RERA Stands For Real Estate Regulatory Authority
RERA is an act for regulation and promotion of the real estate sector to ensure the sale of apartment, plot or building in an efficient and transparent manner. The Act aims to protect the interest of consumers. It was enacted by the Parliament in May 2016 and the Act has come into force with all its 92 sections from 1st May 2017 across India. So far, 14 states and union territories such as Uttar Pradesh, Gujarat, Bihar, Madhya Pradesh, Odisha, Andhra Pradesh, and Maharashtra have notified their rules with RERA and the others are expected to follow suit.
The implementation of RERA is expected to bring relief to the homebuyers as builders will be accountable for the timely delivery of the projects and to protect buyers from fraud sellers. The developers would also gain from the increased confidence of the consumers in a regulated environment.
It is mandatory for the developers to get all approvals from various government agencies before launching a project and disclose all the information on the website that the respective state RERA regulatory authority will set up.
Real estate agents will be provided a registration number by the regulator which they have to mention in every property sale. This will help in eliminating the possibility of misleading the purchaser. The authority has wide ranging powers to impose penalties and imprisonment of agents in case of violation of the law.
Registration Of Projects Under RERA
All commercial and residential real estate projects will have to register except in projects where:
- The promoter has received completion certificate of the project prior to commencement of Act
- The area of land proposed to be developed does not exceed 500 sq. mt
- The number of apartments is not more than 8
- Any repair or renovation of an existing building or structure that does not require marketing, advertising, and selling of any apartment or plot
Documents Required For Registration Under RERA
Following documents should be enclosed in hardcopy with the application:
- PAN Card of the builder
- ITR of last 3 years and the balance sheet of the builder
- The builder must clarify about the apartment (carpet area, number of floors, parking space)
- Declaration by the builder of having legal title of the land with proof
- Details of the land (rights, title, mortgage)
- If the builder is not the owner of the land, the consent letter of the actual owner with documents will be required
- Details of the project (location, sanctioned plan, layout plan)
- Ownership documents (proforma of allotment letter, agreement of sale)
- Information of the persons involved (Architects, Engineers and others)
The Registration Process For Real Estate Agents
- Fill an application of Filling of complaints under RERA along with fee and documents to get registered with RERA
- You will receive a registration number from the regulator. This need to be mentioned in every property sale
- On a quarterly basis, you are required to maintain the books of account, records and documents related to the transactions
- Share all the information and documents about the project with the buyer
- The agent may be suspended for the misrepresentation or fraud during the registration process
Filling Of Complaints Under RERA
- Any aggrieved person may file a complaint with RERA for any violation of the provisions of the Act.
- In case the person is not satisfied with the decision made by RERA or its officer, he may file an appeal before the RERA Appellate Tribunal within a period of 60 days
- From the date of the decision made by Appellate Tribunal, a person can file an appeal to the High Court within 60 days