RERA Registration

At A2Z FINEDGE, we specialize in offering seamless and comprehensive RERA (Real Estate Regulatory Authority) Registration services. With a team of experienced professionals, including Chartered Accountants (CA), Company Secretaries (CS), MBAs, Lawyers, and Advocates, we ensure your compliance with the Real Estate (Regulation and Development) Act, 2016. Whether you are a promoter, real estate agent, or developer, Filing Corner provides expert guidance to help you navigate the complexities of RERA registration and compliance.

What is RERA ?

If you're involved in the real estate sector or planning to enter it, understanding the Real Estate (Regulation and Development) Act, 2016, and obtaining RERA registration is crucial.

The Real Estate (Regulation and Development) Act, 2016, also known as RERA, is a government initiative aimed at promoting transparency, accountability, and efficiency in the real estate sector. RERA establishes a regulatory authority in each state and union territory to monitor and regulate real estate activities, ensuring that both buyers and developers are protected. It mandates the registration of developers, agents, and projects, and sets clear guidelines for project timelines, quality standards, and financial disclosures.

Why is RERA Registration Necessary ?

RERA registration is mandatory for developers and real estate agents in order to operate legally in the real estate market. It ensures that:

-          Transparency and Accountability : Developers must adhere to clear timelines and quality standards, which helps reduce delays and fraud.

-          Consumer Protection : It protects homebuyers from unfair practices by ensuring developers fulfill commitments on time and in the agreed-upon manner.

-          Standardization : By adhering to RERA guidelines, developers maintain industry standards and quality.

-          Improved Trust : It creates trust between buyers and developers by providing clear legal rights and obligations.

How Does the RERA Act Regulate the Real Estate Industry?

·         Mandatory Registration: All real estate projects exceeding 500 square metersor 8 units must register with the state’s RERA authority.

·         Escrow Account for Funds: Builders must deposit 70% of project funds in a separate escrow account to ensure proper utilization.

·         Timely Project Completion: Builders are legally obligated to complete projects as per the timeline declared at the time of registration.

·         Transparent Advertising: Only registered projects can be advertised, and all advertisements must include the RERA registration number.

·         Standardized Sales Agreements: The Act mandates the use of standardized agreements to protect buyers from unfair terms.

·         Grievance Redressal Mechanism: Dispute resolution is facilitated through state-level RERA authorities and Appellate Tribunals.

·         Penalties for Non-Compliance: Heavy penalties, including fines and imprisonment, are imposed for violations of RERA provisions.

Important Rules of RERA That Builders Should Keep in Mind

·         Project Registration: Builders must register all ongoing and new projects under RERA if they meet the prescribed size or unit threshold.

·         Advance Payment Cap: Builders cannot accept more than 10% of the property’s cost as an advance payment without entering into a sale agreement.

·         Disclosure of Project Details: Builders must disclose project details, including layout plans, approvals, land title, and contractor information, on the RERA portal.

·         No Changes Without Consent: Builders cannot make structural changes or alter plans without the written consent of two-thirds of the allottees.

·         Quality Assurance: Builders are responsible for rectifying structural defects or poor workmanship within five years of property handover.

·         Timely Refunds: In case of project delays, builders must refund the full amount to the buyers with interest.

·         Quarterly Project Updates: Builders are required to upload regular updates about the project’s progress on the RERA portal.

·         Post-Completion Maintenance: Builders must ensure proper maintenance of the property until it is handed over to the association of buyers.

Benefits of RERA Registration

Eligibility Criteria for RERA Registration

To qualify for RERA registration, developers and real estate agents must meet the following eligibility criteria:

For Developers :

·         The applicant must be a real estate developer or builder.

·         The applicant must provide details about the project, including land title documents, approvals, and an estimated timeline for completion.

·         The developer must be financially stable and able to complete the project as per the disclosed plan.

For Real Estate Agents :

·         The individual or entity must be involved in facilitating property transactions.

·         The applicant must have a valid professional qualification, if required by the respective state authority.

·         The real estate agent must comply with RERA's rules and regulations regarding property transactions.

Regulatory Framework Under RERA

Ø  Real Estate (Regulation and Development) Act, 2016:

o    Establishes regulatory authorities and Appellate Tribunals in every state and union territory.

o    Provides guidelines for project registration, agent registration, and dispute resolution.

Ø  State-Level Rules:

o    Each state implements RERA with state-specific rules and regulations, ensuring localized compliance.

Ø  Key Provisions:

o    Mandatory registration for projects exceeding 500 square meters or 8 units.

o    Separate escrow accounts to ensure proper utilization of funds.

o    Quarterly project updates on the RERA portal.

Ø  Adjudication Mechanism:

o    Fast-track dispute resolution through RERA authorities and tribunals.

Who is Exempt from RERA Registration?

·         Small-Scale Real Estate Developers

·         Projects Not Involving Sale of Property

·         Residential Projects with No Sale Component

·         Real Estate Agents Dealing with Only Family or Friends

·         Projects Located Outside India

When is RERA Registration Not Required?

§  Developers Building Property for Own Use

§  Unfinished Projects

§  Projects Involving Landowners Only

§  Private Agreements

Conditions for Exemption

Ø  Registration of the Project with the Local Authority : Even if a project is exempt from RERA registration, developers may still be required to register with local municipal or urban development authorities.

Ø  Non-commercial Nature : Exemptions are generally only granted for non-commercial, small-scale, or personal-use projects. If the project is for public sale, rental, or investment purposes, RERA registration is usually mandatory.

Ø  State-Specific Exemptions : Since RERA is a state-level regulation, each state has its own rules and criteria for exemption. Developers must check with the local RERA authority to understand the specific conditions that apply in their region.

Penalties for Non-Compliance

Failure to comply with RERA regulations can result in specific and severe penalties:

·         For Promoters:

o    Penalty of up to 10% of the project cost for non-registration.

o    Additional fine or imprisonment up to 3 years for continuous violations.

o    Daily Penalty: Additional fines may be imposed for non-compliance with orders from the regulatory authority.

·         For Real Estate Agents:

o    Fine of ₹10,000 per day during the period of default, up to 5% of the property’s cost involved in the transaction.

·         Revocation of Registration:

o    Persistent non-compliance may result in cancellation of the RERA registration, halting project activities.

·         Legal Proceedings:

o    Promoters and agents may face court proceedings for severe violations, leading to additional penalties.

·         Blacklisting:

o    Frequent violations can result in blacklisting, restricting future project approvals.

·         Reputational Damage:

o    Public notices and penalties can harm the credibility of the promoter or agent, impacting future business prospects.

Documents Required for RERA Registration

For Developers :

§  Title Deed of Land: Proof of ownership or rights to the land for the project.

§  Project Details: Site plan, layout plan, and floor plan of the project.

§  Approvals: Approvals from local bodies and environmental clearance.

§  Land Use Certificate: A certificate ensuring the land is designated for real estate development.

§  PAN Card

§  Identity Proof: Valid government-issued ID for the developer.

§  Audited Financial Statements: Balance sheet and profit and loss statements for the last three years.

§  Certificate of Incorporation

§  CIN / TAN number

§  Memorandum of Association and Articles of Association

§  Particulars of directors or any other authorized personnel

For Real Estate Agents :

§  Identity Proof: Valid government-issued ID (Aadhaar, Voter ID, Passport, etc.).

§  Address Proof: Proof of residential address.

§  Business Registration: If applicable, proof of registration of business.

§  Qualification Certificates: Any required qualifications for operating as a real estate agent.

§  PAN Card: A valid PAN card of the agent or business entity.

RERA Registration Process

Ø  Application for RERA Registration :

The RERA registration process is straightforward and can typically be completed online through the state’s RERA website. Below is a step-by-step guide:

Step 1: Visit the RERA Portal Go to the official RERA website of your state or union territory. Every state has its own RERA portal.

Step 2: Create an Account Register on the portal by creating an account with basic information such as name, email, mobile number, and password.

Step 3: Fill in Application Form Once logged in, fill out the application form for either developer or real estate agent registration. Provide all necessary details about your business and the project (for developers).

Step 4: Upload Documents Upload the required documents mentioned above in the respective sections. Ensure that all documents are in the prescribed format.

Step 5: Pay Registration Fee Pay the registration fee through online payment methods. The fee varies depending on the type of registration (developer or agent) and the state in which you are registering.

Step 6: Review and Submit Carefully review your application and submitted documents before submitting. Once everything is complete, submit your application.

Step 7: Receive Registration Number After successful submission, you will receive a unique RERA registration number. This number must be prominently displayed on all advertisements, contracts, and documents related to the real estate project or agency.

Ø  RERA Registration Renewal :

RERA registration is valid for a limited period, and it must be renewed periodically to ensure continued compliance with the Act's provisions

The RERA registration is typically renewed annually. However, the renewal cycle may vary by state. It is essential to keep track of renewal dates to avoid penalties or suspension of your registration.

Renewal Process:

Step 1: Log in to the RERA Portal Visit the official RERA portal of your state and log in with your registered credentials.

Step 2: Select Renewal Option Once logged in, select the option to renew your RERA registration. You'll be prompted to enter your current registration details.

Step 3: Update Information Update any required information, such as project progress, financial statements, or any changes in your business or project.

Step 4: Submit Documents Upload any updated or additional documents as per the renewal requirements. This may include new approvals, project updates, or financial statements.

Step 5: Pay Renewal Fee Pay the renewal fee, which is usually lower than the initial registration fee but varies by state.

Step 6: Receive Renewal Confirmation After successful submission and payment, you will receive confirmation of your RERA registration renewal, along with a new registration validity date.

How to Apply for Exemption from RERA Registration?

If you believe that your project or real estate business qualifies for an exemption from RERA registration, here’s how you can apply for it:

Ø  Check Local RERA Guidelines : Visit your state’s official RERA website or consult with local RERA authorities to understand the exemption criteria specific to your region.

Ø  Submit an Application : In some cases, developers or agents must apply for exemption by submitting a request to the local RERA authority, along with relevant documents.

Ø  Provide Justification : You may need to explain why your project or business should be exempt from RERA registration. This could involve demonstrating that your project is small-scale, for personal use, or does not involve property sales.

Ø  Await Approval : After reviewing the application, the local RERA authority will decide whether to grant the exemption. If granted, you will receive a confirmation letter or notice stating that you are exempt from the registration process.

FAQs

1.      What is RERA registration?

·         RERA registration is a mandatory process for developers, builders, and real estate agents in India to ensure compliance with the Real Estate (Regulation and Development) Act, 2016. It helps protect homebuyers, ensures transparency, and provides legal recognition to businesses involved in real estate transactions.

2.     Who needs to register under RERA?

·         Both developers and real estate agents must register under RERA. Developers need to register individual projects, while real estate agents must register to facilitate property transactions legally.

3.     Is RERA registration valid for all states in India?

·         No, RERA registration is state-specific, as each state in India has its own RERA authority. Developers and agents must register with the relevant authority in the state or union territory where they operate.

4.     Can I edit my application after submission?

·         For developers, once the application is submitted, no further edits can be made. It is essential to double-check the application before submission. However, for renewal applications, certain updates or changes can be made as needed.

5.     How long does it take to receive RERA registration?

·         The time for receiving RERA registration can vary by state, but typically, it takes anywhere from a few days to a couple of weeks after submission of the application and payment.

6.      What happens if I do not renew my RERA registration?

·         Failure to renew RERA registration can result in penalties, suspension of your registration, or the inability to conduct real estate business legally in the state.

7.      Can I transfer my RERA registration to another developer or agent?

·         No, RERA registration is non-transferable.

8.     What is the penalty for non-compliance with RERA?

·         Non-compliance with RERA can result in penalties, legal actions, and even the suspension of business activities. Developers may face fines for delays or failure to meet quality standards, and agents may lose their ability to operate legally.

Why Choose Filing Corner for RERA Registration?

1.       Expert Assistance: Our team has in-depth knowledge of RERA laws across various states.

2.      End-to-End Support: From documentation to filing and follow-ups, we handle the entire process.

3.      Customized Solutions: Tailored services for promoters, real estate agents, and developers.

4.      Timely Compliance: Ensuring your registration is completed without unnecessary delays.

5.      Post-Registration Support: Assistance with periodic updates, renewals, and compliance reporting.

Navigating the RERA registration process can be complex, but with Filings Corner, you’re in safe hands. We provide end-to-end assistance, ensuring compliance and timely registration. Contact us today for expert guidance and a seamless experience.

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