RERA aka Real Estate (Regulations and Development) Act finally came into full force on 1st May 2017. It is said to be a pro-buyer act that would protect the interest of all the homebuyers by penalizing all the unscrupulous developers. It would bring more transparency to the home buying and selling process, thus assigning more trust of the homebuyers on the real estate projects in India. The Act empowers the buyers by mandating all the developers to register all their upcoming and ongoing (but without completion certificate) projects with the Regulatory Authority of State or Union Territory. The RERA Committee made an announcement about the Act recently stating,
“Under Section 3 of the Act, the promoter shall not advertise, market, book, sell or offer for sale or invite persons to purchase in any manner any plot, apartment or building respect of such land parcel unless he registers such independent phase as a separate real estate project…."
After hearing this announcement, many questions have started hovering over the mind of the developer about the registration process, last date for registration, details required and whatnot. Read on to know more about the important things that every developer must know about the RERA registration.
- What Is The Last Date For Registration
Every developer would have to register with the State Real Estate Regulatory Authority on or before 31st July to stay authorized. Every project that the developer undertakes would have to be first registered with the Real Estate Regulator otherwise the project would stay unauthorized. Every detail about the developer as well as the upcoming or ongoing project should be uploaded on the web with registration for the buyer to check.
- What Happens If Someone Fails To Register By 31st July?
If any developer fails to register with the Real Estate (Regulations and Development) Authority by 31st July, all their ongoing and under-construction projects would be deemed as unauthorized construction. They would not have the right to promote or advertise their projects and will always be under the threat of demolition by the government.
- Who Needs To Register?
Every builder and developer who is undertaking a new residential project that is spread over an area of more than 500 square meters or has a minimum of 8 apartments under its construction purview. Every commercial project, including shops, offices or other building would also have to be registered under the Real Estate Regulatory Act. Even the under-construction projects would also have to register as per the rules set out by the respective State Real Estate Regulatory Authority. Not just them, the real estate agents would also have to fill in a one-time form for registration with the State or Union Territory Regulator.
- How To Register A Project?
The process of registration for a developer to authenticate all their under construction and upcoming projects is quite simple. The developer would have to fill an online form that is available at the official RERA website and submit it with all the necessary detail to get them registered. RERA would approve or reject the application for registration within 30 days of the submission of the form.
- What Happens After The Developer Has Registered?
Once the developer has successfully registered with RERA and the application is approved by the government, he/she would get a registration number, a login id and a password to handle their account. The applicant would then have to fill in all the necessary details about their under-construction as well as upcoming projects from time to time.
- What Details Are To Be Uploaded on The RERA Website?
From various personal details to the specific details about the ongoing and upcoming projects would have to be uploaded on the RERA website. The developer has to include various details a bout the project like date of project completion, site layout and project plan, facilities provided, development work, detailed breakdown of the project cost, land title status, payment schedules and all the government approvals. These details about the project need to be quarterly updated so that the buyer can know the real status of their project.
If a developer fails to comply with the rules set-up by the Real Estate Regulatory Act, he/she would be penalized as per the State Regulations. The punishment for non-compliance can include interest on delays, jail term, a 10% of project cost as fine and even cancellation of developer registration.