APPLICABILITY OF RERA ACT
RERA stands for Real Estate Regulatory Authority (“RERA”) which is established under the Real Estate (Regulation & Development) Act (“Act”). This Act was introduced in the year 2016 to regularise the problems existing in the real estate sector. The Act will be implemented at the State level, and the governing authorities are responsible for the following:
- Registration and other related approvals for the registration under RERA of commercial properties and residential flats.
- Regulating the sale and purchase transactions of real estate properties.
RERA registration brings about transparency in these contracts and benefits all the parties to the transaction. It also brings about accountability by reducing the chances of delay in real estate contracts. The main aim of the registration is to protect buyers of real estate and simultaneously uplift the investment in the real estate sector.
The Real Estate (Regulation and Development) Act, 2016 was brought into power on May 2016, it was an act to establish the Real Estate Regulatory Authority whose purpose is the regulation and promotion of real estate sector and to ensure sale of plot, apartment or building or sale of real estate project in an efficient and transparent manner and to protect the interest of consumers in the real estate sector and establish an appellate tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority and the adjudicating officer and for matters connected therewith and incidental thereto. The act includes 92 sections and was enforced in 14 states, including Karnataka.
Objectives Of RERA Registration
- More transparency and accountability towards consumers in order to protect their interests.
- To resolve grievances by establishing the dispute resolution mechanism.
- To reduce frauds by increased compliances.
- To reduce delays through fair play.
- To ensure smooth operations by bringing professionalism and standards in place.
- To create awareness by promoting good governance practices.
- To bring ease in transactions due to imposed responsibilities on the promoter as well as the buyer.
- To set up the Appellate Tribunal to listen to appeals arising from the orders, decisions or directions of RERA.
Applicability of RERA Registration
- Parties to the transaction – It applies to promoters and real estate agents which includes builder, developer, contractor, development body or any other public body who/which constructs/develops land/building/apartment for the purpose of sale.
- Type of properties – It applies to commercial buildings, residential apartments, and plot developed for sale.
- Area – The registration applies for real estate projects exceeding 500 sq. meters or having more than eight apartments.
Process of RERA Registration and Documentation:
RERA registration is a state-wise registration process and hence varies from state to state. The process is online and can be applied from the official website of the state in which the registration is applied for. The promoters and the real estate agents have to submit the relevant documents along with the application for registration to the Regulating Authority of their respective states.
There are some documents that are common to the registration process across all states. They are as follows:
Documents required for Promoter Registration:
- PAN card of the promoter.
- Parking slots available in the real estate project.
- Legal title deeds reflecting the title of the promoter of the land on which project is proposed.
- Encumbrance Certificate relating to the land of the project.
- Commencement Certificate of the project
- The Sanction Plan, Layout Plan, location details of the project.
- The plan of development works to be executed in the project.
- Details of previous project experience of the promoter, if any.
The following documents related to the previous project experience, if any of the promoter/promoter enterprise is to be submitted along with the registration:
- Previous project experience – if yes, details of the projects launched by him in the last 5 years.
- Name of project.
- Status of project
- Any delay in its completion.
- Pending case – if yes, – case name and number.