The Real Estate (Regulation and Development) Act, 2016 was passed by the Indian parliament on 1 May 2016. The act replaces the erstwhile Real Estate Regulation Act, which has not been effective in addressing the concerns of buyers and investors in the real estate sector. It provides a new, comprehensive regulatory framework to address concerns of consumers, developers and regulators. A major highlight of the RERA is that it seeks to bring transparency in pricing and definition of project completion timelines.
Overview of RERA
Real Estate (Regulation and Development) Act, 2016 (RERA) is an Act of Parliament of India enacted by Narendra Modi government. The Real Estate (Regulation and Development) Bill, 2013 was introduced in Lok Sabha on 27th August 2013. It got passed in Rajya Sabha on 20th May 2014 and got assented by President Pranab Mukherjee on 1st May 2016. A total of 71 amendments were made in it during its passage from LS to RS for final enactment. The Real Estate Regulation & Development Act has been a long pending demand in real estate sector in India that will not only protect buyer interest but also bring in much needed transparency in sector that is known for delayed delivery & cost over runs.
Things To Know Before Registering Your Project Under RERA
With Real Estate Regulatory Authority of India (RERA) coming into force, there are certain things that you must know before registering your project. We tell you what are they. Accordingly Real Estate Developers are mandated to register their projects with Real Estate Regulatory Authority (RERA). This is a big positive for home buyers as till now home buyers had no recourse if developers don’t fulfill their commitments after selling flats/apartments etc. So let us discuss about these important things below
Important Documents Required for Registration
- For Individual: Photograph, PAN and Aadhaar of the applicant
- For Company: Company registration certificate, CIN, PAN TAN, brief detail of enterprise, Photograph and Photographs of all Partners and Directors.
- For Proprietorship Firm, Societies and Partnership Firm: Company Registration Certificate, PAN, CIN/TAN and Photographs of all Partners and Directors.
- For Competent Authority: PAN, CIN, TAN and Photographs of Housing Commissioner, CEO and VC.
- For Local Authority: PAN, TAN and Photograph of M.C./E.O
- Brief detail of the project
- Audited Balance Sheet
- ITR of the last three years.
- Registry document
- Sale Deed
- Lease Deed
- Extract of Khatauni
- Allotment Letter issued by Competent Authority
How To Register Online
Now that your project is registered with RERA, it’s time to formalize some important processes related to real estate. Before you do that, it’s worth pointing out that while registration brings a sense of order and structure into how you run your business, there will always be new situations that arise. When they do, it’s good for both your sanity and reputation if you have a plan in place for handling these situations quickly—preferably before they happen. You can formalize these plans with clear documentation outlining what happens in every scenario.
What Happens After Registration
Once you’ve registered with a state or district registrar, they’ll send you a certificate of registration. This is proof that you have registered and will help protect against disputes with buyers in court. But don’t start construction yet; after registering, it may take up to eight weeks for authorities to officially approve your building plans. You can use these weeks to make sure all construction material suppliers are compliant (for example, if they don’t provide fire safety equipment). Once you pass inspection, start building! Keep an eye on things—your team should keep track of all sub-contractors and coordinate deliveries at every stage of production.