RERA: Real Estate Regulatory Authority for Property Buyers

The Indian real estate sector has witnessed significant growth but also faced issues related to project delays, fraudulent practices, and lack of transparency. To protect homebuyers' interests and promote transparency, the Real Estate Regulatory Authority (RERA) was established.

In this comprehensive guide, we will cover the RERA Full Form, what RERA is, its objectives, the RERA Registration process, and how to check a RERA Registration Number. Whether you are a property buyer, builder, or real estate agent, understanding RERA is essential for informed decision-making.

What is RERA?

RERA stands for the Real Estate Regulatory Authority, established under the Real Estate (Regulation and Development) Act, 2016. It aims to regulate the real estate sector, ensure transparency, and safeguard the interests of property buyers.

•RERA Full Form: Real Estate Regulatory Authority

Objectives of RERA

The primary goal of RERA is to bring accountability and transparency to the real estate sector. Here are its key objectives:

1.Protect Homebuyers: Safeguard the interests of property buyers and ensure timely possession.

2.Promote Transparency: Eliminate fraudulent practices and ensure clarity in real estate transactions.

3.Regulate Builders and Agents: Mandate the registration of real estate projects and agents.

4.Dispute Resolution: Provide a fast-track mechanism for resolving disputes between buyers and builders.

5.Standardization: Promote standard practices in the real estate industry.

Why is RERA Important?

RERA has significantly transformed the real estate sector in India. Here's why it is important:

•Consumer Protection: Ensures that builders deliver projects as promised.

•Transparency: Buyers can verify project details and progress through the RERA Registration Number.

•Financial Security: Builders are required to deposit 70% of project funds in a dedicated escrow account.

•Accountability: Builders must adhere to project deadlines and avoid misleading advertisements.

•Legal Remedies: Buyers can approach RERA for quick dispute resolution.

Who Needs RERA Registration?

According to the RERA Act, the following entities must register:

1.Real Estate Developers/Promoters: Any builder or developer undertaking real estate projects.

2.Real Estate Agents/Brokers: Individuals or firms facilitating the sale or purchase of properties.

3.Ongoing Projects: Projects without completion certificates must register with RERA.

Types of RERA Registrations

1.RERA Registration for Builders/Developers: Mandatory for new and ongoing real estate projects.

2.RERA Registration for Real Estate Agents: Required for agents to facilitate legal and authentic transactions.

RERA Registration Process: Step-by-Step Guide

Step 1: Visit the State RERA Portal

Each Indian state has its own RERA website. Visit the official portal of the respective state.

Step 2: Create a User Profile

Sign up and create a RERA Login profile by entering basic details such as name, address, and contact information.

Step 3: Fill the Registration Form

Complete the RERA Registration form by providing the following details:

•Project details (name, location, type).

•Details of the promoter/builder.

•Legal title deed and ownership documents.

•Project timeline and development plan.

•Financial details and bank information.

Step 4: Upload Required Documents

•PAN card of the promoter.

•Proof of address of the business.

•Project plan approval from the competent authority.

•Income tax returns of the promoter for the last three years.

•Encumbrance certificate (no legal dues).

Step 5: Pay the Registration Fee

•The RERA Registration Fees vary from state to state and depend on the project size and type.

Step 6: Verification and Issuance

•Once the application is verified, the authority issues the RERA Registration Number.

Documents Required for RERA Registration

1.PAN Card of the builder or agent.

2.Proof of Address (Aadhar Card, utility bill, etc.).

3.Project Details including layout and plan approval.

4.Ownership Proof or legal title deed.

5.Income Tax Returns for the past three years.

6.Bank Details for financial transactions.

7.Development Plan and construction timelines.

How to Check RERA Registration Number?

It is essential to verify the RERA Registration Number to ensure the legality of the project.

Step-by-Step Guide to Check RERA Registration

1.Visit the State RERA Portal.

For example, https://maharerait.mahaonline.gov.in for Maharashtra.

2.Click on Registered Projects/Agents: Navigate to the section for registered projects.

3.Enter the RERA Registration Number: Or search by the project name or builder's name.

4.View Details: The portal will display details such as project progress, approvals, and legal status.

How to Verify a RERA Certificate Online?

1.Visit the respective State RERA Portal.

2.Log in using your RERA Login credentials.

3.direct to the verification section.

4.Enter the RERA Registration Number to verify the authenticity.

Penalties for Non-Compliance with RERA

•For Developers: Up to 10% of the project cost for non-registration.

•For Agents: A fine of ₹10,000 per day or up to 5% of the property cost.

•For False Information: 5% of the project cost.

•For Non-Compliance: Possible imprisonment up to three years.

Benefits of RERA Registration for Buyers

1.Transparency: Buyers can access all project-related information online.

2.Legal Assurance: Registered projects are legally verified and authentic.

3.Timely Possession: Builders are obligated to meet deadlines.

4.Financial Security: confirms safe and secure financial transactions.

5.Legal Remedies: Quick dispute resolution mechanism through the RERA tribunal.

Challenges in RERA Registration

•Complex Documentation: Accurate documentation is crucial to avoid rejections.

•Compliance Delays: Misunderstanding legal requirements can lead to delays.

•State-Wise Differences: RERA rules can vary between states, leading to confusion.

Tips for a Smooth RERA Registration Process

1.Understand Local Laws: Each state may have specific requirements.

2.Consult Experts: Engage legal or compliance consultants for hassle-free registration.

3.Document Verification: Ensure all legal documents are accurate and updated.

4.Track Progress: Regularly monitor the application status on the RERA Portal.

Final Remark

RERA Registration has brought a significant transformation to the Indian real estate sector. It not only protects the interests of property buyers but also ensures transparency and fairness in transactions. By obtaining a RERA Registration Number, builders and agents gain legal credibility, while buyers gain assurance about their investments.

If you are planning to invest in real estate, always check the project’s RERA Registration Number and ensure legal compliance. For builders and agents, completing the RERA Registration process is a step towards legal adherence and market trust.

Frequently Asked Questions (FAQs)

1. What is the RERA Full Form?

The RERA Full Form is Real Estate Regulatory Authority.

2. Why is RERA Registration mandatory?

It ensures transparency, protects buyer interests, and promotes accountability among builders.

3. How can I check the RERA Registration Number?

Visit the respective state’s RERA portal and search using the registration number or project name.

4. Is RERA applicable to all states in India?

Yes, but each state has its own RERA authority with specific registration procedures.

5. Can I file a complaint against a builder on the RERA portal?

Yes, you can file complaints through the respective state's RERA portal.

6. What is the penalty for non-registration under RERA?

Builders may face a fine of up to 10% of the project cost and possible imprisonment.