In order to bring about transparency in the construction process RERA Act made it mandatory for all the commercial and residential Real estate projects where the land is over 500 square metres, or eight apartments or less to register under RERA. RERA protects the customers or the purchasers through the construction process. RERA Act specifies certain norms and regulations for the development and building of the Real Estate to be followed by the builders. Every new construction or development is required to be registered and approved by RERA. Regulatory Authorities are set up at State level to govern and regulate Real estate. All the promoters, builders, and real estate agents desirous of selling, marketing, promoting, advertising, purchasing, or booking of real estate projects need to obtain registration under RERA. Such kind of registrations is known as RERA Registration.
Applicability of RERA registration?
- The projects which have been completed before the implementation of RERA Act but do not possess completion certificate are considered as a part of RERA.
- It is applicable to the promoters, real estate agents.
- The Real estate agents are required to get certificate under RERA registration who are engaged in selling and purchasing of the properties.
- Earlier, the projects exceeding area of 500 Square meters or having more than 8 apartments were covered under RERA but now lessor area projects are also included in RERA registration.
- It is applicable to all the commercial, residential and plotted development
Why RERA have been brought up?
- To reduce the fraudulent acts in the Real Estate Sector
- To bring about Uniformity in the Real Estate Sector.
- To bring Transparency in the Real Estate Sector.
- To update the purchasers about the real estate work of construction, to be provided with keys of the purchased construction on time bringing about Accountability of the developer or builder.
- To protect the buyers from the Unfair Trade practices of the buyers.
- In order to solve the grievances, Dispute resolution mechanism have been set up.
Benefits of RERA registration
- Timely execution :- The projects are required to be completed on time and date provided to the regulatory authorities resulting in no false promises or delay in the process of construction to the buyers . Also heavy penalty is imposed if delay is caused.
- Full details of project :- At the time of registration under RERA, the promoter is required to give full details from start of construction stage to the amenities to be provided.
- Clearance through necessity authority :- Once a project is registered under RERA, previous government approval is obtained by the promoter so the buyers unaware of the development are now protected under the contract. Government clearance is a must during project registration under RERA.
- Structural Defects :- If after purchase, any buyer finds any defects, the developer is responsible to repair it.
- Restricted advertisement :- Only if you get registered under RERA, the project can be advertised. The advertisement made shall contain the registration no.
- Booking amount :- Only after the sale agreement is prepared and registered, the buyer has to pay 10% of the cost of project as the booking amount.