Why is RERA Registration a Revolutionary Step
The
real estate sector was largely unregulated in India before the introduction of RERA.
With a view to organize, regulate and promote this sector Real Estate
Regulatory Authority (RERA) was established as per the Real Estate (Regulation
& Development) Act, 2016.
The
objectives for introduction of RERA are:
-
To organize the real estate sector
-
To boost investment in real estate sector by making it more
lucrative through proper regulations.
-
Protection of investors
-
Safeguarding the interests of buyers
Registration under RERA is mandatory for every party involved in
real estate sector. RERA registration involves:
·
Project
Registration
·
Agent
Registration
Main features of RERA:
1. The most
important feature is mandatory RERA registration
requirement for all the real estate sector players, including builders and agents.
2. Promote transparency to discourage frauds and
foul play. Transparency is ensured through:
· Full
disclosure mandate for promoters to the potential customers
· Regular
updates to the investors and buyers.
· Developers
are required to publish proper disclosures on their websites about all their
projects.
- Build investor confidence through ensuring good governance in the real estate sector
4. To establish
a fast-track dispute resolution
mechanism
5. Promote
Standardization of general practices
6. Ensuring accountability through:
· Several fine
and penalty provisions for non-compliance.
· Deposit of
70% of project cost in a separate bank account.
Who is Required to register Under RERA
-
RERA Registration is mandatory
for commercial as well as residential real estate projects
-
Any project where
·
the land is over 500 square
meters or
·
eight or more apartments plan is involved,
is required to be registered with the regulator.
-
If at the time of implementation
of the Act if there were any ongoing for which completion certificate have not
been issued, they are also required to registered with RERA.
When is RERA Registration required
Before initiating any work, it is mandatory to get the RERA Agent Registration.
For applying for RERA registration it is mandatory for the applicant that all
the necessary clearances are already taken for.
Before initiating any promotion or advertisement for any project,
RERA Registration is mandatory. This ensures that there is no delay at the
delivery time and allotment to the buyers.
Process
Once the application for registration is
submitted, it is to be processes within 30 days.
If the application is approved by the
authority, a Unique registration number is allotted to the applicant along with
the login credentials. The applicant is required to update all the details
relating to the organization and project on the portal.
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