RERA is the acronym for the Real Estate Regulatory Authority, which is responsible for the enforcement of the Real Estate (Regulation & Development) Act. In 2016, this Act was introduced to regulate the real estate sector’s problems. In order to implement the Act, the governing authorities are responsible for:
- For commercial properties and residential flats, registration and related approvals related to RERA are required.
- Selling and buying real estate properties is regulated.
RERA registration brings transparency to these contracts and benefits all parties. Additionally, it reduces the chances of delays in real estate contracts. This registration aims to protect real estate buyers as well as boost investment in the sector.
Objectives Of RERA Registration
- In order to protect the interests of consumers, there needs to be more transparency and accountability.
- The dispute resolution mechanism is intended to resolve grievances.
- By increasing compliance, fraud can be reduced.
- The purpose of fair play is to reduce delays.
- Ensure smooth operations by establishing professional standards.
- Promoting good governance practices will create awareness.
- By imposing responsibilities on the buyer and the promoter, transactions will be made easier.
- Set up the Appellate Tribunal to hear appeals of RERA orders, decisions, and directions.
Applicability of RERA Registration
- Parties to the transaction – A real estate agent or promoter includes a builder, developer, contractor, development body, or other public body that constructs or develops land/buildings/apartments for the purpose of selling them.
- Type of properties – This applies to commercial buildings, residential apartments, and land plots for sale.
- Area – Real estate projects exceeding 500 square feet must be registered. Apartments with more than eight square meters.
Documents required for Real Estate Agent Registration:
- Permanent address proof.
- The name, registered address, and type of enterprises, such as a sole proprietorship, society, co-operative society, partnership, or company, if any, of the real estate agent enterprise.
- Particulars of the registration of the enterprise, such as the byelaws, the memorandum of association, the articles of association, etc.
Buyer Benefits Of RERA Registration
- Possession of the property on time
- Project details that are accurate
- Clearance of licenses assured
- Defects must be repaired
- Advertisement restricted
- The booking amount must be paid
Which are RERA projects that do not require registration under the RERA Act?
The following projects are not required to be registered under the RERA Act:
- A land area of less than 500 square meters or a number of apartments not exceeding eight.
- In this case, the work involves only the following:
- Reconstruction or renovation
- There is no selling, marketing, advertising, or new allotment of a plot, apartment, or building involved in it.
- If the promoter obtained a completion certificate before the RERA Act came into effect.
Does the RERA Act apply throughout India?
All Indian states are covered by the RERA Act.
Is the RERA Act applicable to commercial and residential projects?
RERA initially covered only residential projects. Through various amendments, commercial projects, such as buildings, shops, and offices, were later included in the RERA Act.
Is it possible to revoke the RERA registration?
Yes, The RERA authority can revoke the registration of a developer or builder when it receives a complaint against them and is satisfied that they are not complying with the regulations.
How long does a RERA registration valid?
As declared by the promoter, the RERA registration is valid for the duration of the project.