RERA is The Real Estate (Regulation and Development) Act 2016, whose sole purpose is to regulate the real estate industry in India, specifically the new construction. It requires real estate developers and brokers to be registered and all construction activity to be monitored quarterly so that property buyers are not cheated.
The Act aims to bring about transparency in the industry by making several details of the real estate project visible on a public forum, i.e. the state’s RERA website. People will be able to see details such as number of flats, carpet area statement, number of sold apartments, progress of construction, litigation history and all regulatory documents/plans as certified by the local municipal authority.
Each state has been conferred powers to formulate their own rules for the same based on the lines as suggested in the above Act. The Maharashtra RERA rules can be found here .
Registration of Projects under RERA
All commercial and residential real estate projects will have to register by submitting documents along with the prescribed fees except in projects where:
1. The promoter has received completion certificate of the project prior to commencement of Act
2. The area of land proposed to be developed does not exceed 500 sq. m
3. The number of apartments is not more than 8
4. Any repair or renovation of an existing building or structure that does not require marketing, advertising and selling of any apartment or plot
Documents required for registration under RERA
The following documents are required to be submitted in triplicate:
- PAN Card of the builder
- ITR of last 3 years and the balance sheet of the builder
- Builder must clarify about the apartment (carpet area, number of floors, parking space)
- Declaration by the builder of having legal title of the land with proof
- Details of the land (rights, title, mortgage)
- If the builder is not the owner of the land, the consent letter of the actual owner with documents will be required
- Details of the project (location, sanctioned plan, layout plan)
- Ownership documents (proforma of allotment letter, agreement of sale)
- Information of the persons involved (Architects, Engineers and others)
Registration Process for Real Estate Agents
1. File an application form along with fee and documents to get registered with RERA
2. You will receive a registration number from the regulator. This need to be mentioned in every property sale
3. On a quarterly basis, you are required to maintain the books of account, records and documents related to the transactions
4. Share all the information and documents about the project with the buyer
5. Agent may be suspended for the misrepresentation or fraud during the registration process.