RERA Registration
Real estate is one of the most valuable sectors in India. Its growth has been unprecedented in the past decade, thanks to increased per capita income, changing lifestyle, and emphasis on urbanization. Since this sector attracts significant corpus and renders unmatched price appreciation, it often entices real estate companies to adopt illicit practices that ultimately make end-users pay the price. Malpractices including false promises, assured returns, forced cancellation, rushed sales, etc have been rotting this sector for years. To curb this pressing issue, the Indian government enacted legislation viz.
Real Estate (Regulation and Development) Act, 2016. It seeks to formalize real-estate dealings, reinforce level field play, and impart transparency, safeguarding the end-users and stakeholders’ interests. Let’s delve into the legalities of RERA Registration, process, paperwork, and penalties.
Significance of RERA Registration in Real-Estate Regime
RERA registration spans all real-estate developers and agents serving commercial and industrial settings. These individuals must visit the respective state’s RERA portal and get registered via an application. This must happen before they introduce their project to the public for sale.
Upon registering, prevailing real-estate projects will come under the radar of the nodal agency viz. Real Estate Regulatory Authority falling under the Real Estate (Regulation and Development) Act, 2016. The authority ensures that projects’ details stay visible to the buyers so that they can make informed decisions. RERA comprehensively regulates real estate developers and agents to keep things formalized, transparent, and legal.
Documents Required for securing the RERA registration
- Title deed
- Development plans
- Layout plan
- Encumbrance details of the land
- Sanctioned plans
- PAN card and Aadhaar number etc
- Cash flow statements and income tax returns
Steps to Secure the RERA Registration for Real Estate Agents
Step 1: Head to the state-specific RERA portal.
Step 2: Locate and explore the Registration tab.
Step 3: Select the apt option from the following:
- Projects (Application by Promoter)
- Real Estate Agent
- Purchaser.
Step 4: Wait till the portal leads you to the next window wherein you will fill out the pre-registration form.
Step 5: Fill out the registration form with accurate details.
Steps to secure the RERA Registration for promoters
Step 1: Make your way to the respective state’s RERA portal.
Step 2: Login or create an account with valid credentials if required.
Step 3: Select the apt option from the following:
- Promoter
- Real Estate Agent
- Purchaser
Step 4: Select Promoter since you serve the same role. Wait till you come across the next window enlisting a pre-registration form.
Step 5: Fill the out form with valid and accurate details
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Steps to obtain the RERA Registration for buyers
Step 1: Make your way to the respective state’s RERA portal.
Step 2: Login or create an account with valid credentials if required.
Step 3: Select the apt option from the following:
- Promoter
- Real Estate Agent
- Buyer
Step 4: Select Buyer since you serve the same role. Wait till you come across the next window enlisting a pre-registration form.
Step 5: Fill out the form with valid and accurate details.
Notable compliances for developers under RERA registration
- Developers must stay transparent with the general public concerning their projects, land status, layout plans, promoters’ details, statutory approvals, and completion schedules.
- The license holder must not deviate from the approved plans and project specs sanctioned by the concerned regulators. Any changes made to the project require the permission of over 65% of allottees.
- The project completion timeline intimated to the authority should stay intact. Any delay would make developers liable for paying compensation to the customer.
- 70% of sales funds should make their way to the separate escrow account. This amount must be dedicated to building RERA-approved projects.
- The carpet area must serve as a prime parameter for selling real-estate units, allowing users to have clarity on the exact usable area.
- Every real-estate developer must provide customers with 5-years warranty on structural defects. Any physical anomaly found within warranty period must be repaired with no question asked.
Penalties for non-compliance under the RERA Registration
| Type of Non-Compliance | Penalty |
| Non-registration of project | Up to 10% of the estimated cost of the real estate project. |
| Providing false information | Up to 5% of the estimated cost of the real estate project. |
| Non-compliance with orders of RERA | Daily penalty which may cumulatively extend up to 5% of the estimated cost of the project. |
| Non-compliance with orders of Appellate Tribunal | Imprisonment up to 3 years or a fine up to 10% of the estimated cost of the project, or both. |
| Non-registration by real estate agents | Penalty of ₹10,000 for every day during which the default continues, which may extend up to 5% of the cost of the plot, apartment, or building, as the case may be, of the real estate project. |
| Non-compliance by real estate agents | Daily penalty which may cumulatively extend up to 5% of the estimated cost of the plot, apartment, or building. |
| Non-compliance with orders of RERA by real estate agents | Penalty for each day during which such default continues, which may cumulatively extend up to 5% of the estimated cost of the plot, apartment, or building, as the case may be, of the real estate project. |
| Non-compliance with orders of the Appellate Tribunal by real estate agents | Imprisonment up to 1 year or a fine up to 10% of the estimated cost of the plot, apartment, or building, as the case may be, of the real estate project, or both. |
Conclusion
Securing RERA registration is a legal compulsion for real estate developers, promoters, and agents. After securing the registration, the license holder must abide by the norms cited under the RERA Act to stay compliant. Any non-conformity can expose license-holder to stringent penalties, including hefty monetary fine and jail-term ranging from 1 to 3 years.
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