RERA (Real Estate (Regulation and Development) Act, 2016) is a law enacted by the Indian government to regulate the real estate sector in India. It aims to ensure transparency, accountability, and efficiency in the real estate market, providing a regulatory framework for real estate developers, brokers, and buyers.
Under RERA, real estate developers must register their projects with the respective state RERA authorities before advertising, marketing, or selling properties. This has become a mandatory step for builders and developers to ensure compliance with the law and protect the interests of homebuyers.
Key Objectives of RERA
▶ Transparency:
Ensures that builders and developers provide clear and authentic details about the project, including timelines, approvals, and possession dates.
▶ Accountability:
Developers are held accountable for delivering projects on time and as per the promised specifications.
▶ Consumer Protection:
Protects the interests of homebuyers by offering legal recourse if the developer fails to meet the promised terms.
▶ Promotes Competitiveness:
Encourages fair play and professionalism in the real estate industry
Who Needs to Register Under RERA?
▶ Real Estate Developers:
Any developer or builder offering a project for sale, including residential, commercial, or mixed-use developments.
▶ Real Estate Agents/Brokers:
Brokers who wish to engage in property transactions must also register under RERA.
▶ Homebuyers:
While homebuyers do not need to register under RERA, they are beneficiaries of the regulatory framework, ensuring that their rights are protected.
Benefits of RERA Registration
▶ Legal Protection for Buyers:
Buyers can file complaints and seek compensation if the builder delays delivery or provides substandard work.
▶ Transparency in Transactions:
Builders must provide clear and accurate project details, including possession dates, approvals, and financial information.
▶ Timely Delivery:
Developers are bound to deliver projects within the committed time frame, failing which they must compensate the buyers.
▶ Clear Title of Property:
Developers must prove that they have legal ownership of the land, ensuring that buyers do not face issues with the title of the property.
▶ Defects Liability:
Developers are liable to fix defects in the property within a period of 5 years from the date of possession.
RERA Registration Process
Fill out the RERA registration form online through the respective state’s RERA portal.
Submit all the required documents.
▶ Step 2: Payment of Fees:
Pay the prescribed registration fees, which vary from state to state.
▶ Step 3: Acknowledgment of Application:
Once the application and documents are reviewed, an acknowledgment receipt is issued by the RERA authority.
▶ Step 4: Review & Approval:
The state RERA authority reviews the application and documents. If everything is in order, the project is registered and a RERA Registration Number is issued.
▶ Step 5: Project Launch:
After registration, developers are allowed to launch and advertise the project with the RERA registration number.
RERA Compliance for Developers
▶ Project Details:
Developers must upload all project details on the state RERA portal, which must be regularly updated.
▶ Timely Delivery:
Developers must ensure that projects are completed within the promised time frame. Any delay must be communicated and compensation must be provided.
▶ Defects Liability:
Developers are responsible for rectifying defects in the property within 5 years of possession.
▶ Advertising:
Any advertisement regarding the project must include the RERA registration number.
Documents Required for RERA (Real Estate Regulatory Authority) Registration
- Certificate of Incorporation (for companies/LLPs).
- PAN Card of the company/firm.
- GST Registration Certificate.
- Title Deed of the land or project.
- Project Plan (including approval from local authorities).
- Power of Attorney (for authorized representatives).
- Project Details (location, land area, type of project).
- Photographs of the Project Site (if applicable).
- Bank Account Statement (of the developer).