To market, display, sell, buy, or book residential properties, promoters, developers, and real estate brokers must first register with RERA. In addition, eligible individuals must submit applications in the approved form, together with the required supporting papers and payments. From the viewpoint of the builders, we will discover how to get RERA Registration in this particular article.
What are RERA and RERA Registration?
All builders of real estate projects larger than 500 square meters or with more than 8 flats are required by the Real Estate (Regulation and Development) Act of 2016 to record their initiatives with the relevant State RERA agencies. Before initiating the formal advertising and marketing of a project, builders must license themselves along with all their advocates under the Act. Only proposals with fewer than eight intended flats for redevelopment and geographical size of fewer than 500 sq mt are excluded from the RERA registration requirement. Also excluded from the tax are initiatives to restore, rebuild, or reconstruct that do not include marketing, selling, or the new allocation of any land, structure, or residence.
So, why was RERA needed?
The RERA Act was enacted by the Indian government in the year 2016 to promote openness in land transactions (purchases and sales). The main purpose of the act is to satisfy the needs of homebuyers, dealers, realtors, and other interested parties in the real estate sector. Since the act’s introduction, it has been amended several times. As a result, all interested parties must be aware of how RERA relates to the real estate industry. There was no openness or responsibility in the real estate industry before the advent of the RERA. Furthermore, transactions with regulatory bodies like the SEBI, IRDAI, and TRAI were not taken into account.
In May 2016, the Real Estate (Regulation and Development) Act of 2016 (RERA) went into effect. All organizations, facilitators, and other permitted entities must get this type of registration as a result of this law.
Who can apply for RERA registration in 2022?
- Anyone who develops or wishes to establish an independent structure or an apartment complex.
- Alternatively, a man or business interested in renovating existing residences to resell them to someone else.
- Anyone and everyone who transforms land into a project to sell it to others.
- Any development corporation organization about beneficiaries of structures or plots erected by such agency or public authority on land owned by them or put at their discretion by the administration Development agency holding lands or put at their disposition by the administration to market flats
- A rudimentary cooperative housing organization or a state-level cooperative housing financing society that creates dwellings for its participants.
Benefits of RERA Registration for Builders
- Builders must advertise their initiatives by identifying numerous facilities and characteristics associated with projects that are still in the planning stages. The contractor is not allowed to make any alterations to the estimated plan under the Act. If a contractor is determined to be at blame, he or she might be required to pay 10% of the project’s costs or risk up to three years in prison.
- According to the Act, tight rules will be imposed on developers to ensure that work is completed on time and that units are supplied to clients on time. Furthermore, if the developer is unable to deliver the units on schedule, the customer is entitled to a return of the appraised value interest paid.
- Developers frequently entice consumers with discounted prices and pre-launch deals. As a result, the buyer, tempted by the offers, disregards the clearing and books or acquires a home. However, the purchaser does not receive the unit at the moment due to regulatory delays. This bill guarantees that developers get all the right documentation before marketing flats.
- The amount that the buyer must pay has been decreased from 20% to 10%, and it must be given only once the developer has registered the purchase agreement. Only if the client fails to pay three times may the contract be terminated. The buyer has the right to give a 15-day warning to the seller.
What is the registration process for RERA for builders?
Every builder must make an application to the appropriate Real Estate Regulatory Authority in the mode, format, timeframe, and fee stipulated by that Authority to register their development. The following information and documents must be included with the application by the builder:
- Concise information about the company’s business, along with the name, kind of business (corporation, collaboration, or sole proprietor), registration location, and the developer’s title and photograph.
- Data about the developer’s projects published in the last five years, as well as their current state. Information about any outstanding litigation or settlements on the developer’s part.
- For the stated project, a verified copy of the initiation certificate, as well as the necessary clearances from the respective competent Authority, are required.
- If the program is to be executed in stages, the relevant competent Authority must provide an authorized copy of the criteria mentioned for each stage of the project.
- The approved layout design, approved plan, and requirements for a certain phase or planned development, as approved by the appropriate authority.
- All economic development of the state has to be done on the project.
- The longitudinal measure and degree of the project’s ends, as well as the specifics of the delineation of land to be utilized and its borders.
- Preliminary for the sales contract, certificate of allotment, and transference deed to be executed with project beneficiaries.
- The number, layout, and carpet surface of properties for rent in the project, as well as unique open patio spaces, verandahs, and exclusive balconies, if any are included in the unit for sale.
- Information about the size and number of garages available for purchase in the planned property. Individuals involved in the design and development process, such as the builder, constructor, real estate brokers, and design professional, should provide their names and photos.