RERA was established by the introduction of the Real Estate (Regulation & Development) Act 2016 to regulate and govern the real estate at the state level. Regulatory authorities are established at state levels that are governing body responsible for
Registration related approvals to register commercial as well as residential projects;
Regulating the sale and purchase contracts of the plot, apartments, buildings, etc. in the real estate sector.
In this blog, we will discuss RERA registration for Agents.
What is RERA Registration for Agents?
RERA ensures greater transparency & accountability by reducing the chances of frauds and delays that occur in these real estate contracts. RERA benefits the interest of both promoter & purchaser by the following benefits:
Transparent information sharing between the buyers and the sellers;
Contracts are formed to guarantee higher transparency between the buyers and the sellers;
Standards of accountability are set and are required to be followed;
A dispute settlement mechanism is established for quick disposal of grievances.
What are the impacts of RERA Registration for Agents?
RERA has various key-impacts on Real Estate sector-
The project cost has been increased;
The cost of capital is improved;
Liquidity remains in the hands of the promoters.
Introduction of Real estate regulatory authority with Real Estate Appellate Tribunal for fast disposal of case related to the purchase of property, has influenced the real estate sectors. Such tribunal shall be the authority to entertain claims, and no any other civil court or consumer forum will have any jurisdiction. RERA has set standards and ground for fast disposal of grievances.
What are the objectives of RERA Registration for Agents?
The main objectives of enforcement of RERA registration for agents are as follows-
Better transparency and accountability towards consumers;
Dispute settlement mechanism to solve grievances;
Reduction in frauds by increasing compliances and ensures fair-play by a decrease in delays;
Professionalism for the smooth operation of the real estate sector;
With responsibilities on promoter as well as buyer, RERA often leads to quiet & ease in businesses;
It creates awareness by promoting good governance.
What are the advantages of RERA Registration for Agents?
The merits of getting the project registered under RERA are as follows:
Execution of the contract on time
Before coming of RERA, constructors used to fake promises to deliver the project to the buyer on a specific date. During the project registration, the estimated time of completion of the project is required to be entered on which plan has to be completed and delivered to customers failing to do, and promoters can be heavily penalized.
While details of the project
At the time of applying for RERA registration for agents, the agent has to give accurate information of the project right from starting, the construction stage to specific features or amenities provided in the projects.
Clearance through the necessary authority
Before RERA, buyers were falsely attracted to promoters several schemes, and the buyers do not know or least bothered about such approval. Purchases the property from such developer who later delays the execution of contract due to delays in getting government clearances. During project registration under RERA, approval is compulsory before selling a single flat or house.
Structural defects
The responsibility to repair defects or deficiency is with the developer, in case the buyer finds that after the purchase of property, any structure has an error in project development.
Restricted Advertisement
Promoters are not allowed to advertise the projects without getting their project registered under RERA and should display the Registration Number in each advertisement.
Booking Amount
10% of the cost of the project has to be paid by the buyer as the booking amount after this, and the sale agreement is prepared and registered.
Where is RERA registration for Agents is applicable?
The applicability of RERA registration for agents are as follows:
It applies to the promoter, projects, and real estate agents.
RERA registration applies to commercial, residential and plotted development.
Real estate agents engaged in sale and purchase of the properties shall take the RERA registration certificate that will remain valid through the state.
After successful registration under RERA, a Unique Identification Number (UIN), user ID and password are generated. The promoter can use this user ID and password to log in to the project for updating the details.
What are Documents are required for RERA Registration?
RERA registration is an entirely online process which can be done through the official website of RERA, which differs from State to State.
Documents required for RERA registration in any state are as follows:
For Promoters registered as a Company
Certificate of registration
Name of the directors
Address of the directors
Date of incorporation
Photograph
Address
PAN
Email ID
CIN or TAN
Copy of CIN or TAN
Details of project experience
The audited balance sheet
Website of promoter
Income tax return of 3 years
Previous project experience and features for last 5years –
Name of Project
Status of the Project
Pending Cases details, if any
For Promoter/Builder as an Individual
Name
Father’s name
Occupation
Photograph
Address
Adhar card
The audited Balance sheet of the former year
Website of the promoter
Income tax return of proceeding three years
PAN
Email ID
Details of project experience
Documents required for RERA Registration for Agents
Name of the applicant
Father’s name
State
District
Tehsil
Permanent address
Photograph
Pan number
Pan copy
Email id
Registration fee(INR)
Payment date
PNB collection date
Bank Details:
Account Number
Account Name
Bank Name
IFSC Code
Branch Name
Branch Address
How can one register your projects under RERA?
If you want to register a project under RERA Arunachal Pradesh, RERA Sikkim, RERA Haryana, RERA Kerala or any other state follow these steps-
Open a bank account as specified under Section 4 (2) (I) (D) of the RERA Act and then gather all the necessary documents.
Submit Form A specified for RERA registration. Additionally, being a promoter or agent, you will need to file Form B, declaring your role within the real estate sector.
You have to submit other forms as per Real Estate Regulatory Authority guidelines to clarify your project’s purposes further.
You need to pay the registration fees to complete the registration procedure. The amount differs from state to the state of India.
Once registered, you can use the RERA registration number allotted, for acquiring the project and for all future communications.
Conclusion
Before the establishment of the RERA, there was no such authority that was responsible for regulating or providing guidelines related to the real estate sector. On the other hand, with the origination of the Real Estate (Regulation and Development) Act, 2016, new rules were set up. RERA Registration is appropriate for promoters, builders or anyone involved in the purchasing or selling off residential properties.