What is RERA Registration and why is it required?

Are you planning to buy a dream house or have already zeroed in the dream home of your choice? Have you paid partial amount in purchase of your dream house and still you are not aware when will you get the possession of your home? If these questions create goose bumps for you then you have accessed the right document as this document will provide you insights related to RERA Registration.

An overview of RERA Registration:

Before diving deep into insights of RERA Registration, it is inevitable to understand what RERA Registration is all about? Real Estate Regulations Act or more commonly known as RERA was incepted in 2016 to protect the interest of home buyers. Since the time RERA came into existence, it not only streamlined real estate operations but also enabled to boost the investment. RERA was formed to ensure transparency thereby making transaction between seller and buyer fair. It is particularly applicable for the primary market. To ensure speedy dispute resolution and increase accountability of the parties involved in Real Estate sector, there is a regulation in each state.

What all types of projects will be included in RERA?

Before proceeding further, it is important to understand what types of projects will be covered in the ambit of RERA. Have a look at the list given below which includes types of project as follows-

1. Commercial projects
2. Residential projects
3.  Plots
4. Apartments
5. Buildings

What impact does RERA have on the buyers?

RERA has provided breather to greater extent to the home buyers. The impact it made on the buyers is as follows-

1. If any minor addition/alteration is done then the allottees must be informed.
2. If addition/alteration is done, the approval of two third allottees is required.
3. Without RERA Registration, the possibility of an advertisement/launch is ruled out.
4. Third party can transfer only when there is an approval of two third allottees.
5. The information related to the land status, layout, sub contractors etc. must be shared.
6. Completion of the projects on timely basis with its delivery to the customers.
7. Defect liability clause which is applicable for 5 years ensure better construction quality.
8. Once major portion of the project is sold, RWA formation becomes important within a time limit of three months.

What are the documents required for RERA Registration to be submitted?

If a project needs RERA Registration then it becomes necessary to submit the documents mentioned below-

1. Builder’s PAN card
2. Builder’s Balance Sheet with last three years Income Tax Return
3. Architects and Engineers information
4. Detailed description of the project like Carpet Area, Parking space etc.
5. Proof of legal title by the builder
6. Description of land usage
7. Letter of Consent( if builder is different from an owner)
8. Project description regarding location, plan layout etc.
9. Documents of ownership

Why RERA is required?

The importance of RERA lies in the factors mentioned below. Have a look at why RERA is required-

1. It ensures standardization as well as professionalism in Real Estate sector.
2. The buyer as well as developers get equal amount of information.
3. The possibility of fraud is minimized.
4. It reduces chances of delay.
5. The transparency in real estate transactions is ensured.
6. Ensures confidence and trust among the investors.
7. It results in efficient transactions in a transparent manner.
8. It protects the interest of the buyer.

Process to obtain RERA Registration

• Board Meeting- A Board Meeting is required to be held which must include Board Resolution. Further, Board of Resolution must include filing RERA Registration Application followed by opening a bank account where construction cost is kept. Board Meeting must also include Sale Agreement’s approval followed by Letter of Allotment.
• Title Search Report- In this step, it is important to attain Title Search Report which is applicable for a proposed land.
• Attaining mandatory Licenses- Fire Department, National Highway Authority of India, National Authority Disaster Management Authority, Airport Authority of India, NOC etc. are the few mandatory Licenses required for the project to obtain RERA Registration. 
• Filing Application Form A and RERA Registration fee- Application Form A is an important step in attaining RERA Registration and RERA Registration fee is also required to be paid to the concerned authorities.

Conclusion

 In a nutshell, RERA not only streamlined real estate operations but also enabled to boost the investment. RERA was formed to ensure transparency thereby making transaction between seller and buyer fair. If you are too keen to get your project registered for RERA Registration or have any concern related to it, consult your trusted legal and financial consultant Swarit Advisors.