Real Estate Regulatory Authority (RERA) Registration is an apex regulatory body to control the affairs of Real Estate Industry in India and protect the interests of Real Estate buyers & investors.
The RERA was very recently established on 1st May 2016 after passing of the Real Estate (Regulation and Development) Act, 2016 in the Parliament. the main objective of the RERA Registration is to ensure complete transparency of real estate developers, contractors, builders, agents, brokers & property dealers and to ensure the safety of the investors’ funds.
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In India, the Real Estate Sector plays a significant role in satisfying the demands and needs for affordable infrastructure and housing. Hence, this sector acts as a tower of strength for our Indian Economy. It is noteworthy to take into consideration that although this industry has grown-up considerably in recent years. However, prior to RERA 2016, this sector was mainly unregulated, with a lack of professionalism, transparency, standardization, and most importantly consumer protection. Also, there were no sectoral regulator for this sector like SEBI, TRAI, IRDAI, etc.
The Real Estate (Regulation and Development) Act, 2016, (RERA) was enforced on 01 May 2016. The RERA Act was implemented to bring accountability, transparency, and unambiguousness to the real estate sector. Due to this Act, it is now obligatory and compulsory not only for all the Real Estate Projects but also for the Real Estate Intermediaries and Agent to get themselves registered under this act, i.e., obtain RERA Registration.
As per the recent report issued by the IBEF (Indian Brand Equity Foundation), in the month March 2020, by the end of the year 2040, the Indian Real Estate industry is projected to escalate to US $ 9.30 Billion (Rs 65,000 crores) from US $ 1.72 billion (Rs 12,000 crores) of the year 2019. Besides this, the market size of the Indian Real Estate Sector is anticipated to reach US $ 1 Trillion by the end of 2030 from US $ 120 Billion in the year 2017.
Similarly, by the end of the year 2025, the real estate sector will contribute around 13 percent of the country’s total GDP (Gross Domestic Product). Also, various other real estate sectors such as the retail, commercial, and hospitality are offering the much-required substructure for India’s increasing requirements. Lastly, the Indian Real Estate Industry is expected to upsurge by 19.5 percent CAGR (Compound Annual Growth Rate) from the year 2017 to 2028.
According to the data released by the DPIIT (Department for Promotion of Industry and Internal Trade Policy), the construction industry is the fourth largest industry in India, in terms of inflow of FDI (Foreign Direct Investment). Also, FDI in the real estate sector including the construction activities and development amounted to US$ 41.53 Billion from the year April 2000 to the end of December 2019.
The Real Estate Sector has always played a crucial role in strengthening our Economy both Financially and Industrially by offering affordable infrastructure and housing projects. As a result, the standard of living of our citizens has improved significantly. However, there were a few occurrences that provided a clear picture before the administration with regard to an imperative necessity to implement a law that will particularly deal only with the Indian Real Estate Industry.
These instances include undue delay in the project completion, no sectoral regulators like SEBI, IRDAI, TRAI, etc. However, the most significant was that the consumers of the Real Estate industry prior to the enforcement of RERA Act used to approach the consumer courts under the Consumer Protection Act, 1986, for the grievance redressal, but the said alternative was just curative and not suitable to address all types of concerns that a buyer had. Hence, the Real Estate Act, 2016 was enforced to safeguard the interest of buyers, and to also provide the much-needed impetus or motivation to the sector.
The following listed are the key objectives of the RERA, 2016:
The listed below are the Key Impacts of the RERA Act on the Real Estate Industries:
The following listed is the Applicability of RERA Registration:
The details and documents that are required for obtaining RERA Registration of a Promoter Company are as follows:
The details and documents needed for the RERA Registration of a Promoter or Builder as an Individual are as follows:
The details and documents needed for the RERA Registration of the Real Estate Agent are as follows:
The main objective behind the introduction of the RERA Act was to ensure full transparency in the real estate projects.
Developers having RERA registration has to post all details like project-plan, layout, govt. approvals, etc. which is then passed to buyers.
All complaints or grievances regarding any builder, developer or real estate agents is directly redressed by RERA.
RERA registration covers all commercial & residential projects. Besides, there is separate RERA registration for agents and builders,
No doubt, the RERA registration gives assurance of the credibility of the builder. Generally, buyers prefer to deal with the builders who have RERA registration.
RERA registration allows the buyers or investors of real estate to be able to get full details related to the builders or developers.
Upload the required documents & information to our web portal
Consult our business advisor on how to get RERA registration number.
Our professional will verify the validity of documents & Information provided.
On Confirmation, make online payment of RERA registration fees.
Our professional will prepare and submit the application with jurisdictional RERA authority.
On successful verification, the authority shall issue RERA license.
If in case the buyer, builder, or the real estate agent fails to abide by any of the prescribed RERA’s rules, then the listed below penalties will be pertinent:
In the case of Promoters
Non-registration of the projects
10 percent of the project’s total estimated cost
Providing untrueand false information
5 percent of the project’s total estimated cost
Infringement of the prescribed laws
Imprisonment up to three years, or a fine of 10 percent of the total estimated cost of the concerned property, or even both
In the case of Buyers
Non-compliance with the guidelines prescribed by RERA
Day-to-day penalty up to 5 percent of the estimated cost of the concerned real estate project
Non-compliance with the order or the directions passed by the Real Estate Appellate Tribunal
Imprisonment up to one year, or 10 percent of the estimated cost of the concerned project, or even both
In the case of Real Estate Agents
Non-registration of the projects
Rs. 10,000 every day up to 5 percent of the total approximate cost of the concerned project
Non-compliance with the guidelines issued by the RERA
Day-to-day penalty up to 5 percent of the said project’s total estimated value
Non-compliance with the order or the direction passed by the Real Estate Appellate Tribunal
Imprisonment up to one year, or 10 percent of the said project’s total estimated cost, or even both
The term “RERA” stands for the Real Estate (Regulation and Development) Act, 2016. It acts as the regulatory force for the real estate sector in India. The reason behind the enforcement of this act was to set up a Real Estate Regulatory Authority in each district and state.
Yes, the RERA Act comprises of all types of Real Estate Projects, ranging from residential to commercial projects. Further, the term “Commercial Project” includes shops, offices, shopping complexes, and buildings.
Yes, the provisions of the RERA Act 2016 are applicable to the On-going Projects as well. The term “On-going Project” means the project that has not received COC (Certificate of Completion).
Yes, it is mandatory for all the projects to get themselves registered with the RERA Authority within three months starting from the date of the enforcement of the act.
Yes, it is mandatory for every builder, developer, and promoter to acquire RERA Registration under the RERA Act. The builders who have not acquired RERA Registration will not be able to sell their projects to prospective buyers.
No, a developer cannot leave a real estate project in half-way, as he/she will have to bear the penalties and fines.
In such a case, the Government will allot another RERA Tribunal to hear the said appeal.
No, in any circumstance other than Natural Calamity, RERA registration cannot be extended further for builders. However, in the case of a calamity, the period cannot extend 1 year.
Just like RERA Registration for Promoters, Real Estate Agents also need to pay a fee for RERA Registration. The fee for registration varies from one state to another.
The RERA (Real Estate Regulatory Authority) bill was drafted in the year 2013. However, the same was passed in the upper house (Rajya Sabha) on 10. 03. 2016, and by the lower house (Lok Sabha) on 15. 03. 2016. Further, the RERA act was completely enforced on 01. 05. 2016.
Yes, the RERA Act, 2016, is prevalent in all the Indian states.
No, the RERA Act, 2016, does not cover the purchase and rental agreements, and the agreement in any other form within its ambit.
Yes, the revocation of RERA Registration is possible in case a complaint is filed against the developer or builder with the RERA Authority. Moreover, the revocation of RERA Registration is also possible when either developer or promoter does not properly adhere to the provisions of the RERA Act 2016 or the guidelines issued by the RERA Authority.
The objectives of RERA Act 2016 include setting up of RERA Authority; promoting genuineness, accountability, and efficacy in the sales of real estate projects; protection and safeguarding of the consumers rights; establishing adjudging machinery for the speedy dispute settlement; and establishing Real Estate Appellate Tribunal to hear appeals.
All the real estate projects which are having a land area of more than 500 sq. meters, or is having more than 8 apartments need to obtain RERA registration on a mandatory basis.
No, there is no need for an individual to be present at our office as the entire procedure of RERA registration is 100% online. The only thing needed is a scanned copy of all the documents sent by way of mail.
If in case a real estate agent violates the provisions prescribed under the RERA Act 2016, he/she will be liable to pay the penalty for everyday of the violation caused. The sum of the same can increase up to 5% of the unit’s total estimated cost.
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