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RERA Registration Easy & Simple

We are pioneer and one among the nation’s eminent firms offering compliance, advisory, and professional services under The Real Estate (Regulation and Development) Act 2016 (RERA).

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what is RERA ACT: ALL ABOUT REAL ESTATE REGULATORY AUTHORITY REGISTRATION AND APPROVALS?

The real estate sector plays a catalytic role in fulfilling the need and demand for housing and infrastructure in the country. While this sector has grown significantly in recent years, it has been largely unregulated, with the absence of professionalism and standardization and a lack of adequate consumer protection. Though the consumer protection Act, of 1986 is available as a forum for buyers in the real estate market, the recourse is only curative and is not adequate to address all the concerns of buyers and promoters in that sector. The lack of standardization has been a constraint to the healthy and orderly growth of the industry. Therefore, the need for regulating the sector has been emphasized in various forums.

WHY RERA ACT COME INTO FORCE?

 

An Act to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure the sale of plots, apartments, or buildings, as the case may be, or the sale of real estate projects, efficiently and transparently and to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressed and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith or incidental thereto.

To protect homebuyers:

The primary objective of RERA is to protect the interests of homebuyers by ensuring that real estate projects are completed on time, and buyers get what they were promised. The act aims to make developers accountable for project delays, quality of construction, and other issues that affect homebuyers.

To promote fair practices:

RERA prohibits developers from making false promises and engaging in unfair practices such as changing the layout of the project without consent from the homebuyers. It also requires developers to obtain all necessary approvals before launching a project and to maintain a separate account for each project to ensure that the funds are used for that project only.

To bring transparency:

RERA aims to bring transparency to the real estate sector by requiring developers to register their projects and disclose all relevant information about the project on the RERA website. This includes details such as the developer's credentials, project approvals, construction progress, and the price of the units.

To promote the growth of the real estate sector:

By bringing transparency and accountability to the real estate sector, RERA aims to increase the confidence of homebuyers and attract more investment into the sector. This, in turn, can promote the growth of the real estate sector and create more job opportunities.

HOW IS LIABLE TO GET REGISTRATION UNDER RERA?

  • A person who constructs or causes to be constructed an independent building or a building consisting of apartments, or converts an existing building or a part thereof into apartments, for the purpose of selling all or some of the apartments to other persons and includes his assignees.
  • A person who develops land into a project, whether or not the person also constructs structures on any of the plots, for the purpose of selling to other persons all or some of the plots in the said project, whether with or without structures.
  • Any development authority or any other public body in respect of allotters of—

 (a) Buildings or apartments, as the case may be, constructed by such authority or body on lands owned by them or placed at their disposal by the Government.

 (b) Plots owned by such authority or body or placed at their disposal by the Government, for the purpose of selling all or some of the apartments or plots.

  • An Apex State level co-operative housing finance society and a primary co-operative housing society which constructs apartments.
  • An apex State level co-operative housing finance society and a primary co-operative housing society which constructs apartments or buildings for its Members or in respect of the allottees of such apartments or buildings.
  • Any other person who acts himself as a builder, colonizer, contractor, developer, estate developer, or by any other name or claims to be acting as the holder of a power of attorney from the owner of the land on which the building or apartment is constructed or plot is developed for sale.
  • Such other person who constructs any building or apartment for sale to the general public.
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EXCEPTION of RERA REGISTRATION

  • where the area of land proposed to be developed does not exceed five hundred square meters or the number of apartments proposed to be developed does not exceed eight inclusive of all phases:

 

Provided that, if the appropriate Government considers it necessary, it may, reduce the threshold below five hundred square meters or eight apartments, as the case may be, inclusive of all phases, for exemption from registration under this Act;

  • Where the promoter has received a completion certificate for a real estate project prior to the commencement of this Act.
  • For the purpose of renovation or repair re-development which does not involve marketing, advertising selling, or new allotment of any apartment, plot, or building, as the case may be, under the real estate project.

Requirement of Registered as an agent under authority:

  • No real estate agent shall facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of it, being the part of the real estate project registered under section 3, being sold by the promoter in any planning area, without obtaining registration under this section. 
  • Every real estate agent shall make an application to the Authority for registration in such form, manner, within such time and accompanied by such fee and documents as may be prescribed.

Functions of Real estate agents:

  • Not facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of it, being sold by the promoter in any planning area, which is not registered with the Authority.
  • Maintain and preserve such books of account, records and documents as may be prescribed.
  • Not involve himself in any unfair trade practices, namely:—
  1. The practice of making any statement, whether orally or in writing or by visible representation which:-
  2. Falsely represents that the services are of a particular standard or grade.
  3. Represents that the promoter or himself has approval or affiliation which such promoter or himself does not have.
  4. Makes a false or misleading representation concerning the services.
  1. Permitting the publication of any advertisement whether in any newspaper or otherwise of services that are not intended to be offered.
  1. d) Facilitate the possession of all the information and documents, as the allottee, is entitled to, at the time of booking of any plot, apartment or building, as the case may be.
  2. F) Discharge such other functions as may be prescribed.  

RIGHT AND DUTIES OF ALLOTTERS

  1. The allottee shall be entitled to obtain the information relating to sanctioned plans, layout plans along with the specifications, approved by the competent authority and such other information as provided in this Act or the rules and regulations made thereunder or the agreement for sale signed with the promoter

 2.The allottee shall be entitled to claim the refund of amount paid along with interest at such rate as may be prescribed and compensation in the manner as provided under this Act, from the promoter, if the promoter fails to comply or is unable to give possession of the apartment, plot or building, as the case may be, in accordance with the terms of agreement for sale or due to discontinuance of his business as a developer on account of suspension or revocation of his registration under the provisions of this Act or the rules or regulations made there under.

 3.The allottee shall be entitled to claim the possession of apartment, plot or building, as the case may be, and the association of allottees shall be entitled to claim the possession of the common areas, as per the declaration given by the promoter under sub-clause (C) of clause (l) of sub-section (2) of section 4.

 4.The allottee shall be entitled to claim the refund of amount paid along with interest at such rate as may be prescribed and compensation in the manner as provided under this Act, from the promoter, if the promoter fails to comply or is unable to give possession of the apartment, plot or building, as the case may be, in accordance with the terms of agreement for sale or due to discontinuance of his business as a developer on account of suspension or revocation of his registration under the provisions of this Act or the rules or regulations made thereunder.

5.The allottee shall be entitled to have the necessary documents and plans, including that of common areas, after handing over the physical possession of the apartment or plot or building as the case may be, by the promoter.

6.Every allottee, who has entered into an agreement for sale to take an apartment, plot or building as the case may be, under section 13, shall be responsible to make necessary payments in the manner and within the time as specified in the said agreement for sale and shall pay at the proper time and place, the share of the registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent, and other charges, if any.

7.The allottee shall be liable to pay interest, at such rate as may be prescribed, for any delay in payment towards any amount or charges to be paid under sub-section (6).

8.The obligations of the allottee under sub-section (6) and the liability towards interest under sub-section (7) may be reduced when mutually agreed to between the promoter and such allottee.

9.Every allottee of the apartment, plot or building as the case may be, shall participate towards the formation of an association or society or cooperative society of the allottees, or a federation of the same.

10.Every allottee shall take physical possession of the apartment, plot or building as the case may be, within a period of two months of the occupancy certificate issued for the said apartment, plot or building, as the case may be.

11.Every allottee shall participate towards registration of the conveyance deed of the apartment, plot or building, as the case may be, as provided under sub-section (1) of section 17 of this Act

FUNCTION AND DUTIES OF PROMOTER:

  • Be responsible for all obligations, responsibilities, and functions under the provisions of this Act or the rules and regulations made thereunder or to the allottees as per the agreement for sale, or to the association of allottees, as the case may be, till the conveyance of all the apartments, plots or buildings, as the case may be, to the allottees, or the common areas to the association of allottees or the competent authority, as the case may be: 

Provided that the responsibility of the promoter, with respect to the structural defect or any other defect for such period as is referred to in sub-section (3) of section 14, shall continue even after the conveyance deed of all the apartments plots or buildings, as the case may be, to the allottees are executed.

  • Be responsible to obtain the completion certificate or the occupancy certificate, or both, as applicable, from the relevant competent authority as per local laws or other laws for the time being in force and to make it available to the allottees individually or to the association of allottees, as the case may be.
  • Be responsible to obtain the lease certificate, where the real estate project is developed on a leasehold land, specifying the period of lease, and certifying that all dues and charges in regard to the leasehold land has been paid, and to make the lease certificate available to the association of allottees.
  • Be responsible for providing and maintaining the essential services, on reasonable charges, till the taking over of the maintenance of the project by the association of the allottees.
  • Enable the formation of an association or society or co-operative society, as the case may be, of the allottees, or a federation of the same, under the laws applicable:

 

Provided that in the absence of local laws, the association of allottees, by whatever name called, shall be formed within a period of three months of the majority of allottees having booked their plot or apartment or building, as the case may be, in the project;

  • Execute a registered conveyance deed of the apartment, plot or building, as the case may be, in favour of the allottee along with the undivided proportionate title in the common areas to the association of allottees or competent authority, as the case may be, as provided under section 17 of this Act;
  • (g) pay all outgoings until he transfers the physical possession of the real estate project to the allottee or the associations of allottees, as the case may be, which he has collected from the allottees, for the payment of outgoings (including land cost, ground rent, municipal or other local taxes, charges for water or electricity, maintenance charges, including mortgage loan and interest on mortgages or other encumbrances and such other liabilities payable to competent authorities, banks and financial institutions, which are related to the project):

 

Provided that where any promoter fails to pay all or any of the outgoings collected by him from the allottees or any liability, mortgage loan and interest thereon before transferring the real estate project to such allottees, or the association of the allottees, as the case may be, the promoter shall continue to be liable, even after the transfer of the property, to pay such outgoings and penal charges, if any, to the authority or person to whom they are payable and be liable for the cost of any legal proceedings which may be taken therefor by such authority or person.

 

  • after he executes an agreement for sale for any apartment, plot or building, as the case may be, not mortgage or create a charge on such apartment, plot or building, as the case may be, and if any such mortgage or charge is made or created then notwithstanding anything contained in any other law for the time being in force, it shall not affect the right and interest of the allottee who has taken or agreed to take such apartment, plot or building, as the case may be.

Frequently Asked Question

I hope these answers help you. If you have any further questions, please feel free to ask!

 

RERA is an Indian law that was enacted in 2016 to regulate the real estate sector and protect the interests of homebuyers. It aims to bring transparency and accountability to the real estate industry and ensure timely completion of projects.

The objective of RERA is to create a transparent and efficient real estate market in India. It seeks to protect the interests of homebuyers by ensuring that developers deliver their projects on time, use high-quality materials, and adhere to the approved building plans.

RERA covers all real estate projects that are being developed in India, whether commercial or residential. All real estate developers and builders must register their projects under RERA, and real estate agents must also be registered.

Some of the key provisions of RERA include the mandatory registration of all real estate projects, the requirement for developers to deposit a percentage of the project cost in a separate escrow account to ensure that the funds are used only for the project, and the establishment of a Real Estate Regulatory Authority in each state to enforce the provisions of the law.

If a developer or builder fails to comply with the provisions of RERA, they may face penalties such as fines, imprisonment, or cancellation of their project registration.

RERA provides several benefits to homebuyers, including greater transparency and accountability in the real estate sector, increased protection of their rights and interests, and faster resolution of disputes.