td><td>\n<p>Either 10% of the estimated project\u2019s cost or imprisonment upto 3 years or&nbsp; both<\/p>\n<\/td><\/tr><tr><td>\n<p>Providing a false piece of information<\/p>\n<\/td><td>\n<p>5% of the estimated cost of the project<\/p>\n<p>&nbsp;<\/p>\n<\/td><\/tr><tr><td>\n<p>Non-compliance with RERA Act<\/p>\n<\/td><td>\n<p>Daily penalty of 5% of the approx. project\u2019s cost<\/p>\n<\/td><\/tr><tr><td>\n<p>Contravention of the orders of Appellate Tribunal<\/p>\n<\/td><td>\n<p>Imprisonment upto 3 years with or without fine that culminates about 5% of the estimated project\u2019s cost<\/p>\n<\/td><\/tr><tr><td>\n<p style=\"text-align: center;\"><strong>AGENTS <\/strong><\/p>\n<\/td><\/tr><tr><td>\n<p>Not registering a real-estate project<\/p>\n<\/td><td>\n<p>Rs.10,000 per day up to 5% of the approximate cost of the project<\/p>\n<\/td><\/tr><tr><td>\n<p>Contravention of RERA orders<\/p>\n<\/td><td>\n<p>Daily penalty of 5% of the estimated project value<\/p>\n<\/td><\/tr><tr><td>\n<p>Non-compliance with Appellate Tribunal<\/p>\n<\/td><td>\n<p>1 year of imprisonment or 10% of the project\u2019s estimated value or both<\/p>\n<\/td><\/tr><tr><td>\n<p style=\"text-align: center;\"><strong>ALLOTTEES\/BUYERS<\/strong><\/p>\n<\/td><\/tr><tr><td>\n<p>Violation of RERA orders<\/p>\n<\/td><td>\n<p>Daily penalty of 5% of the approximate project\u2019s cost<\/p>\n<p>&nbsp;<\/p>\n<\/td><\/tr><tr><td>\n<p>Contravention of the direction of Appellate Tribunal<\/p>\n<\/td><td>\n<p>10% of the approximate project\u2019s value or imprisonment of 1 year or both<\/p>\n<\/td><\/tr><\/tbody><\/table>\n\n\n\n<p>The list of penalties showcases the importance of RERA Registration in Real Estate to commence any business in Real estate sector. The only way to surpass the penalties is to adhere to the legal compliances of RERA Act.<\/p>\n\n\n\n<div class=\"shadow6\"><ul><li><a href=\"https:\/\/swaritadvisors.com\/learning\/rera-registration-fees-structure\/\">What is RERA Registration Fees in India?<\/a><\/li><li><a href=\"https:\/\/swaritadvisors.com\/learning\/documents-required-for-rera-registration-in-maharashtra\/\">Documents Required For RERA Registration in Maharashtra<\/a><\/li><li><a href=\"https:\/\/swaritadvisors.com\/learning\/customer-friendly-rera-encouraging-private-equity-investors\/\">Customer Friendly RERA Proving to be Encouraging for Private Equity Investors<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Top_5_reasons_for_RERA_Registration\"><\/span>Top 5 reasons for RERA Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>RERA is not only beneficial for home buyers, but it also avails numerous perks to real estate promoters and agents. It contributes a large part to underpin Real estate market and cultivate professional practices for builders as well as investors. Let\u2019s take a look at the advantages of RERA Registration and its importance:<\/p>\n\n\n\n<ol><li><strong>Builds customers trust<\/strong>&#8211; RERA Certification improves the credibility of the Promoter and real estate brokers. It acts as proof that a builder is complying with the provisions of RERA and helps to attract more prospective buyers.<\/li><li><strong>Flexibility- <\/strong>RERA enables the Promoters to select a date of project delivery as per their consent. Hence, it gives them the flexibility to execute the plan of action.<\/li><li><strong>Prevents insolvency-<\/strong> Since RERA has made it mandatory for the builder to maintain a separate Escrow account, so it prevents insufficiency of funds for future construction purposes.<\/li><li><strong>Raise the level of professionalism-<\/strong> Real Estate Regulatory Authority strengthens the foundation of Real estate sector. It encourages builders to attain long term goal with a professional outlook.<\/li><li><strong>Grievance Redressal-<\/strong> Another perk of RERA Registration is that the Promoter, broker or buyers can report their complaints in regards to any matter. Thereby, get a solution for the same.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<div class=\"shadow4\">The importance of RERA Registration in the Real estate industry is beyond evaluation. The entire sphere of Real estate revolves around the compliance and guidelines of RERA Act.<br><br>If you want to register under RERA, take legal assistance from Swarit Advisors. We can help in filing the online RERA Application, draft documents and provide project-based consultancy.<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Real estate industry has undergone remarkable growth and development over the years. A sudden thrift was admitted in the real estate market after Real Estate (Regulation and Development Act), 2016 came into effect. The Act established the Real Estate Regulatory Authority (RERA) in each Indian state to monitor properties possession. It aims to safeguard the [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":9001,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[561,539],"tags":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/8997"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=8997"}],"version-history":[{"count":13,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/8997\/revisions"}],"predecessor-version":[{"id":17985,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/8997\/revisions\/17985"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/9001"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=8997"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=8997"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=8997"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}