RERA Registration

What is RERA Act.?

RERA stands for Real Estate Regulatory Authority came into existence as per the Real Estate (Regulation and Development) Act, 2016 which aims to protect the home purchasers and also boosts the real estate investments. The bill of this Parliament of India Act was passed on 10 March 2016 by the Upper House (Rajya Sabha).

The RERA Act is implemented at the state level, and the authorities governing the act are responsible for below mentioned things:-

• Registration and related approvals for the registration under RERA of commercial properties and residential flats.
• Regulating the sale and purchase transactions of real estate properties.

Objectives

1. To protect the interest of the allottees and ensure their responsibility
2. To maintain transparency and reduce the chances of fraud
3. To implement Pan-India standardization and bring about professionalism
4. To enhance the flow of correct information between the home buyers and the sellers
5. To impose greater responsibilities on both the builders and the investors
6. To enhance the reliability of the sector and thereby increase confidence amongst the investors.
7. Provides the benefit and maintains the interest of the promoter and purchaser.

Benefits Under RERA Registration

1. RERA aims to reduce project delays and property fraud. To do so, authorities have made it mandatory for all builders/ developers to carry out RERA registration before they start a project.
2. Sub-section (1) of Section 3 of the Act makes it mandatory for all real estate projects to register with RERA^[24]for launching a project to provide greater transparency in project marketing and execution.^[23] For ongoing projects which have not received a completion certificate on the date of commencement of the Act, will have to seek registrations within 3 months.^[23]
3. Timely Possession: RERA was introduced to provide transparency and accountability towards the purchaser. RERA Registration helps the promoter in providing the estimated date of completion of the project and other related information. However, in case of failure, there will be huge penalties imposed on the promoter.
4. Clearance of Assured License:
5. Complaint Handling: All Complaints or disputes raised by buyers are directly entertained by RERA.

Documents required for RERA Registration

1. KYC of Promoters
2. Pan card, COI, MOA, AOA or Partnership deed
3. Audited Balance sheet last three years
4. Property Documents
5. Layout plan
6. Location Details of the project
7. ID Proof and Photograph of Applicant/Authorised signatory
8. Name and Status of project if any experience
9. Any delay in its completion

Procedure of Registration Under RERA Act

Step 1: Filling Application form to authority

Step 2: Submission of Requisite Documents

Step 3: Acceptance or Resubmission or Rejection: The authority will either accept or reject the application within 30 days of receipt of such application form.

Step 4: Issuance of Registration Certificate: RERA Authority issue the registration certificate after verification of documents.

Penalties under RERA Act

1. If the agent commits any default, he shall be liable for a penalty of Rs 10000 per day that can extend to 5% of the cost of the plot or building.
2. In case any unfair trade practices are conducted by the agent, he shall be liable for punishment by way of 1-year imprisonment.