Introduction
In India, the real estate sector plays an important role in meeting the housing and infrastructure growth needs and demands. Although this sector has developed rapidly in recent years, it has been largely unregulated, given the absence of professionalism and standardization in India where there is a state apartment act. The lack of effective consumer protection system culminated in the unscrupulous builders abusing and profiting. The Real Estate Act will thus protect buyers 'interests and will also give the sector much-needed impetus.
The Real Estate (Regulation and Development) Act, 2016 introduced to register residential real estate projects with a view to creating regulatory authorities at the state level and seeks to regulate contracts between buyers and sellers in the real estate sector to ensure effective and transparent selling of plots, apartments or buildings, etc. It also recommends ensuring greater transparency to customers and considerably reducing fraud and delays, as well as the current high transaction costs.
It seeks to balance the needs of both, by imposing those duties on buyers and promoters. It seeks to create the following:
- ease of communication between the Promoter and the Purchaser;
- the high degree of contractual terms transparency;
- set minimum accountability standards; and
- fast-track process for dispute resolution.
Benefits of registration
âž² Registered project or agent will bond under-delivery timeline
As per the bill, developers will be governed by strict regulations to ensure that construction runs on time, and flats are delivered on a specified date.
âž² Registered projects and agent will provide true and accurate detail
As per the bill, there can’t be changes to the registered plan
âž² Registered project or agent bonds to the built project in the proper structure
âž² No project can be advertised without RERA registration
âž² The amount to be paid by the buyer has been reduced from 20% to 10%
Applicability of registration:
âž² Commercial and residential real estate agent
Agents who facilitate selling and purchasing properties need to get register.
âž² Commercial and residential projects
All projects exceeding 500sq mtr or having more than 8 apartments mandatorily need to gets register.
âž² Local promoters with small projects
âž² On-going projects not having completion certificate
An on-going project without completion certificate need to apply for registration within 3 month
Procedure and Documentation for project registration
Documents required for project registration;
âž² Promoters detail, ID, Address, Photograph and contact detail (if the promoter is individual)
âž² In case promoter is company form or partnership form then the detail of all directors or partners
âž² Copy of Aadhar, PAN of promoter
âž² Approval copy from the competent authority
âž² Development plan
âž² Detail of projects like layout sanctioned plan, location, etc.
âž² Designing detail, construction detail, the technology used,
âž² IT returns and audited Balance sheet of the last 3 years
âž² Chain of the title along with title deed
âž² Architect, engineer, and other detail
âž² Other relevant documents per the demand of authority
Process of registration (for projects):
Step1. Call board meeting and pass the respective resolution for
- Opening of the separate bank account to cover the cost of construction
- Filing of RERA registration
- Approval of allotment letter, sale agreement an sale deed
Step2. Fill the project registration form
Fill the required details
- Project name and category (Residential/ commercial)
- Project cost
- Project location (Latitude and Longitudinal direction)
- Sanctioned plan detail
- Other relevant detail
Step3: Upload Documents
- CA certificate
- Architect certificate
- Structural engineer certificate
- Allotment letter
- Waste disposal plan
- Waste supply plan
- Electricity supply plan
- NOC from the fire department
- NOC from NGT /NHAI and other required authority
- Other relevant documents
Step4: Make payment
After filing the registration form, do the review of form and then make payment for the registration.
Step5. File application with authority respective with state
After submission, there will be verification and inspection of the project site/ plan and all information and documents attached with the form. If the application gets approved then a registration number will be allocated for the project.
Procedure and Documentation for Agent registration
Documents required for Agent registration:
âž² Real estate agent detail such as name, address, contact details, etc
âž² PAN & Aadhar copy of the agent
âž² Address proof copy
Process of registration (for agent)
Step1. File application with state authority
Fill the required information;
- Name
- Address
- PAN detail
- Aadhra detail
- Bank Account detail (if needed)
Step2: Upload the required documents
- Aadhar copy
- PAN copy
- Photograph
- And other related documents as per requirement
STEP4: Payment of registration fees
After submission of the application, the applicant needs to pay the required registration fees for the registration through available payment channel mode.
Step5: Verification of information and uploaded documents
After filing the required form, the concerned department will verify the uploaded documents and information, and the department may raise clarification if needed, or else the application will be accepted.
Step6. Registration number
Once the application gots accepted agent will receive a registration number.
Step7. Maintaining records
Maintain books of accounts, and other transaction-related to sale and purchase (quarterly)
Step8. Update the sale detail
Provide detail of completed deal to authority like buyer detail, transaction detail
Consequences of non-registration
On non-registration, there is the penalty of upto 10% of 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.