Legal Means VAKILKARO
Buying a home is still a dream for many. The real estate industry has been under a scanner for a long period of time due to fake promises made by the promoters and real estate agents about the completion and delivery of the real estate property.
Due to these issues in the real estate industry, the government has introduced the Real Estate (Regulation & Development) Act, 2016 to resolve the problems faced by the buyer of the property. Real Estate Regulatory Authority (RERA) has been established under this Act to register and approve projects which are related to commercial and residential property and regulate the sale and purchase of the property.
RERA Registration can be done for promoters and real estate agents. The RERA registration can be taken state-wise and such registration is applicable through that state. The documents are to be submitted online at the respective state’s website.
The time required for the submission of the documents is 30 days.
The RERA Registration is applicable in following cases:
• It applies to promoter and real estate agent.
• It applies to commercial, residential and plot developed for sale.
• It applies to projects having more than 8 apartments or area exceeding 500 sq. mt.
The promoter can advertise the project only after its registration under RERA is done and registration number is also required to be mentioned.
The Registration is valid for a period of 5 years from the date of registration.
Yes, the RERA Registration can be extended in the event of natural disaster or a war.
The real estate agent may end up in losing the registration and can attract a penalty of Rs. 10,000 per day that may go up to 5% of the sale value.
The maximum period of RERA Registration extension can be 1 year in the event of natural disaster or a war.
The promoter and real estate agent need to register in each and every state in which they operate in order to be compliant to the real estate law. This is due to the fact that the RERA law applies state wise.
The promoter needs to obtain necessary license and clearance from the government before he can sell even a single property.
The booking amount is 10%. It needs to be paid after the sale agreement is registered.
The following projects are not covered under RERA:
• Where the area covered under the project does not exceed 500 sq. mt.
• Number of apartments does not exceed 8.
• Renovation or redevelopment project which does not involve marketing, selling of new apartments.
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