What Is Real Estate Regulatory Authority (RERA): Meaning, Registration Process, Documents & Penalties

It is enacted to promote the real estate sector and regulate the transactions to ensure that they are held in a transparent manner. The Act has been passed by the Parliament in the year 2016 and it came into force in the year 2017. The Act contains 92 sections. The regulation is applicable to commercial as well as residential properties.

1. To enact standard norms and regulate the real estate projects in the interest of buyers
2. To ensure transparency in the sector
3. To hold the sellers and agents accountable for the transactions
4. To ensure that the real estate projects are not unnecessarily delayed  
5. To ensure that the Consumers are not misled by the agents with regard to the genuinity of projects.

List of Documents required for the Registration

• Builder’s PAN Card
• Balance Sheet and Income Tax returns filed by the builder for the preceding three years
• All the details of the project, like the location, floors of the building, parking area, etc.
• Declaration has to be made by the builder that he has a legal right or ownership over the land and the details, along with the proof of ownership.
• Details of all the persons involved in this project

List Of Documents Required For The Registration Of Agent

ID proof and address proof of the applicant
Agent company details like the name and address of the company, etc.

What is the procedure for registration?

The procedure for registration under the Act varies from state to state.

• File an online application with all the above specified documents on the official RERA website of the respective state.
• Pay the fees prescribed on the website
• On verification a certificate would be issued, this has to be mentioned during the sale of the property.
• The certificate has to be issued by the authorities within 30 days 
• In case of any disparity, the authority reserves the right to reject the application. The act also provides that, before any application is rejected, the applicant will be given an opportunity to provide justification.

• File an online application with all the above-specified documents on the official RERA website of the respective state.
• Pay the fees prescribed on the website
• On verification a registration number would be issued, this has to be mentioned during the sale of the property.

• Any person aggrieved by an offense under RERA may file a complaint.
• The complaint can be filed by filing an application online
• All the complaints filed under the Act are required to be resolved within 120 days of filing.
• In case the complainant is not satisfied with the decision of the RERA and its presiding, they may file an appeal before the RERA appellate tribunal within 60 days from the date of the decision.

Under following conditions, it is not necessary for a builder to register under RERA:

• Where the area of land is 500 square meters or less
• When the work involved is renovation, redevelopment or repairs to the existing building
• Where the project began before the enactment of the RERA Act.

The Act prescribes the following punishments for offenses:

• 10% of the costs that are estimated on the Project in case of non-registration of a project under RERA.
• In case any builder or agent violates any provisions under the Act then he would be liable for 3 years of imprisonment and/or payment of costs up to 10% of the estimated Project cost.
• 5% of the Project costs in case the builder or agent provides mendacious information.

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