The Real Estate (Regulation and Development) Act (RERA) 2016 is a powerful law in India that aims to regulate the real estate sector and protect the interests of homebuyers.
One of the key provisions of the RERA Act is the mandatory registration of real estate projects.
In this article, I will dive into the registration requirements for Real Estate Projects in RERA Act 2016.
Registration requirements for Real Estate Projects in RERA Act
Applicability of Registration Requirement
The registration requirement applies to residential and commercial real estate projects, including plotted developments, group housing schemes, commercial complexes, and mixed-use projects.
It covers projects that exceed the size or number of units specified by the respective state’s RERA authority.
Developer Registration under RERA
Under Section 4 of the RERA Act, developers must register with the state’s Real Estate Regulatory Authority (RERA) before commencing any real estate project.
The developer must provide all the crucial details and documents about the project for the registration process.
Project Registration under RERA
Once the developer is registered, the next step is to list the real estate project with the state’s RERA authority.
The application for project registration must include project details, land title details, layout plans, estimated project cost, approvals obtained, and other relevant documents.
Document Submission and Fee
The developer must apply for project registration along with the prescribed fee, as specified by the respective state’s RERA authority.
The application can be submitted online or through the designated offline mode.
Verification and Scrutiny:
Upon receiving the application, the RERA authority verifies the provided information and examines the documents submitted.
This step ensures that the developer has complied with all the legal and regulatory requirements as per the RERA Act.
The authority may also conduct site inspections if required.
Grant of Registration:
If the RERA authority is satisfied with the developer’s application and finds it compliant with the RERA Act, it issues a registration certificate for the real estate project.
The certificate signifies that the project has met all the requirements under the RERA Act and is eligible for marketing, selling, or advertising the units.
Display of Registration Details:
After obtaining the registration certificate, the developer must display the registration details, including the registration number, on all advertisements, prospectus, and project-related communications.
The above ensures transparency and allows homebuyers to verify the project’s registration status.
List of documents required for real estate project registration in the RERA Act
The registration of real estate projects under the RERA Act 2016 requires submitting various documents to the state’s RERA.
These documents provide essential information about the project and ensure compliance with the provisions of the RERA Act.
Here is a list of the documents for Registration Requirements for Real Estate Projects in RERA:
Promoter’s Details:
- Â Promoter’s PAN card and address proof
- Promoter’s photograph
- Promoter’s contact details
Project Details:
- Project name and address
- Proposed layout plans, site plans, and floor plans
- Details of land ownership, including the ownership documents and title deed
- Development agreement, if applicable
- Details of the development timeline
- Details of the project’s proposed amenities and facilities
Financial Information:
- Estimated project cost
- Details of the funds available for the project
- Audited balance sheets, profit and loss statements, and cash flow statements of the promoter for the last three financial years.
- Details of any loans or encumbrances on the project
Approvals and Permissions:
- Copies of the necessary approvals, permissions, and clearances acquired from the concerned authorities, such as building plan approvals, environmental clearances, etc.
- No Objection Certificates (NOCs) from relevant authorities, as required
- Commencement certificate, if construction has already begun
Details of the Real Estate Agent(s) (if applicable):
- Registration certificate and details of the real estate agent(s) involved in the project,
- Agreement between the promoter and real estate agent(s).
Legal Documents:
- Memorandum of Association (MOA) and Articles of Association (AOA) of the promoter entity,
- Partnership deed, if applicable,
- Copy of the registered entity/ firm/ company.
Any other documents for Registration Requirements for Real Estate Projects in RERA as mandated by the RERA authority:
- Each state may have specific additional document requirements, which may vary.
It is important to note that the exact list of required documents may differ slightly based on the specific state’s RERA rules and regulations.
Therefore, developers should consult the RERA authority or their official website for the most accurate and up-to-date information regarding the required documents for project registration.
Submitting all the necessary documents ensures transparency, regulatory compliance, and protection of the interests of homebuyers in the real estate sector under the RERA Act 2016.
Section 3 of the RERA Act 2016
Section 3 is a crucial provision that outlines the registration requirements for Real Estate Projects in RERA before advertising, marketing, selling, or offering them for sale.
Here is an explanation of the key aspects of Section 3 of the RERA Act 2016:
Registration of Real Estate Projects:
Section 3 mandates that the developers or promoters of real estate projects must register their projects with the state’s RERA authority.
The above applies to residential and commercial projects, including plotted developments, group housing schemes, commercial complexes, etc.
Threshold Criteria:
The provision applies to projects that exceed the size or number of 8 units or 500 sq.m. as specified by the RERA Act.
Prohibition on Advertising and Sale:
Section 3 explicitly prohibits developers from advertising, marketing, selling, or offering for sale any apartment, plot, or building in a real estate project not registered under the RERA Act.
The above provision ensures that developers cannot promote or sell illegal projects before scrutinising and compliance with the RERA Act.
Consequences of Non-Registration:
If a developer fails to follow the registration requirements for Real Estate Projects in RERA under Section 3, it can have several consequences. First, the developer may be liable for penalties under the RERA Act.
Second, non-registration will result in the inability to promote, market, or sell the units in the project until the developer acquires the registration certificate.
Homebuyer Protection:
The primary purpose of Section 3 is to protect the interests of homebuyers by ensuring transparency and accountability in the real estate sector.
It provides homebuyers with essential information about the project, such as project details, timelines, approvals obtained, and the developer’s background, enabling informed decision-making by mandating project registration.
Exceptions for Non-registration:
The developer is not liable to follow the registration requirements for real estate projects in RERA if the real estate project has below eight units in all phases or is under 500 sq. m.
Also, the developer requires no registration if he has received the registration certificate concerning the project.
The developer is liable for registering his project for renovation, repair or re-development. However, if he is doing marketing, advertising, selling or new allotment of any apartment, plot or building in such project, he shall register the project with the RERA.
Promoting Regulatory Oversight:
Section 3 of the RERA Act establishes a regulatory framework requiring developers to register their projects with the state’s RERA authority.
The above enables the authority to oversee and regulate the real estate sector.
The registration process allows RERA authorities to verify project-related information, ensure compliance with the RERA Act, and protect the interests of both developers and homebuyers.
Developers must understand and comply with Section 3 of the RERA Act 2016 to fulfil their obligations, maintain transparency, and provide consumer protection in the real estate market.
Homebuyers can also rely on this provision to ensure that the projects they are interested in are duly registered and meet the necessary regulatory requirements.
Importance of Registration under RERA
Homebuyer Protection:
The primary objective of project registration under RERA is to safeguard the interests of homebuyers.
The registration process ensures that developers provide accurate information, maintain transparency, and fulfil their obligations towards the buyers.
It empowers homebuyers with essential information about the project, including details of the developer, project timeline, and amenities.
Preventing Fraud and Delays:
RERA’s registration requirement acts as a deterrent against fraudulent activities and illegal projects.
It helps to remove instances of developers misrepresenting facts, diverting funds, or delaying project completion.
The registration process encourages developers to adhere to timelines and deliver projects as promised.
Dispute Resolution Mechanism:
Registered projects provide everyone with the benefits of the dispute resolution mechanism provided under the RERA Act.
If any disputes or grievances arise between the developer and the buyer, RERA provides a platform for resolution, ensuring fair and timely redressal.
Promoting Transparency and Accountability:
Registration under RERA promotes transparency and accountability in the real estate sector.
It establishes a framework for developers to provide accurate information and protects buyers from misleading marketing practices.
The Act also mandates periodic updates from developers to the regulatory authority and buyers, ensuring transparency throughout the project’s lifecycle.
Conclusion
The registration requirements for real estate projects in RERA play a crucial role in regulating the real estate sector and protecting the interests of homebuyers.
It ensures transparency, accountability, and legal compliance in real estate projects. Developers must understand and comply with the registration process.