The Real Estate (Regulation and Development) Act, 2016, or RERA, is a regulatory framework that governs the real estate industry in India. The aim of the act is to bring transparency and accountability to the real estate sector, which has traditionally been marred by fraudulent practices and lack of transparency.
One of the key provisions of the act is the requirement for all real estate projects to be registered with the regulatory authority established in each state. In this blog, we will take a closer look at RERA registration and its implications for real estate developers and buyers.
Who Needs to Register under RERA?
As per the provisions of the act, all real estate projects that meet the following criteria must be registered under RERA:
- Projects that are developed on a land area of more than 500 square meters or have more than 8 apartments.
- Projects that are developed on a land area of less than 500 square meters but have more than 8 apartments.
In addition to this, any ongoing real estate projects that have not received a completion certificate before the commencement of the act must also be registered under RERA.
How to Register under RERA?
The process of registering under RERA is relatively straightforward. Developers must fill out an online application form and submit it to the regulatory authority along with the required documents and fees. The application must include details such as the project’s location, the size of the land, the number of units, the expected completion date, and the developer’s details.
Once the application is submitted, the regulatory authority will verify the details provided and conduct a background check on the developer. If everything is found to be in order, the authority will grant a registration certificate, which is valid for the duration of the project’s completion.
Implications of RERA Registration
The implications of RERA registration are far-reaching for both real estate developers and buyers. Some of the key implications are as follows:
Transparency and Accountability: RERA registration brings much-needed transparency and accountability to the real estate sector. Developers must provide accurate details about the project, including the timeline for completion and the financials involved. This ensures that buyers are aware of all the details and can make an informed decision.
Standardized Practices: RERA has standardized practices in the real estate industry, which means that all developers must adhere to the same set of rules and regulations. This makes it easier for buyers to compare different projects and make an informed decision.
Protects Buyers’ Interests: RERA registration protects buyers’ interests by ensuring that developers cannot make false promises or mislead buyers in any way. The act also requires developers to deposit a certain percentage of the project cost in an escrow account, which can only be used for construction purposes. This protects buyers from the risk of developers diverting funds to other projects.
In conclusion
RERA registration is a crucial step in bringing transparency and accountability to the real estate sector in India. It protects buyers’ interests and ensures that developers adhere to a standardized set of rules and regulations. As a developer, it is important to ensure that your project is registered under RERA to avoid any legal hassles and build a reputation for transparency and accountability. As a buyer, it is important to look for RERA-registered projects to ensure that your investment is protected.
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Frequently Asked Questions (FAQs)
Q: What is RERA registration?
A: RERA registration refers to the process of registering a real estate project with the regulatory authority established under the Real Estate (Regulation and Development) Act, 2016. This registration is mandatory for all real estate projects that meet certain criteria.
Q: Who needs to register under RERA?
A: As per the provisions of the act, all real estate projects that are developed on a land area of more than 500 square meters or have more than 8 apartments must be registered under RERA. Projects that are developed on a land area of less than 500 square meters but have more than 8 apartments must also be registered.
Q: What are the benefits of RERA registration for real estate developers?
A: RERA registration brings transparency and accountability to the real estate sector, which can help build trust among buyers. It also helps standardize practices in the industry, making it easier for developers to operate. Additionally, RERA registration can help protect developers from legal hassles by ensuring that they adhere to a standardized set of rules and regulations.
Q: What are the benefits of RERA registration for buyers?
A: RERA registration helps protect buyers’ interests by ensuring that developers provide accurate details about the project, including the timeline for completion and the financials involved. It also protects buyers from the risk of developers diverting funds to other projects. Additionally, RERA registration standardizes practices in the industry, making it easier for buyers to compare different projects and make an informed decision.
Q: What is the process of RERA registration?
A: The process of RERA registration involves filling out an online application form and submitting it to the regulatory authority along with the required documents and fees. The application must include details such as the project’s location, the size of the land, the number of units, the expected completion date, and the developer’s details. Once the application is submitted, the regulatory authority will verify the details provided and conduct a background check on the developer. If everything is found to be in order, the authority will grant a registration certificate.
Q: What are the implications of not registering under RERA?
A: Real estate developers who do not register under RERA may face legal hassles, including fines and penalties. Additionally, buyers may be reluctant to invest in unregistered projects due to the lack of transparency and accountability in the sector.
