Understanding RERA Registration

RERA registration is a process under the Real Estate (Regulation and Development) Act, which commenced in India in 2016. The primary focuses of the act are transparency, accountability, and efficiency.

 

Why Registration with RERA Is Necessary for Developers and Agents

In order for developers and agents to formally register their projects with the corresponding state RERA authority, they must receive their RERA registration. This is an indispensable step since it will keep the developer in check with the prescriptions of the act in the best interests of the buyers.

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What Are the Main Objectives of RERA?

Having this legislation in place will achieve important objectives such as:

• More organized real estate sector

• Undertaken of mutual trust

• Provision of full-fledged disclosures from developers on aspects relating to the project-design, planning, completion status, and financial standing.

 

What Are Registered Projects With RERA?

 

The RERA registered projects are the real estate developments that have been successfully registered with the state RERA authority and thus involve documentation, including projects details, land title documents, no objection approvals from local authorities, and financial documents.

 

Verification of RERA Registered Projects

 

Upon a project's registration, it is provided with an individual registration number which is a valid way for buyers to check the project's authenticity from the official state RERA website. This instills reasonable trust among the buyers that the project in which they are about to invest is legitimate and upholds RERA timelines, safety standards, and quality parameters.

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What happens if a project is not RERA registered?

If a project is not RERA registered, it may face several consequences:

• Restrictions on advertising and selling: There can be no advertising or selling of units of unregistered projects.

• Lack of legal protection for buyers: While this may seem arbitrary to many, the buyers will not be covered in cases of delays or poor quality construction, with no possibility for compensation or refunds.

• Penalties for developers: Non-compliance can lead to penalties for developers imposed by the state authority.

Therefore, the buyer must do their due diligence and verify that the project one intends to invest in is RERA-registered.

 

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Is it necessary for completed projects to be RERA registered?

 

Yes. RERA registration would also be required for completed projects if they are being sold or marketed after the enactment of The Real Estate (Regulation and Development) Act, 2016. All ongoing and new projects are registered with RERA before their sale by the developers to seek uniformity as per the prescribed standards of the authorities.

 

However, if the project was completed before the enactment of this Act and the developer has no intention of further selling the property, the registration may not be necessary unless some changes are introduced or new phases thereof are taken up.

 

RERA registration gives several advantages to both homebuyers and builders:

 

• Transparency: RERA promotes transparency in transactions by requiring developers to disclose important information about their projects up-front. Furthering the transparency actually allows the buyers to make informed decisions, in turn reducing the chances of fraud or malpractice.

• The law to protect buyers from fraud: It provides buyers with legal protection from fraud. RERA, in other words, allows a clearness opportunity to end the fight between buyer and builder if something goes wrong.

• Timely delivery: RERA establishes guidelines for timely delivery of properties as per the agreed timeline. Thus, builders will finish their projects on time and hand homes over to buyers.

• Quality assurance: Under the banner of RERA, the entire scheme of quality construction is executed. Hence buyers can be ensured of quality in the property they buy.

• Redressal of grievances: In case of any problem occurring to the buyer post-purchase, it is really easy to go back to the state authorities for redressal of grievances.

RERA is improving transparency, accountability, and fairness in the real estate sector, providing not only the benefits but also satisfaction and security for buyers and builders alike regarding registration.

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What does it mean when a project is blocked by RERA?

 

When RERA blocks a project, it usually means that the project is suspended on grounds of its non-compliance with the edicts of RERA. This blocking can arise due to the following reasons:

 

-Failure to obtain requisite approvals

-Failure to adhere to the stipulated timelines

-Complaints lodged by buyers in regard to the status of the project

 

A project that is blocked may not resume construction or commence sales until all compliance issues have been duly rectified and the block has been lifted by RERA. Such a mechanism is invented for the very protection of consumers from builders who adopt illegal and non-ethical modes of project completion.

 

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How long does it take for RERA registration?

RERA registration processing time varies, depending on state laws and how easy or difficult the application form is to fill. In most cases, RERA undertakes the processing of submission of applications within a period of 30 days, provided that all necessary papers have been efficiently processed and passed upon receipt. If there are discrepancies or further questions, the time taken may extend considerably. An applicant must therefore ascertain proper documentation and completeness to counter delays in the registration process

 

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What are the documents required for RERA agent registration?

To register with RERA requires a number of documents. Such documents may include:

 

• A valid identity proof (most likely an Aadhaar card or passport)

• Photo proof of your name and address is essential

• Educational qualifications should include certification of relevant real estate training

• A recent passport-sized photograph should also be submitted

 

The states may also require a sworn affidavit that you have not been accused of any criminal offense under the real estate transactions. Therefore, it is prudent for you to peruse the guidelines of your particular state involved so that you know beforehand what documents you may be required to prepare.

 

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Steps to apply RERA registration?

Every state has its own RERA registration procedure that requires the following:

 

1. Visit the official website of the Real Estate Regulatory Authority in your state.

2. Fill in the online application form with all particulars about yourself and your business accurately.

3. All documents need to be uploaded as prescribed in the guidelines available on the website.

4. After submission, the applicable fee needs to be paid through the designated payment gateway.

5. Finally, track the application progress through the portal until you get confirmation of your registration. 

 

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What does RERA registration mean?

 

RERA registration is carried out to start the registration of residential projects for new developers, the threshold of which exceeds a particular number of units (generally beyond eight) or the floor area exceeding a specified limit (usually above 500 sq. meters). Any real estate agents facilitating transaction in property with registered projects should also be registered under RERA. The regulation is framed with the intent to increase transparency and accountability in real estate transactions.

 

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In what way will RERA affect builders?

 

RERA will have a big impact on builders as it brings more stringent compliance to regulations for buyers’ welfare. The builders would have to provide complete information for the project beforehand regarding planned timelines and financial disclosures, among other things. To this end, any non-compliance may result in a penalty or even lead to imprisonment for fraudulent practices. In addition, the builders would need to bear the brunt of delays in project completion; they will be liable to intervene where deadlines have not been adhered to without good reason and compensate the buyers. Overall, it induces increased operational transparency and consumer trust yet imposes more onerous responsibilities on builders.

 

To check if the project is RERA-approved, you should:

 

1. Go to the official website of the respective states or region's real estate regulation authority, as RERA has its jurisdiction over India on both national and state levels.

2. Here, you can find a sub-topic called "Registered Projects" or "Project Registration."

3. Provide information in a search box-such as the name of the project, name of the developer, or the registration number.

4. The information for the project relating to which the application for an inquiry has been made, such as its registration number, its validity period, etc., will appear in the results of the search.

5. Check for the authenticity of information provided by the developer.

6. You may also contact RERA offices directly if unable to verify through online resources.

7. Check the website regularly for updates or notifications regarding a change in the project status.

 

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Does RERA registration ever expire?

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• RERA grants a registration generally for a period of five years from the date of granting clearance and may be renewed.

• Developers need to complete the project during the validity of RERA registration; otherwise they must apply for extension/renewal.

• If for any reason the project fails to be completed in time, RERA has the authority to penalize the developer or cancel the registration.

• Furthermore, developers must comply with all mandatory provisions during the validity period to keep their approval status.

 

Therefore, it is important for buyers to find out if the registration of a project is still valid before investing.

 

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What is meant by RERA interest rate?

The interest rate, in terms of RERA, is reported mainly on late possession of property or late payment defaults:

• As per the guidelines, in case of delayed possession of the property by a builder, they become liable to pay interest to buyers at a rate specified in the agreement with them.

• It is generally the SBI MCLR (Marginal Cost of Funds based Lending Rate) plus an additional X%. The X generally stands around 2%.

• The actual percentage may, however, vary per state regulations and the specific agreement between builders and buyers.

• Buyers should have a look at their sale agreements for exact mentions of interest rates applicable in case of delays.

• It would be better for interested buyers to keep these rates in mind while entering into agreements with developers.

 

 

What are the 3 RERA-related accounts?

According to RERA regulations, the three main accounts which builders need to maintain are:

 

1. Project Account: This will be an account where all the money for construction for that particular project should be parked and will be used purely for that purpose.

2. Escrow Account: 70% of the amount received from buyers should be kept in an escrow account until the construction is completed. This will guarantee the correct utilization of funds.

3. Separate Bank Account: Builders should have separate bank accounts under the name of different projects for transparency and financial accountability.

 

These accounts help safeguard the interests of buyers with respect to the fact that their money is not misused and that the project continues progressing.