RERA Registration for Promoters
RERA stands for Real Estate Regulation Authority which is established under the Real Estate (Regulation and Development) Act of 2016. RERA’s purpose is to address the concerns raised by the homebuyers, stakeholders, agents/brokers and builders of the real estate industry. The responsibility of the Authorities here are:
- Regulating real estate property transactions.
- Governing registration and approvals of flats and properties.
Registration under RERA is all about bringing transparency and holding accountable the persons responsible for causing discrepancies in the real estate sector. Let us look in depth about RERA Registration.
Objectives of RERA Registration
- To create awareness by promoting the practices under RERA.
- To smoothen the transactions due.
- To bring in professionalism and standardization for effective running of operations.
- Reduce delays caused.
- Resolve grievances by establishing dispute resolution Tribunal.
- Reduces frauds.
- Create more transparency between homebuyers and promoters/agents.
Applicability
- Types of Properties
The Registration applies to residential apartments, commercial buildings, and plot for sale.
- Area
The Area for registration of the real estate project should be exceeding 500 sq. meters. or such apartments consisting of more than 8 floors.
- Parties
It applies to promoters and real estate agents who construct or develop land, apartments and/ or buildings.
RERA Registration and Documents required
The Registration process is online and the respective persons can apply for it from the official website of the particular state in which the registration is needed. This process varies from state to state but the documents submitted along with the application to the Authority remains same.
- Every Real Estate Promoter or Agent needs to fill an application for registering themselves in that particular state. The Application has to be submitted along with the documents required and fees as mentioned by the laws.
- The RERA authorities will then assess the application applied for. If there are no discrepancies then the application will be accepted or else it will be rejected, although the applicant will be given an opportunity of being heard.
The authorities issue the RERA registration number, along with the respective certificate within 30 days-time period.
Following are the Documents required for Promoters:
- PAN Card
- Legal title deeds
- Encumbrance Certificate
- Commencement Certificate
- Sanction plan, layout plan a location detail
- Plan of development to be executed in the project
- Details of previous projects
- Name of the project
- Status of the project
- Any delay in completion
- Pending case if any
Cases wherein Promoter is an enterprise then additional documents will be required:
- Name, address and type of enterprise.
- Registration Certificate, Articles of Association, Memorandum of Association along with Date of incorporation.
- Audited balance sheet of the enterprise for the last 3 years.
- Name, address, contact details and photographs of director/chairman and/or any other authorized person.
Cases wherein the Promoter does not own the land upon which the project is proposed, following documents are required:
- Consent of the owner
- Collaboration Agreement
- Title deed
- Joint Development Agreement
Advantages of Registration
- Assurance of license clearance
The Promoter can not sell even a single unit of the project without procuring the requisite licenses.
- Repair of Defects
It is the responsibility of the Promoter to make payments for outgoing expenses of water and electricity until the possession is handed over to the buyer. Any repair/fixing defects responsibility lies in the hands of the promoter if occurs within the span of 5 years from the date of possession.
- Awareness about payment
The buyer is required to pay the 10% booking amount only after the registration of the sale agreement.
- Limited advertisement
The Promoters are required to register their projects under RERA only after which they can advertise about the project. Also, it should be noted that the advertisement must display the registration number of the project.
- Accurate details of the Project
The Promoter must provide accurate and up-to date details of the project at very stage to be posted at the RERA website.
Projects that do not require registration?
- When the area of the land does not exceed 500 square meters or the number of apartments is not more than eight
- If the Promoter has obtained a completion certificate for the project before the commencement of the RERA Act.
- Where the work is restricted to
Renovation, repair, redevelopment
Does not include selling, marketing, advertising, or any new allotment of any plot, building or apartment.
Can registration be revoked?
Yes, if a complaint has been registered with the RERA authorities against any promoter or agent and it is found that they are not complying with the rules and regulations laid down in Real Estate Act then their registration can be revoked.
Sources:
https://corpbiz.io/rera-registration
https://cleartax.in/s/rera-registration
https://www.e-startupindia.com/rera-registration.html
https://www.99acres.com/articles/home-warranty-under-rera-all-you-need-to-know.html
https://www.registrationwala.com/rera-registration
