INTRODUCTION
- The Real Estate (Regulation and Development) Act, 2016 is an Act, which passed by the Parliament of India by the majority of Votes;
- The RERA Registration is mandatory for Real Estate developer & agents;
- This Bill passed by The “Rajya Sabha” on 10th March 2016 & also by “Lok Sabha” on 15th March 2016;
- The RERA act comes into force on 1st May 2016 with 59 section out of 92 notified Section & remaining provisions related to RERA came into force on 1st May 2019;
- To help in the protecting of Homebuyer interest in Real estate industry and helping them to boost there Investment by full Security of Interest;
- The RERA act also established the Adjudicating Authority for speedy disposal of Customer & stakeholders disputes;
- The Adjudicating Authority is executed on State level.
APPLICABILITY OF RERA REGISTRATION
The following person or companies are mandatory to get registration under RERA act of there respective state are:-
- Real Estate Agents who provide the services related to Buying or Selling or Exchange of properties (ONE TIME REGISTRATION ONLY) or
- Any repair or renovation in an existing building or structure that requires marketing, advertising and selling of an apartment or plot or
- All commercial real estate project &
- All Residential real estate project.
Where the size of the land exceeds 500 Square meters or 8 Apartments for launching a project, to provide transparency in project-marketing and execution.
BENEFITS OF RERA TO SOCIETY
- Prohibition on Unaccounted Money/Black Money into Real Estate Sectors;
- Compulsorily to Deposited 70% of the money in the Bank through Cheques;
- The Builder has to quote a price based on Carpet area not on Super Built Area;
- The Carpet Area Includes Usable Spaces like Toilet & Kitchen;
- The Penalty on the Promoters to Misleads the Home Buyers;
- There is Transparency in Execution, Pricing, Marketing, Product, Place & Built Area etc.;
- Speedy Disposal of Homebuyer complains within the period of 60 days (Earlier 90 Days);
- It also regulates the Real Estate agents in the RERA act;
- All the Details related to projects mention or available on RERA website of respective State;
- Online RERA portal for complaint against the Builder or Agents or Promoters or Companies or Person in Charge;
- Penalty provisions against the Builder or Agents or Promoters or Companies or Person in Charge for the delay in delivery of Residential or Commercial Projects;
- Any delay by the developer in completion of Project then he required to pay interest @ 2% P.a. above SBI Marginal Cost of leading rate to Buyer for Delayed period;
- A builder has a responsibility up to the period of 5 years on any defect in the Building;
- Developers cannot demand more than 10% of the property cost as advanced (Booking Amount) from the buyer before signing of registered sale agreement;
- Without registration with RERA authority, the developers are not allowed to advertise, sell, offer, market or book any plot or apartment;
- Any Shortcomings in the project then Buyer can contact developer within the period of 1 year from possession in writing.
DOCUMENTS FOR RERA REGISTRATION
Following documents required to enclosed in hardcopy with the application form:
- PAN Card of the builder;
- Income Tax Returns (ITRs) of the last 3 years;
- The balance sheet of the builder of the last 3 years;
- Full details of the Project (Plan layout or Built area or Area or Sanctioned Plans);
- Builder provides detail clarification about the apartment (carpet area, floors, parking space);
- Declaration & Documents of legal title of the land with proof (rights, title, mortgage);
- In case, the builder is not the legal owner of the property or land then consent letter of the Legal owner with documental proof will be required;
- Details Ownership documents like allotment letter or agreement of sale agreement);
- Detail Information of the persons involved like Architects, Engineers and others.
LIST OF STATE WHERE RERA REGISTRATION IS APPLICABLE
For RERA registration in Any state visit This Link