The Real Estate Regulatory Authority (RERA) is a regulatory body established by the government to oversee and regulate the real estate sector in a specific region or country. RERA aims to promote transparency, accountability, and efficiency in the real estate industry, protecting the interests of both buyers and developers.
This page provides an overview of RERA, its objectives, functions, and the benefits it offers.
Objectives of RERA
The primary objectives of the Real Estate Regulatory Authority are as follows:
- Consumer Protection: RERA is focused on safeguarding the interests of homebuyers by ensuring fair practices, providing timely information, and resolving disputes between buyers and developers.
- Promote Transparency: It aims to bring transparency to the real estate sector by mandating developers to disclose project details, including project timelines, legal approvals, and financial information, enabling buyers to make informed decisions.
- Standardization and Accountability: RERA sets guidelines and regulations for real estate developers, ensuring adherence to quality standards, construction norms, and timely completion of projects. It holds developers accountable for any deviations from the agreed-upon terms and conditions.
- Establishment of Regulatory Authority: It establishes a dedicated regulatory authority that acts as an independent body to oversee the real estate market, enforce regulations, and resolve disputes effectively and efficiently.
Functions of RERA
The RERA Authority performs the following functions:
- Regulate & Register: This Authority has the jurisdiction to list and control real estate brokers as well as various real estate developments.
- Keeping and disseminating records: It must issue and keep project records available for public review.
- Disclosures and Advertisements: RERA regulates the advertisements and promotional materials used by developers and agents to ensure that they provide accurate and truthful information to buyers, preventing misleading claims.
- Consumer Grievance Redressal: RERA establishes a mechanism for addressing consumer complaints and disputes. It provides a platform for buyers to file complaints against developers, and RERA facilitates their resolution through mediation or adjudication.
- Store Promoters' Database: It must retain a database of all projects containing proof as well as images of the promoters or enterprises whose licenses were canceled.
- Obligation Compliance: It is responsible for ensuring that all requirements imposed on builders, property allottees, and estate agents are met.
- Order Compliance: It must ensure that all of its rules and regulations are followed.
- Keep Track of All Real Estate Agents: The RERA authority must keep track of all real estate agents. It also keep details and photos of agents whose licenses have been revoked or suspended.
How to Register Projects under RERA?
The registration process under RERA varies from state to state. Given below is a general overview of how to register a project under RERA:
- Step 1: Ensure that your project meets the eligibility criteria set by RERA, such as minimum land area, financial viability, and necessary approvals from local authorities.
- Step 2: Collect and prepare the required documents for registration. These may include project details, land documents, proof of ownership, building plan and financial details.
- Step 3: Visit the official website of the respective state's RERA authority and create an account if required. Fill in the application form with accurate information and attach the necessary documents.
- Step 4: Pay the registration fees. The fee structure may vary based on factors such as the size and type of the project.
- Step 5: Submit the application form and documents online. The RERA authority will review the application and may seek additional information or clarification if required. The verification process may involve a physical inspection of the project site.
- Step 6: Once the application is reviewed and approved, the RERA authority will issue a registration certificate with a unique registration number for your project. This certificate is mandatory for advertising, marketing, or selling units in the project.
Documents Required to Register Under RERA
Keep the following documents handy when registering a project under RERA:
- Project details: Information about the developer, project name, location, type of project (residential, commercial, etc.), and proposed timeline for completion.
- Land documents: Proof of ownership or permission to develop the land.
- Building plan: Detailed architectural and structural plans of the project.
- Approvals: Copies of approvals and clearances from relevant authorities, such as environmental clearance, fire safety clearance, and local municipal corporation.
- Financial details: Project cost estimates, funding arrangements, and escrow account details for maintaining project funds.
- Promoter details: Details of the developer/promoter, including their background, experience, and track record.
Benefits of Real Estate Regulatory Authority (RERA)
RERA offers several benefits to individuals involved in the real estate industry, including:
- Protection for Homebuyers: It safeguards the interests of homebuyers by providing them with transparent information, timely possession of properties, and a mechanism to address grievances.
- Improved Accountability: It holds developers and agents accountable for their actions, reducing fraudulent practices and ensuring compliance with regulations and quality standards.
- Improve Market Credibility: The presence of a regulatory authority like RERA improves the credibility of the real estate market, attracting more buyers and investors, and fostering growth in the sector.
- Dispute Resolution: It establishes an efficient dispute resolution mechanism, reducing litigation and providing timely resolutions for consumer complaints, benefiting both buyers and developers.
- Standardization and Quality Control: It sets guidelines and standards for construction, ensuring that developers adhere to quality norms and deliver projects as per the agreed-upon specifications.