RERA Registration

Need for RERA Registration

RERA Registration is important for builders, developers, and real estate agents involved in projects that exceed 500 square meters or involve the construction of more than eight apartments. Here's why RERA Registration is necessary:

1. Transparency:
   Builders registered under RERA are required to keep homebuyers informed about the project's status, approvals, and delivery timelines. This transparency helps to build trust between the developer and the buyer, ensuring that progress reports are regularly updated.
2. Accountability:
   Under RERA Registration, developers are accountable for the commitments made at the time of project launch. If any deviation occurs, buyers have the right to seek legal recourse. Additionally, brokers and real estate agents are also bound by these laws, ensuring their accountability.
3. Uniformity:
   The RERA Act provides a standardized framework applicable across India, but its implementation is state-specific. While registration processes and compliance requirements may vary, all states operate under the same guiding principles, thereby maintaining uniformity.

Objectives of RERA Registration

The primary objectives of RERA Registration include:

1. Ensuring Security:
   To protect homebuyers' investments, RERA mandates that 70% of the money collected from buyers be kept in a separate account. This amount can only be used for the project's construction and land costs, significantly reducing the risk of funds being misappropriated.
2. Quality Assurance:
   Developers are responsible for any structural defects found within 5 years of possession. If issues arise, the builder must rectify them at no extra cost. Failure to do so may result in penalties, ensuring that quality standards are met.
3. Boosting Real Estate Investment:
   By offering a secure and transparent regulatory environment, RERA has increased investor confidence, promoting more investments in the sector. Buyers and investors can now make informed decisions, knowing that their rights are protected.
4. Transparency and Accountability:
   RERA mandates that developers disclose every detail of the project, from land status to approvals and project plans. Buyers are no longer kept in the dark, and developers are held accountable for their promises.
5. Grievance Redressal:
   RERA has established mechanisms to resolve disputes between buyers and developers. If a buyer is dissatisfied with the RERA Authority's decision, they can approach the Appellate Tribunal for further redressal.
6. Imposing Compliance:
   RERA implements strict compliance requirements on all real estate stakeholders. Developers, agents, and brokers must adhere to the regulations, failing which severe penalties can be imposed.

Impact of RERA Registration

RERA has revolutionized the real estate sector by:

1. Providing Right to Information:
   Buyers are entitled to comprehensive details about the project, ensuring they make informed decisions.
2. Charging Only for Carpet Area:
   Builders can only charge for the carpet area, not for balconies, lobbies, or parking spaces, preventing hidden costs.
3. Separate Bank Accounts:
   Developers must maintain a separate bank account for 70% of the project funds, ensuring they are used only for construction and land expenses.
4. Penalty for Project Delays:
   If a developer fails to deliver the project on time, they are liable to pay interest on the amount to the buyer.
5. Advance Payment Limit:
   Developers cannot take more than 10% of the property's cost as an advance without a sale agreement.
6. Consent for Project Alterations:
   Developers must seek approval from 2/3 of the project's buyers before making any structural changes.

Advantages of Registration of Real Estate Projects under RERA for Buyers

The implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA) has transformed the real estate sector by protecting the interests of homebuyers and ensuring transparency. Here’s how registration of real estate projects under RERA benefits buyers:

On-Time Possession of the Property

One of the major challenges faced by buyers was the delay in project delivery. RERA addresses this issue by mandating developers to declare an estimated completion date during registration. If the builder fails to hand over possession within the committed timeline, they are liable to pay penalties, providing buyers with assurance and peace of mind.

Accurate Project Details

Promoters registered under RERA are required to provide full and truthful disclosure of project details. This includes the layout, carpet area, amenities, project status, and timelines. Once declared, these details cannot be changed without the consent of allottees, ensuring that buyers get exactly what was promised.

Assured License Clearances

Before RERA, many builders used the excuse of pending government approvals to delay construction. Now, RERA makes it compulsory for developers to secure all required approvals and licenses before they can advertise or sell any unit. This protects buyers from being misled into investing in unapproved or non-compliant projects.

Repair of Defects

RERA mandates that the promoter must address any structural defects or poor workmanship noticed by the buyer within five years of possession. The promoter must rectify such defects at their own cost within 30 days of receiving a complaint, ensuring accountability and post-possession support for buyers.

Restricted Advertisement

Developers can only advertise or market their project after obtaining RERA registration. Moreover, the RERA registration number must be mentioned in all promotional material. This ensures that only legally approved projects are promoted, reducing the scope of false claims and deceptive marketing.

Controlled Booking Amount

Earlier, some builders used to demand high advance amounts at the time of booking, creating financial pressure on buyers. Under RERA, promoters can now only accept up to 10% of the property cost as the booking amount and that too only after executing a registered agreement for sale. This protects buyers from undue financial exposure.

Eligibility for RERA Registration

RERA Registration is mandatory for:

Developers/Promoters

A developer or promoter refers to any individual or company that constructs buildings, apartments, flats, or layouts for residential or commercial purposes. This includes private builders, cooperative housing societies, and even landowners involved in development through joint ventures. Under RERA, such promoters are legally required to register their real estate projects with the respective state RERA authority before advertising, marketing, or selling any property. This registration ensures that the project has received necessary approvals, land titles are clear, and timelines for completion are declared. The goal is to safeguard buyers from fraudulent practices, delays, or project abandonment. Additionally, developers must deposit 70% of the project funds collected from buyers in a separate bank account, which can be withdrawn only for construction and land-related costs. This regulation prevents fund diversion to other projects. Developers are also responsible for post-possession services such as addressing structural defects for up to five years. Failure to comply with RERA guidelines can result in heavy penalties, project registration revocation, or even imprisonment.

Real Estate Agents

Real estate agents, brokers, or middlemen involved in facilitating the sale or purchase of property must also register under RERA. This includes individuals, partnerships, and real estate companies. Their registration helps in creating a verified and regulated pool of agents who operate with ethical standards. Once registered, an agent receives a unique RERA registration number which must be quoted in every transaction, marketing material, or listing they handle. Unregistered agents are barred from participating in any sale or booking of properties in RERA-registered projects. This step is crucial in curbing malpractice, misleading information, and ensuring buyer protection. Moreover, registered agents must maintain proper documentation of every deal and follow RERA-prescribed processes, failing which penalties may be imposed.

Documents Required for RERA Registration

For Promoters/Companies:

• Memorandum of Association (MoA) and Articles of Association (AoA)
• Company Registration Certificate (Certificate of Incorporation)
• Business address proof
• Company PAN and TAN
• Details of directors and shareholders
• Previous real estate project experience
• Project details, including layout plan, location, and sanction plan

For Individual Promoters/Builders:

• PAN Card and Residential Proof
• Income tax details and audited balance sheets
• Passport-size photographs
• Email ID and contact information
• Information on previous projects

For Real Estate Agents:

• Agent’s name, PAN Card, and address proof
• Digital Signature Certificate
• Registration fee payment receipt
• Details of the agent’s district and state of operation
• Occupation and income tax details

Procedure for RERA Registration

RERA registration is a mandatory compliance for promoters and real estate agents involved in selling, marketing, or advertising real estate projects. While the process may vary slightly from state to state, the overall procedure remains broadly similar. Below is a detailed explanation of the RERA registration process, broken down into key steps:

Visiting the Official RERA Website of the Respective State

Each state and union territory in India has its own RERA authority and a dedicated online portal. To begin the registration process, applicants must visit the official website of the RERA authority in their respective state—for example, Maharashtra RERA (maharera.mahaonline.gov.in), UP RERA, Bihar RERA, etc. The website will provide access to registration forms, guidelines, and user manuals.

Filling Out the Online Application Form

The next step is to create an account and fill out the online registration form with the required project or agent details. For promoters, this includes project name, type (residential/commercial), total area, project location, past projects, and estimated completion timeline. For agents, basic details such as name, PAN, contact information, and business address are needed.

Attaching the Required Documents

After filling the application, the applicant must upload all mandatory documents. Promoters are required to submit land title documents, approved building plans, sanctioned layout, ownership details, commencement certificates, and financial statements. Agents must submit identity proof, address proof, business registration certificate (if applicable), and photographs. All documents should be in PDF format and within the allowed size limit.

Making the Prescribed Fee Payment

Every RERA registration application requires the payment of a non-refundable fee, which varies from state to state and depends on the size and type of the project or the status of the applicant (promoter or agent). The payment can be made online using net banking, UPI, or card services provided through the portal’s payment gateway.

Submitting Declaration and Other Required Information

Promoters must submit an affidavit-cum-declaration in Form B as part of the application. This includes a commitment that the project will be completed on time, funds will be used only for that particular project, and the title of the land is clear. This declaration ensures legal accountability on the part of the promoter.

Receiving a RERA Registration Number

Once the application and documents are verified by the state authority and all conditions are met, the promoter or agent will receive a unique RERA registration number and certificate. Only after this can the promoter advertise, market, or sell any units in the project legally.

Penalties under RERA Act

Non-compliance with RERA regulations results in severe penalties:

• Buyers: If buyers violate RERA rules, they may be fined up to 5% of the project's cost.
• Promoters: Unregistered promoters can face a penalty of up to 10% of the project cost. Misleading information or violation of norms can result in imprisonment or fines.
• Agents: Agents operating without RERA Registration face fines of Rs. 10,000 per day and may also be penalized for non-compliance.

RERA Agent Registration Exam in Uttar Pradesh and Maharashtra

To ensure professionalism and accountability in the real estate sector, several states have made it mandatory for real estate agents to pass an exam before obtaining RERA registration. Both Uttar Pradesh (UP) and Maharashtra have implemented structured examination procedures for RERA agent registration to enhance transparency and competence among brokers.

In Uttar Pradesh, the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has mandated that real estate agents must clear the RERA Real Estate Agent Certification Examination conducted by the National Institute of Real Estate Development (NAREDCO-UP). The objective of the exam is to test the agent’s understanding of the RERA Act, ethical business practices, fair dealings, and regulatory compliance. The syllabus includes topics such as the rights and duties of allottees, roles of promoters, penalties under RERA, and procedures for registration and renewal. After passing the exam, the agent receives a certification which is required for completing their registration on the UP RERA portal. This exam is conducted online, and the agent needs to register on the NAREDCO-UP platform to access study material and schedule the test.

Similarly, in Maharashtra, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has launched the MahaRERA Real Estate Agent Certification Program (REACP). Starting from 1st January 2023, it has been mandatory for all new agents applying for RERA registration and renewal to pass this exam. The test evaluates the agent’s knowledge of real estate laws, consumer protection guidelines, responsibilities under the RERA Act, and ethical business practices. The certification exam is conducted in collaboration with educational partners such as Maharashtra Real Estate Regulatory Authority Academy (MREA) and other training institutes. Agents must first complete an online training module before appearing for the test.

In both states, these exams aim to formalize the real estate profession, eliminate malpractice, and ensure that only qualified individuals act as intermediaries in property transactions. Once certified and registered, agents receive a RERA number which must be displayed in all marketing and transactional documents, thereby ensuring greater accountability and transparency in the sector.

Our Support

Compliance Calendar LLP offers expert guidance for a smooth RERA Registration process. Our services include:

• Expert Consultation: Our professionals provide personalized support and address all your queries regarding RERA Registration.
• Document Preparation: We assist in gathering and preparing all the necessary documents in the prescribed format.
• Hassle-Free Filing: Our team ensures your application is submitted without errors, minimizing delays.
• Quick Processing: We advance the registration process, ensuring minimal waiting time.
• Compliance Support: From obtaining licenses to managing ongoing compliance, we cover all aspects of RERA Registration.