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RERA Projects are covered under The Real Estate (Regulation & Development) Act, 2016 which aims to establish the Real Estate Regulatory Authority that would regulate and promote this sector. The main aim of the Act is to protect the interest or buyers and promote timely delivery of properties or projects.
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Benefits of RERA Project Registration
- Improved Credibility -
Systematic and timely completion
- Optimum fund utilization -
Transparency in operations
- Fixed Accountability -
Reduced Litigation
Prerequisites of RERA Project Registration
It is mandatory for every project to get registered if it intends to advertise, market, sell, book, offer for sale or invite persons to purchase in any manner any plot, apartment or building AND is satisfying any of the following criteria :
Area under development is 500 square meter or above
Units to be developed are eight or more
Renovation or repairs or re-development involving marketing, advertising, selling or new allotment
(Projects not having completion or occupancy certificate should also get itself registered)
Documents required for RERA Project Registration
* Details required for Registration *
Promoter Details (Name, PAN, E-mail, Mobile Number, Address)
Project Details (Project Name, Project Description, Project Type, Start & End Date, Area of Land, Development plan, Estimated cost, cost incurred, etc.)
Development & Agent details
Bank details
* Documents for Registration *
Land Purchase deed/ Development agreement
NA Order & NOC from Competent Authority
Layout & Building Map
Architect, Engineer & CA Certificate
Legal title report & Draft Agreement to sale
Detail of cost incurred till date
Declaration by Promoters in Form-B
FAQ for RERA Project Registration
Q. Real estate project has land area less than 500 sq.mts but more than 8 apartments. Is registration mandatory ?
YES
Every real estate project having land area more than 500 sq.mts or having more than 8 apartments needs to be registered
Q. Does ‘allottee’ include secondary sales ?
As per section 2(d) an allottee includes a person acquiring ‘apartment or plot’ by way of transfer/ sale, except a person to whom it is given on rent.
Q. What is the penalty for non-registration of a project ?
If any promoter fails to register, penalty may extend up to ten per cent of the estimated cost of the real estate project.
In case of continued violation,
Imprisonment up to three years or
Fine up to a further ten per cent of the estimated cost project or
Both
Q. Is insurance of the project compulsory ? What are the provisions regarding Insurance ?
Promoter has to obtain all such insurance as notified by the State Government. So insurance will be compulsory only after the Notification is issued by the State Government. The Act says that the State Government can prescribe various types of insurance including but not limited to
a) Title of the land and building as a part of the real estate project; and
b) Construction of the real estate project.
The promoter is liable to pay the insurance premium before transferring the same to the allottee / association of allottees. The documents related to insurance will have to be handed over to the association of allottees when the same is formed.
Q. Whether money collected from allottees towards stamp duty, registration, share money for society, deposits for maintenance, corpus funds, infrastructure charges, parking charges etc., are required to be deposited in the designated bank account (70 %)?
Yes, since these are part of the project cost
Q. When does the promoter need to form society, association etc.?
The Promoter has to ensure that an association of allottees is formed within three months of 51% of allottees have booked their apartment in the project.
Q. Buyer is ready and gives undertaking that he is ready to give money beyond 10% however does not want to register. Should it be allowed?
No. Section 13(1) of the Act prohibits the promoter from taking more than 10% of the cost of apartment without entering into a written agreement for sale, duly registered.
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