RERA Registration

Who needs to Register?

In India, the Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to regulate the real estate sector and protect the interests of homebuyers. According to RERA, certain entities involved in the real estate sector are required to register with the regulatory authority established under the Act. Here are the entities that need to register under RERA:

1. Real Estate Developers/Builders/Promoters:

   • Any person or entity involved in the development of a real estate project exceeding a specified size (which may vary by state) is required to register with RERA before advertising or selling the project.

2. Real Estate Agents:

   • Individuals or entities acting as intermediaries between the buyers and developers for the sale of properties are required to register with RERA.

3. Real Estate Projects:

   • All residential and commercial real estate projects exceeding a certain size, as defined by the respective state RERA rules, need to be registered with the regulatory authority.

4. Commercial Real Estate Projects:

   • Commercial projects also fall under the purview of RERA, and developers undertaking such projects need to register them with the regulatory authority.

5. Ongoing Projects:

   • Ongoing projects that have not received a completion certificate before the commencement of RERA need to be registered within a specified timeframe from the date of implementation of RERA in the respective state.

It’s important to note that the rules and regulations under RERA may vary from state to state in India. Each state has its own Real Estate Regulatory Authority (RERA) responsible for implementing and enforcing the provisions of RERA within its jurisdiction. Developers and agents are required to comply with the specific rules laid down by the RERA authority in the state where the project is located

Exemption from Registration

• Land area and unit count: The most common exemption applies to projects where the land area proposed for development does not exceed 500 square meters or the number of units does not exceed eight, including all phases. This means small projects fall outside RERA’s purview.
• Interpretation variations: Some states interpret this clause disjunctively, meaning either condition alone qualifies for exemption. Others interpret it conjunctively, requiring both conditions to be met. It’s best to check with your state’s RERA authority for clarity.

Exemption based on Project Type:

• Renovation/Repair/Redevelopment: Projects focused solely on renovation, repair, or redevelopment without involving marketing, advertising, or sale of units are exempt.
• Government/PSU projects: Projects undertaking construction or development by government departments, public sector undertakings, or for their exclusive use are not required to register under RERA.
• Joint Development Agreements (JDAs): Projects developed under Joint Development Agreements (JDAs) with landowners might also qualify for exemption, depending on the specific agreement and state regulations.

Important notes:

• These exemptions are general and might differ slightly based on individual state RERA rules. Always confirm with your state’s RERA authority for specific details.
• Even for exempt projects, it’s advisable for developers to maintain transparency and fair practices while dealing with buyers to build trust and avoid potential legal troubles.
• Buyers should be cautious when investing in exempt projects and conduct thorough due diligence to understand the risks involved.

Documents Required

The specific documents required for RERA registration in India may vary by state, as each state has its own rules and regulations under the Real Estate (Regulation and Development) Act, 2016 (RERA). However, the following are commonly required documents for RERA registration:

1. Real Estate Developer/Builder/Promoter:

   • PAN card of the promoter
   • Address proof of the promoter
   • Certificate of incorporation and memorandum of association (MOA) or partnership deed, as applicable
   • Audited balance sheet of the promoter for the preceding financial year
   • Income tax returns of the promoter for the three preceding years
   • Details of ongoing projects and completed projects by the promoter
   • Project-wise details, such as land title, approvals, timeline, and other relevant information

2. Real Estate Agent:

   • PAN card of the real estate agent
   • Address proof of the real estate agent
   • Certificate of incorporation and memorandum of association (MOA) or partnership deed, as applicable
   • Audited balance sheet of the real estate agent for the preceding financial year
   • Income tax returns of the real estate agent for the three preceding years
   • Details of real estate projects for which the agent is acting on behalf of the developer

3. Real Estate Project:

   • Project details, including the layout plan, site plan, and floor plans
   • Details of the land title and ownership
   • Details of approvals and clearances obtained for the project
   • Proforma of the allotment letter, agreement for sale, and conveyance deed
   • Details of the carpet area, common area, and amenities
   • Estimated project cost and means of finance

It’s important to note that the above list is indicative, and the actual documents required may vary. Developers and agents are advised to refer to the specific rules and guidelines laid down by the RERA authority in the respective state where the project is located. Additionally, the RERA authority may update its requirements from time to time, so it’s essential to stay informed about any changes in the documentation process. Non-compliance with RERA registration requirements can result in penalties and legal consequences, so it’s crucial to ensure all necessary documents are submitted accurately and within the specified timeframe.

Validity of Registration under RERA

The validity of RERA registration in India depends on whether you’re referring to a promoter’s registration (developer) or a real estate agent/broker’s registration. I’ll explain both for clarity:

Promoter Registration (Developer):

• Initial validity: RERA registration for promoters typically lasts for five years from the date of issuance.
• Renewal: Registration can be renewed for further terms of five years each, upon application and fulfillment of specific requirements set by the state RERA authority.
• Conditions for renewal: Common requirements for renewal include submitting updated project information, financial statements, and compliance reports demonstrating adherence to RERA regulations.
• Renewal fees: States might charge renewal fees, determined by factors like project size and type.

Real Estate Agent/Broker Registration:

• Initial validity: Validity periods for agent/broker registrations vary across states. Some states grant three years, while others extend it to five years.
• Renewal: Similar to promoters, renewal options exist with specific state-defined timeframes and requirements.
• Renewal conditions: Renewal typically involves submitting proof of continued professional development through RERA-approved training programs.
• Renewal fees: States might charge renewal fees for agents/brokers as well.

Important Notes:

• These are general guidelines, and specific validity periods and renewal processes might differ slightly based on individual state RERA rules. Always check with your state’s RERA authority for the most accurate and up-to-date information.
• Remember, RERA registration doesn’t guarantee project success or quality. Buyers should still exercise due diligence before investing in any real estate project.

Cancellation of Registration

The cancellation of RERA registration in India refers to the removal of a developer or real estate agent/broker from the RERA database, essentially revoking their license to operate under the RERA Act. This can happen for various reasons, impacting both parties differently.

Reasons for Cancellation for Developers:

• Non-compliance with RERA rules: This includes failing to provide timely updates on project progress, misrepresenting project information, not depositing buyers’ funds in separate accounts, and violating construction guidelines.
• Financial malpractices: Failing to meet debt obligations, diverting funds meant for project development, and engaging in fraudulent activities can trigger cancellation.
• Failure to complete the project within a reasonable timeframe: Continuous delays exceeding permissible limits and inability to demonstrate progress despite warnings can lead to cancellation.
• Criminal convictions: If the developer is convicted of fraud, forgery, or other relevant offenses, RERA may revoke their registration.

Consequences of Cancellation for Developers:

• Inability to operate under RERA: The developer won’t be able to launch new projects under RERA rules and will lose access to associated benefits.
• Legal repercussions: Fines, penalties, and even potential lawsuits from buyers for non-fulfillment of obligations can arise.
• Damaged reputation: Loss of RERA registration negatively impacts public trust and can hinder future business prospects.

Reasons for Cancellation for Real Estate Agents/Brokers:

• Engaging in unfair trade practices: Misleading clients, withholding crucial information, and charging exorbitant fees can result in cancellation.
• Acting without a valid RERA registration: Operating without proper registration is a violation and grounds for immediate cancellation.
• Criminal convictions: Similar to developers, convictions for relevant offenses can lead to license revocation.
• Professional misconduct: Repeated complaints from clients about unethical behavior or negligence can trigger cancellation.

Consequences of Cancellation for Agents/Brokers:

• Inability to practice under RERA: They cannot legally act as real estate agents and lose access to registered projects.
• Potential legal action: Legal proceedings might follow depending on the severity of the offense and impact on clients.
• Loss of reputation: Cancellation casts a negative light on their professionalism and may hinder future career opportunities.

Process of Cancellation:

• RERA authorities initiate the process based on complaints, inspections, or evidence of non-compliance.
• The accused party receives a notice and opportunity to defend themselves.
• After due investigation and hearings, RERA issues a final order for cancellation, which can be appealed in higher courts.

Important Notes:

• Specific grounds for cancellation and processes might vary slightly depending on the state’s RERA rules.
• Both developers and agents/brokers should actively stay compliant with RERA regulations to avoid cancellation.
• Buyers can check the RERA website to verify a developer’s or agent’s registration status before entering into any agreements.

Penalties for Non-Registration

Penalties for non-registration under RERA in India can be quite significant, acting as a strong deterrent against developers and agents bypassing the regulations. These penalties differ between promoters (developers) and real estate agents/brokers:

For Promoters:

• Fine up to 10% of the estimated project cost: This is the most significant penalty, imposed for failing to register a project with RERA.
• Imprisonment up to 3 years or a fine up to another 10% of the project cost, or both: This additional penalty applies in case of persistent violation or willful non-compliance with RERA orders.
• Financial penalties for specific offenses: RERA can also impose additional fines for offenses like providing false information, diverting project funds, or failing to deposit buyers’ funds in separate accounts. These penalties can range from 5% to 10% of the project cost.

For Real Estate Agents/Brokers:

• Fine of Rs. 10,000 per day for each day of default: This penalty accumulates for every day the agent operates without RERA registration.
• Cancellation of registration number: Repeated violations or serious offenses can lead to the permanent cancellation of the agent’s RERA registration, effectively disbarring them from practicing in the state.
• Additional penalties: Some states might also impose additional fines for specific offenses committed by agents, such as misrepresenting information or engaging in unfair trade practices.

Important Notes:

• These are general guidelines, and specific penalty amounts and processes might differ slightly based on the individual state’s RERA rules. Always check with your state’s RERA authority for the most accurate and up-to-date information.
• Non-registration is not only subject to penalties but also leaves buyers vulnerable to potential fraud and misrepresentation. Buyers should always ensure the developer and agent involved in a project are RERA-registered for their own protection.
• If you suspect any non-compliance or violation of RERA regulations, you can file a complaint with the relevant state RERA authority.

As a distinguished real estate developer in Odisha , your commitment to delivering high-quality projects is commendable. At www.onlyproperty.in  we understand the importance of regulatory compliance and the significant role it plays in the success of real estate ventures.

As a specialized RERA registration agent in Odisha, www.onlyproperty.in is dedicated to facilitating seamless compliance processes, ensuring that your projects meet all regulatory requirements at ORERA .

Why Partner with ?

1. Expertise:

1. • Our team comprises seasoned professionals with in-depth knowledge of RERA Odisha regulations. We stay abreast of updates to ensure your projects adhere to the latest compliance standards.

1. Customized Solutions:

1. • We understand that each project is unique. Our services are tailored to meet the specific needs of your developments, guaranteeing a personalized and effective approach to RERA registration in Odisha.

1. Timely Execution:

1. • Time is of the essence in the real estate industry. With www.onlyproperty.in , you can trust that the registration process will be conducted efficiently, allowing you to focus on other crucial aspects of project management.

1. Legal Expertise:

1. • Our legal experts specialize in navigating the intricacies of ORERA compliance. We provide comprehensive support, ensuring that your projects are legally sound and protected.

Our Services Include:

1. Preparing and submitting all required documents for ORERA registration.
2. Liaising with regulatory authorities on your behalf.
3. Ensuring compliance with RERA regulations throughout the project lifecycle.
4. Keeping you informed about any changes in RERA requirements.

Next Steps:

We would welcome the opportunity to discuss your specific requirements and demonstrate how can add value to your projects. A personalized consultation will allow us to understand your needs better and tailor our services accordingly.