1. What is RERA? – Real Estate Regulatory Agency

RERA stands for Real Estate Regulatory Authority which is an act of the Parliament of India seeking to protect home-buyers and helps boost investments in the real estate industry. It is meant to bring transparency and accountability that would regain the lost faith of the people in the real estate industry. Through RERA registration, the real estate Act, 2016 established it in each state for regulation of the real estate sector and also acts an adjudicating body for speedy dispute redressal. This Act came into existence on 1 May 2016 with 59 of 92 sections notified. Within the period of 6 months, the central and state governments are liable to notify the rules under the Act.
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2. Registration of Projects under RERA

• The promoter has received completion certificate of the project prior to commencement of Act
• The area of land proposed to be developed does not exceed 500 sq. mt
• The number of apartments is not more than 8
• Any repair or renovation of an existing building or structure that does not require marketing, advertising and selling of any apartment or plot

3. RERA is application on promoters, project and real-sate agents subject to following conditions:

• The applicability of the Act has been extended to commercial and residential real estate (including plotted development)
• All the ongoing projects that have not received Completion Certificates have also been brought under the purview of the Act and such projects will need to be registered with the Regulator within 3 months.
• Prior registration is required to be taken from RERA under respective state laws by the Real estate agents who facilitate selling or purchase of properties. Registration certificate is valid of whole state / UT.

Application for registration must be approved or rejected within a period of 30 days from the date of application by the RERA

4. Documents required for registration under RERA

The following documents are required to be submitted in triplicate:

• PAN Card of the builder
• ITR of last 3 years and the balance sheet of the builder
• Builder must clarify about the apartment (carpet area, number of floors, parking space)
• Declaration by the builder of having legal title of the land with proof
• Details of the land (rights, title, mortgage)
• If the builder is not the owner of the land, the consent letter of the actual owner with documents will be required
• Details of the project (location, sanctioned plan, layout plan)
• Ownership documents (proforma of allotment letter, agreement of sale)
• Information of the persons involved (Architects, Engineers and others)

5. Objectives of RERA for Real estate

• Protect the interest of allottees and ensure accountability
• Ensure fair-play, maintain transparency and reduce frauds and delays
• To introduce professionalism as well as pan India standardization
• To establish informational symmetry between the promoter and allottee
• Impose responsibility on both promoter and allottees
• Enforce contracts by establishing a regulatory oversight mechanism
• Develop investor confidence by promoting good governance in the sector

6. Why to obtain RERA?

1. Time Delivery

Developers often make a false commitment about completion date of the project but it has been seen that the delivery is not on the time. According to the bill, a strict regulation is imposed on the developers. Therefore, if they don’t deliver the flats on time then the developer has to refund the purchaser with interest.

2. Accurate Project Details

Usually, builders promote their project by defining the various amenities and features of the project. As per the bill, No changes can be made to the plan and in case a builder is found guilty then there will be the penalty of 10 % of the cost of a project or even can be sentenced to jail for up to 3 years.

3. All Clearances

The bill indicates that developers get all the clearances before selling flats because due to the delays on getting clearance, the buyer does not get the flat on the time.

4. Proper Structure

In case the buyer finds any structural deficiency in the development of the building, then the developer is responsible for repair structural defects up to 5 years.

5. First RERA Registration, Then Advertisement

No permission to advertise any project before RERA registration with Real Estate Regulatory, the authority established under this act. A RERA registration number has to be carried by the advertiser.

6. Booking Amount

The buyer’s amount has been reduced from 20% to 10%, which should be paid only after registering the agreement for sale with the builder. The Buyer is entitled to a 15-day notice.

7. Professionalism

RERA is strengthening the real estate industry and is also helping it attain a certain degree of professionalism. The regulatory act will make it an option for people to join the real estate sector.

8. Complaints

RERA registered brokers and promoters are also empowered to complain the authority regarding any matters.