Project Registration under RERA

PROJECT REGISTRATION UNDER REAL ESTATE REGULATORY AUTHORITY (RERA)

Why to register project under RERA?

It was established by the Parliament in May 2016 and the Act has come into force with all its 92 sections from 1st May 2017 across India. The Act aims to ensure the enthusiasm of consumers.

The implementation of RERA is expected to bring relief to the homebuyers as builders will be responsible for the timely delivery of the project and to protect consumers from fraud sellers. The developers would likewise gain from increased confidence of the buyers in a regulated environment.

The builders/developers won’t have the option to sell any new project without first registering their project under RERA. The Act provides that no engineer or manufacturer will promote, advertise, book, sell or offer available to be purchased, or welcome people to buy any plot, apartment or building, in any real estate project or part of it, in any planning area, without registering their project with the Real Estate Regulatory Authority (RERA)

Benefits of RERA REGISTRATION

Following are the advantages and perks of RERA registration:-

  • As earlier there was no standard formula for calculating the carpet area and the builders and developers uses their own method to calculate the carpet area but now the formula for calculating the carpet area have been clearly defined under the RERA act and now the developers and builders would not be able to manipulate the calculation of carpet area in order to increase their prices.
  • RERA Act have clearly specified the interest rate that would be charged in case of delayed payment or default as earlier there was no transparency in the interest rate.
  • It reduces the risk of Builders Insolvency or bankruptcy as the funds now cannot be diverted to other projects by the builder and 70% of the deposit should be kept in the separate bank account;
  • This provides right to the buyer to withdraw from the project in case of mismatch made in the commitment by the builder, and the buyer is entitled to receive the refund of the full advance amount paid for the project along with interest and can claim compensation
  • There is bar against the advance payment that is required to be paid by the buyer i.e the builder cannot take more than 10% of the cost of the apartment as a advance;
  • There are certain rights specified of the buyer if the builder fails to complete the project on due date;

Registration Requirement for RERA Registration

Following are the said requirement of RERA registration

  • Applicant has to file an application for registration with RERA in prescribed form along with prescribed fees and document;
  • Application for registration must be either approved or rejected within a period of 30 days from the date of application by the RERA;
  • On successful registration, the promoter of the project will be provided with a registration number, a login id and password for the applicant

Procedure to obtain RERA registration

 Following are the steps for the obtaining the RERA registration:-

  • Firstly, a checklist is prepared and the required documents are collected;
  • Then a bank account number that is opened with the scheduled bank for compliance of Sec. 4 (2) (l) (D) of RERA Act is obtained;
  • Then in Form-A Application for registration of project is prepared;
  • In Form-B:affidavit cum declaration by the promoter for declaration of estimated completion date of a project is given
  • In Form-G:Draft agreement to sale and allotment letter is prepared
  • An affidavit certifying that Form-G is not inconsistent or contrary to the provisions of RERA Act, 2016 is submitted;
  • An another affidavit certifying that no booking amount is being taken from the prospective customers is submitted
  • Payment of applicable fees (attach the duly signed Physical copy of online submitted project summary and web-based project profile along with the payment challan);
  • Dispatching the physical copy of all above documents to RERA authority office;
  • Then in Form-C registration certificate of project granted by to RERA authority office is obtained

Documents Required to obtain RERA Registration

  • PAN Card
  • Copy of legal title report
  • Details of Projects
  • Copy of Layout Approval (in case of layout) and Building Plan Approval (IOD)
  • Signed preforma of allotment letter and agreement for sale
  • Declaration in Form B (Declaration supported by an affidavit, which shall be signed by the promoter or any person authorized by the promoter)
  • Certificates of Architect (Form 1) (Mandatory for ongoing project)
  • Certificates of Architect (Form 4)
  • Certificates of CA (Form 3)
  • Certificates of CA (Form 5)
  • Certificate of Engineer (Form 2) (Mandatory for ongoing project)
  • Commencement Certificate

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