Need for RERA Registration

RERA Registration is important for builders, developers, and real estate agents involved in projects that exceed 500 square meters or involve the construction of more than eight apartments. Here's why RERA Registration is necessary:

1. Transparency:
   Builders registered under RERA are required to keep homebuyers informed about the project's status, approvals, and delivery timelines. This transparency helps to build trust between the developer and the buyer, ensuring that progress reports are regularly updated.
2. Accountability:
   Under RERA Registration, developers are accountable for the commitments made at the time of project launch. If any deviation occurs, buyers have the right to seek legal recourse. Additionally, brokers and real estate agents are also bound by these laws, ensuring their accountability.
3. Uniformity:
   The RERA Act provides a standardized framework applicable across India, but its implementation is state-specific. While registration processes and compliance requirements may vary, all states operate under the same guiding principles, thereby maintaining uniformity.

Objectives of RERA Registration

The primary objectives of RERA Registration include:

1. Ensuring Security:
   To protect homebuyers' investments, RERA mandates that 70% of the money collected from buyers be kept in a separate account. This amount can only be used for the project's construction and land costs, significantly reducing the risk of funds being misappropriated.
2. Quality Assurance:
   Developers are responsible for any structural defects found within 5 years of possession. If issues arise, the builder must rectify them at no extra cost. Failure to do so may result in penalties, ensuring that quality standards are met.
3. Boosting Real Estate Investment:
   By offering a secure and transparent regulatory environment, RERA has increased investor confidence, promoting more investments in the sector. Buyers and investors can now make informed decisions, knowing that their rights are protected.
4. Transparency and Accountability:
   RERA mandates that developers disclose every detail of the project, from land status to approvals and project plans. Buyers are no longer kept in the dark, and developers are held accountable for their promises.
5. Grievance Redressal:
   RERA has established mechanisms to resolve disputes between buyers and developers. If a buyer is dissatisfied with the RERA Authority's decision, they can approach the Appellate Tribunal for further redressal.
6. Imposing Compliance:
   RERA implements strict compliance requirements on all real estate stakeholders. Developers, agents, and brokers must adhere to the regulations, failing which severe penalties can be imposed.

Impact of RERA Registration

RERA has revolutionized the real estate sector by:

1. Providing Right to Information:
   Buyers are entitled to comprehensive details about the project, ensuring they make informed decisions.
2. Charging Only for Carpet Area:
   Builders can only charge for the carpet area, not for balconies, lobbies, or parking spaces, preventing hidden costs.
3. Separate Bank Accounts:
   Developers must maintain a separate bank account for 70% of the project funds, ensuring they are used only for construction and land expenses.
4. Penalty for Project Delays:
   If a developer fails to deliver the project on time, they are liable to pay interest on the amount to the buyer.
5. Advance Payment Limit:
   Developers cannot take more than 10% of the property's cost as an advance without a sale agreement.
6. Consent for Project Alterations:
   Developers must seek approval from 2/3 of the project's buyers before making any structural changes.

Benefits of RERA Registration

The benefits of RERA Registration extend to buyers, developers, and agents, bringing professionalism and reliability to the real estate sector:

1. Timely Completion of Projects:
   RERA ensures that projects are completed as per the given timeline. If developers fail to adhere to this, they face heavy penalties, thus incentivizing on-time delivery.
2. Defined Project Plan:
   Developers must adhere to the original plan presented to buyers and cannot make alterations without their consent. If changes are necessary, approval from at least two-thirds of the project's allottees is required.
3. Structural Integrity:
   Builders are liable for any structural defects detected within five years of handover. This provision safeguards buyers and emphasizes the importance of delivering high-quality construction.
4. Mandatory Licenses and Clearances:
   Developers must get all necessary approvals and licenses before promoting their projects. This requirement helps avoid project delays and ensures legal compliance.
5. Advertisement and Promotion:
   Developers cannot advertise or promote their projects without obtaining RERA Registration. Furthermore, all promotional materials must include the RERA Registration number, enhancing transparency.
6. Professionalism and Standardization:
   RERA has introduced a professional approach to the real estate sector. With clear guidelines and penalties for non-compliance, developers are compelled to follow ethical business practices.
7. Grievance Redressal:
   RERA provides a platform for buyers, agents, and developers to lodge complaints. If any stakeholder is dissatisfied with the RERA Authority's decision, they can escalate the matter to the Appellate Tribunal.

Eligibility for RERA Registration

RERA Registration is mandatory for:

• Developers/Promoters: Individuals or companies engaged in constructing buildings, houses, flats, or plots for residential or commercial purposes.
• Real Estate Agents: Brokers and agents facilitating the sale or purchase of real estate properties must register with RERA.

Documents Required for RERA Registration

For Promoters/Companies:

• Memorandum of Association (MoA) and Articles of Association (AoA)
• Company Registration Certificate (Certificate of Incorporation)
• Business address proof
• Company PAN and TAN
• Details of directors and shareholders
• Previous real estate project experience
• Project details, including layout plan, location, and sanction plan

For Individual Promoters/Builders:

• PAN Card and Residential Proof
• Income tax details and audited balance sheets
• Passport-size photographs
• Email ID and contact information
• Information on previous projects

For Real Estate Agents:

• Agent’s name, PAN Card, and address proof
• Digital Signature Certificate
• Registration fee payment receipt
• Details of the agent’s district and state of operation
• Occupation and income tax details

Procedure for RERA Registration

The RERA Registration process is state-specific and generally involves:

1. Visiting the official RERA website of the respective state.
2. Filling out the online application form and attaching the required documents.
3. Making the prescribed fee payment.
4. Submitting a declaration form and other necessary information.
5. Receiving a RERA Registration number after verification.

Penalties under RERA Act

Non-compliance with RERA regulations results in severe penalties:

• Buyers: If buyers violate RERA rules, they may be fined up to 5% of the project's cost.
• Promoters: Unregistered promoters can face a penalty of up to 10% of the project cost. Misleading information or violation of norms can result in imprisonment or fines.
• Agents: Agents operating without RERA Registration face fines of ?10,000 per day and may also be penalized for non-compliance.

Our Support

Compliance Calendar LLP offers expert guidance for a smooth RERA Registration process. Our services include:

• Expert Consultation: Our professionals provide personalized support and address all your queries regarding RERA Registration.
• Document Preparation: We assist in gathering and preparing all the necessary documents in the prescribed format.
• Hassle-Free Filing: Our team ensures your application is submitted without errors, minimizing delays.
• Quick Processing: We advance the registration process, ensuring minimal waiting time.
• Compliance Support: From obtaining licenses to managing ongoing compliance, we cover all aspects of RERA Registration.