Documents to be submitted for registration of Real Estate Project under RERA, 2016

Real estate sector in India had many disputes existing between home buyers and developers. To resolve such disputes, the Indian government introduced the RERA Act, on 1st May, 2016. The Real Estate Regulation and Development Act, 2016 (RERA) came into full force on 1 May 2017 across India and 52 sections were notified in 2016. The Real Estate (Regulation & Development) Act, 2016 has included a provision in relation to establishment of a state level Real Estate Regulatory Authority (RERA). The objective is to regulate the real estate sector and solve disputes in relation with real-estate projects. This article briefly describes the Registration of Real Estate Project under RERA, & Documents Required for RERA Registration under RERA.

What is RERA?

RERA stands for Real Estate Regulatory Authority which came into force as per the Real Estate (Regulation and Development) Act, 2016. It stands for the transparency and to boost investments in the real estate sector.

RERA is a central law that requires all real estate projects to register with the regulatory authority. It applies to both residential and commercial real estate projects, including apartments, plots, and commercial buildings. The law was enacted to address issues such as delayed projects, fraudulent practices, and unfair practices in the real estate sector.

Applicability of RERA

There are few conditions which determine whether a project falls under purview of RERA or not:

If the area of land for the project proposed to be developed does not exceed 500 square meters or the number of apartments proposed to be developed does not exceed 8 inclusive of all phases, then such projects are not required to apply for registration under RERA. For renovation or repair or re-development to be done no registration is required which does not involve marketing, advertising selling or new allotment of any apartment, plot or building. Where the Promoter has got a completion certificate for a Real estate project before the commencement of RERA.

Types of RERA Registration 

The following are the types of RERA Registration:

• Project Registration: Under this registration it has been mandated for the promoters to get their project registered under RERA in order to sale or offer to sale units of the project to prospective buyers. Promoters need to submit an application along with prescribed documents and fees for registration of the project.
• Promoter Registration: Under this registration the promoters would need to make an application to get enlisted with RERA. A promoter presents his own data along with his project data.
• Real estate agent Registration: Agents are compulsorily required to get themselves registered under RERA in order to sale units of projects which are registered under RERA.

Why registration under RERA is required?

As per the RERA Act, no promoter shall advertise, book, sell, market, offer for sale, invite any persons to purchase any apartment, plot, or building in real estate project in any planning phase, without registering the real estate project with the RERA established under this Act. Imprisonment up to 3 years for promoter and up to 1 year in case of agents and buyers for violation of any terms as per RERA,2016.

Importance of RERA

The implementation of RERA has brought significant changes in the real estate sector in India. Some of the key benefits of RERA are:

• Transparency: RERA mandates real estate developers to provide complete transparency in their projects by providing information on project status, completion date, and any changes to the project plan.
• Protection of Homebuyers: RERA has provisions that ensure homebuyers are protected from fraudulent practices, such as false promises, misrepresentation, and non-delivery of projects.
• Accountability: RERA has introduced a mechanism for grievance redressal, and developers are accountable to the regulatory authority for any delays or deviations from the project plan.
• Standardization: RERA has introduced standardization in the real estate sector by making it mandatory for developers to provide the same information and documents to all buyers.

Documents required for Real Estate Agent Registration

The following are the document required for Real Estate Agent Registration:

• PAN.
• Permanent address proof.
• Photograph.
• Details of real estate agent enterprise which includes its name, registered address, type of enterprise, proprietorship, societies, co-operative society, partnership, companies, etc.
• Particulars of registration of the enterprise such as the bye-laws, memorandum of association, articles of association etc. whatever the case may be.

Documents Required for RERA Registration under RERA, 2016

The following are the documents required for RERA Registration under RERA, 2016

• Promoter Details: The promoter needs to provide details of their PAN card, Aadhaar card, and other identification proof. Additionally, they must also provide details of their past projects, experience in the industry, and financial statements.
• Project Details: The promoter needs to provide detailed information about the real estate project they are undertaking. This includes the project’s location, size, number of units, and details of the proposed construction.
• Land Ownership: The promoter must provide proof of ownership of the land on which the project is being built. This includes land title documents, property tax receipts, and other relevant documents.
• Building Plan: The promoter must submit the building plan of the proposed project, along with the layout plan, site plan, and floor plans.
• Commencement Certificate: The promoter needs to provide a copy of the commencement certificate issued by the local authority. This certificate indicates that the construction of the project has been approved by the concerned authorities.
• NOC from Relevant Authorities: The promoter must obtain a No-Objection Certificate (NOC) from the local authorities, such as the fire department, water and sewage board, and pollution control board.
• Sales Agreement: The promoter must provide a draft of the agreement that they will enter into with the buyers. This agreement must comply with the guidelines laid down by RERA.
• Bank Account Details: The promoter must provide details of the bank account in which the project funds will be deposited. This account will be monitored by RERA to ensure that the funds are being utilized for the intended purpose.

How to Register Projects under RERA?

The process of Application for Registration of Real Estate projects is different from state to state. The RERA website of each state has a detailed procedure. The promoters and real estate agents have to apply for registration on the website itself which is relevant for their own state. 

The process to register projects under RERA is as follows:

• Step 1: Create an Account: The first step to register a project under RERA is to create an account on the RERA website. You can create an account by providing your basic information such as name, email address, and mobile number.

• Step 2: Fill in the Application Form: Once you have created an account, you need to fill in the application form. The application form requires you to provide details about the project such as the project’s location, size, number of units, and the expected completion date.

• Step 3: Upload Documents: After filling in the application form, you need to upload the necessary documents such as the title deed, building plan, and land-use certificate. You also need to upload the details of the architect, engineer, and contractor who will be involved in the project.

• Step 4: Pay Fees: Once you have uploaded all the necessary documents, you need to pay the registration fees. The fees for RERA registration vary from state to state, and you can find the details of the fees on the RERA website.

• Step 5: Obtain Registration Certificate: Once you have paid the fees, your application will be processed, and if everything is in order, you will be issued a registration certificate. The registration certificate contains details about the project, such as the project’s name, location, and expected completion date.

Important points to keep in mind while registration under RERA

The following are the important points to be keep in mind while registration under RERA:

• Registration Requirement: All real estate projects with more than eight units or a land area of more than 500 square meters need to be registered under RERA. It is mandatory for developers to obtain registration before commencing any project.
• Timeline for Registration: Developers must register their projects with RERA within three months of the law coming into force. Projects that have not been registered within the specified timeline will face penalties and may not be allowed to be sold.
• Compliance with RERA Regulations: Developers must comply with the regulations set forth in RERA, such as the submission of project details, financial disclosures, and timely delivery of the project. Any deviation from the regulations can lead to penalties and even imprisonment.
• Mandatory Disclosures: Developers must provide all relevant details of the project on the RERA website, such as the project’s layout, plan, timeline, and status. This is to ensure transparency and help buyers make informed decisions.
• Escrow Account: Developers must maintain a separate bank account for each project to ensure that the funds received from buyers are used only for that project. This helps prevent diversion of funds and ensures timely completion of the project.
• Complaint Redressal Mechanism: RERA has set up a complaint redressal mechanism to address any grievances that buyers may have with developers. Developers must ensure that their project is delivered on time and with the promised quality.

Conclusion

RERA registration is mandatory for developers who are planning to launch a new project or have already launched a project but have not yet received a completion certificate. The registration process involves creating an account on the RERA website, filling in the application form, uploading necessary documents, paying fees, and obtaining a registration certificate. By registering their projects under RERA, developers can ensure transparency and accountability in their projects, and homebuyers can have more confidence in investing in the real estate sector.