RERA Registration

What is RERA (Real Estate Regulatory Act)?

The Real Estate (Regulation and Development) Act, 2016 introduced with a view to establish regulatory authorities at the state level to register residential real estate projects and seeks to regulate contracts between buyers and sellers in the real estate sector to ensure sale of plot, apartment or building, etc. in an efficient and transparent manner. It also proposes to ensure greater accountability towards consumers, and significantly reduce frauds and delays as also the current high transaction costs.

By imposing certain responsibilities on purchasers and promoters, it attempts to balance the interest of both. It seeks to establish the following:

• Ease of information between the Promoter and Purchaser;
• High level of transparency of contractual Conditions;
• Set minimum standards of accountability and;
• A fast-track dispute resolution mechanism.

Why there is a need for RERA in India?

In India, the real estate sector plays a vital role in fulfilling the need and demand for housing and infrastructure development. While this sector has grown rapidly in recent years, it has been largely unregulated though in India there is state apartment act with the absence of professionalism and standardization. The lack of adequate consumer protection mechanism resulted in exploitation and profiteering by unscrupulous builders. Thus, the Real Estate Act will protect the interest of buyers and also give much-needed impetus to the sector.

What is the impact of RERA on Real Estate Sector?

With the introduction of RERA, State Real Estate Regulatory Authority and the Real Estate Appellate Tribunal have been established in order to resolve the disputes pertaining to purchase of the property. There will be no other consumer forums and civil courts for the aggrieved party to settle down such matters. For fast-tracking dispute resolution, the groundwork is set up by the RERA. However, its success depends upon the timely establishment of new dispute resolution bodies and expeditious resolution of disputes.

Following are the key impact of RERA on Real Estate Industry:

• Increase in Project cost and Cost of Capital
• Tight liquidity

What are the main objectives of enforcement of RERA Act?

Following are the main objectives of enforcement of RERA Act:

• Establishing a fast-track dispute resolution mechanism;
• Ensuring accountability towards buyers and protect their interest;
• Infusing transparency, ensure fair-play and reduce frauds & delays;
• Ensuring the sale of real estate project, in an efficient and transparent manner;
• Introducing professionalism and pan India standardization;
• Establishing symmetry of information between the developer and buyer;
• Imposing certain responsibilities on both developer and buyers;
• Promoting good governance in the sector and create investor confidence;

Who all are required to apply for RERA Registration?

RERA registration is applicable on promoters, project and real-estate agents subject to the following conditions:

• The applicability of the Act has been extended to commercial and residential real estate (including plotted development).
• All the residential and the commercial projects exceeding 500 square meters or more than 8 units/apartments have to mandatorily apply for RERA registration with the Real Estate Regulatory Authority (RERA); thereby ensuring that even the small projects by local promoters are brought under the ambit of the Act.
• All the ongoing projects that have not received Completion Certificates have also been brought under the purview of the Act and such projects will need to apply for RERA registration with the Regulator within 3 months.
• Prior RERA registration is required to be taken from RERA under respective state laws by the Real estate agents who facilitate selling or purchase of properties. RERA Registration certificate is valid for all over the state / UT.
• Application for RERA registration must be approved or rejected within a period of 30 days from the date of an application made.
• On successful RERA registration and approval from the authority, the promoter of the project will be provided with a unique registration number, a login id, and password for the applicants to update the necessary details about the company and project.

What is the procedure of RERA registration?

Every promoter and agent have to register themselves with the state RERA authority as per the RERA Act. There is a prescribed procedure for the registration of real estate projects and agents.

RERA registration is done in respect of commercial projects as well as residential projects along with the necessary documents and prescribed fees.

In case of failure to apply for RERA registration, a penalty of up to 10 percent of the project cost or three years’ imprisonment may be imposed.

What are the criteria for RERA Registration fee for different category of applicants?

a. RERA Registration fees in Maharashtra

Project registration under MH-RERA Rs. 10 per square meter or Rs. 50,000 minimum and maximum Rs. 10 Lac.

Agent registration under Maharashtra RERA Rs. 10,000 in case of individual and Rs. 100,000 in case others.

• Project Registration Fee
• RERA Agent Registration Fee

b. RERA Registration fees in Uttar Pradesh

• Project Registration Fee

For Agent registration under RERA as individual Rs. 25000 and in case of others Rs. 2,50,000/-.

• RERA Agent Registration Fee

What will be the validity period of RERA registration and what are the provisions regarding extension?

The RERA registration shall be valid for such period as decided by the Promoter for project completion or period described in the affidavit along with the RERA registration application. However, on the receipt of application from the Promoter for an extension, the authority may grant the extension under the below-mentioned circumstances:

• Force Majeure: In the case of war, flood, drought, fire, cyclone, earthquake, a natural calamity which may affect the development of the real estate project.
• Other than force majeure: If the authority finds that the reasons given for extension are reasonable then the extension will be provided of a maximum period of one year.

What are the rules regarding revocation of RERA registration?

In respect of real estate project, RERA act stipulates various compliances. RERA registration may be revoked if the prescribed compliances are not complied with. RERA registration may be revoked by the authority on the basis of a complaint received or on suo moto basis by giving 30 days written a notice to the promoter. Such written notice may be given on the basis of the proposed revocation.

On receiving the notice, the promoter will give the show cause notice as to why the RERA registration should not be revoked by the authority.

After this, the authority will either allow the real estate project to be registered or cancel the RERA registration.

On the following grounds, show cause notice may be issued:

• In case of default made by the promoter;
• In case of the violation of the terms and conditions by the promoter;
• If it is found that Promoter is indulged in unfair practice and in any fraudulent practices like misrepresentation / publication of any advertisement  which are not intended to be offered;

What will be the consequence of non registration?

As per section 59 of the RERA Act, in case of non registration there is a penalty of up to 10% of the estimated project cost and in case of continuous default there will be an additional fine of up to 10% of the estimated project cost or 3 years imprisonment or both.

As per section 31 of the RERA Act, a complaint may be filed by the aggrieved person with the authority in case of violation of the RERA provisions by the promoter. There are wide powers entrusted with the authority in relation to non-compliance by the Promoter. Authority may levy a penalty or take the remedial measures/safeguards as may be deemed fit. On the case, to case basis, authority may grant interim order(s), refund of the amount received by the Promoter.

What are the rules regarding a loan from banks or financial institutions?

In case the real estate project is not registered or the registration has been canceled, then loan given by the banks and financial institutions to the retail buyers will involve high risk and uncertainties regarding the real estate project completion. In relation to such real estate project, action taken by the RERA authority may be detrimental to the interest of such bank / financial institution.

Therefore Banks / Financial Institutions also insist for RERA registration before sanctioning the loan to the buyers in order to protect their interest.

Is RERA registration gives protection to the buyers?

Yes, buyers feel more secure if the project is registered as it makes mandatory for developers to rectify the faults in the construction which came into notice after receiving the possession. It will improve the transparency in the real estate sector.

What are the market changes after one year of implementation of RERA?

After one year of implementation of RERA, some of the buyers are questioning the legislation as changes are not visible to them on the ground whereas developers feel that RERA bought transparency in the real estate sector.

The debate will continue but according to our government has taken the good initiative to bring accountability in the real estate sector and enhance the confidence of the buyers.

How we can help you with RERA registration?

Enterslice is a leading platform which provides all type of legal compliance services in all over India and in more than 22 countries. You just have to go through the following below mentioned steps in order to get your RERA registration in India:

• First provide us your basic details such as name, Email Id & Mobile No on our website ( kbng.in/Registration) and then – Click on Get Started button.
• After this, wait for a Call back by an expert or directly pay online if you are clear about the RERA Registration process.
• Within 4 to 8 Working hours, our expert will call you back and assist you however in case of further queries someone from senior management will speak with you on Skype. You can also drop an email to info@kbng.in.
• After understanding the structure of your real estate project, a team of Enterslice will share a detailed checklist of documents required from your end for further action.
• After this, you will receive a unique order Number to track the progress of the assignment.
• You can upload documents through a mobile application (Enterslice Mobile app is available on Google Play Store for Android users and on Apple App Store for ios users). 
• Thereafter we will assign your order of RERA registration to our team of professionals.
• You can track the status of your order on our website or by using Mobile App.
• We will send you regular updates via email about the work progress.
• Our team will handle end to end process of RERA Registration such as Filling of the application form, drafting, end to end coordination with the department.

What are the documents required for RERA registration Process in India?

What are the benefits of RERA Registration?