Is RERA Registration Mandatory? What Buyers And Builders Should Know?

Introduction

Are you confused whether RERA Registration is necessary or not? Or are you dealing with issue in registration process? Many buyers and builders struggles, problem while filing online or insufficient counseling, which may lead to delays and legal consequences down the line.

RERA registration under the Real Estate (Regulation and Development) Act, 2016 aims to bring more transparency and accountability. It can be used to shield buyers from fraud and require builders to adhere to clear timelines and disclosures. Knowing the registration requirement helps keep you out of trouble and avoids being penalized or getting involved in disputes.

Is RERA Registration Mandatory?

RERA registration is compulsory and important for most real estate projects under the Real Estate (Regulation and Development) Act, 2016.

Any real estate project where the area of land surpasses 500 square meters or the project includes more than 8 apartments, that must be registered with the respective State RERA Authority as per Section 3 of the RERA Act, 2016, before doing advertisement, marketing, or selling units.

Why RERA registration is mandatory

• It protects the homebuyers from fraud and fake promises

• Helps in ensuring transparency in approvals of project, layout, and timelines

• It held builders accountable and liable for delaying and project defaults

• Provide the buyers with a legal remedy by RERA Authorities

Who can register under RERA

• Builders, developers, and promoters planning to establish real estate projects

• Landowners expanding or developing property through collaboration or joint ventures

• Authorized promoters responsible for selling or marketing the project

• RERA registration creates a transparent and legally secure real estate environment for all stakeholders.

What risks do buyers face if a project is not RERA registered?

If buyer, purchases the project which is non-RERA registered, then the buyer has to face several consequences because such projects have no verified approvals, fake promises and uncertain timeframe. And if by chance fraud or delay occurs, the buyer may lose all remedies granted by the RERA Act, 2016.

Can buyers file a complaint if the project is not registered?

The buyer ca file compliant under the State RERA Authority against promoter for non-registration and doing fake advertisement as it violates the law. The RERA can impose penalties and may also direct the builder or promoter to fulfil the legal requirement. All the complaints filed under the Act are required to be resolved within 120 days of filing.

How can I check whether a project is RERA registered?

You can verify it by visiting the official website of State RERA. You can search it by using the name of project and promoter or RERA registration number. The portal will show you the approved plans, completion timelines, and promoter details, helping buyers make informed and safe property decisions.

How can you register your real estate project under RERA?

1. Create Promoter Login: The first and foremost step is to create a promoter account by registering on the official website of State RERA.

2. Fill the Online Application: Then you have to the application form by filling details of project likewise location, land area, number of units, approvals, and timeline of completion as required under Section 4, RERA Act, 2016.

3. Upload Mandatory Documents: After filling the form you have to upload all the mandatory documents as mentioned.

4. Pay Registration Fees: Pay the registration fee online prescribed as per State rules.

5. Submit and Verification: The Authority will verify all your documents and information provided.

6. Grant of Registration: After verification, you will get approval within 30 to 60 days from the date of submission if all documents are complete and accurate. Once it is approved, the RERA will issue a Registration Number, which must be mentioned in all advertisements.

What documents are required for RERA registration?

• Builder’s PAN Card

• Balance Sheet and Income Tax returns filed by the builder for the preceding three years

• All the details of the project, like the location, floors of the building, parking area, etc.

• Declaration has to be made by the builder that he has a legal right or ownership over the land and the details, along with the proof of ownership.

• Details of all the persons involved in this project

Why Do RERA Applications Get Rejected?

• Applications can be rejected due to:

• If there are incomplete or inaccurate details of the project

• Several documents are missing or invalid

• There are discrepancies in ownership of land or approvals

• Builders must correct errors and resubmit for approval.

In which state RERA registration is done? The registration can be done through State RERA Authority in a state where the projects land is located.

Can RERA impose heavy penalties on builders for non-registration?

The RERA is authorized to impose heavy penalties on builders for non-registration under Section 59 of the Real Estate (Regulation and Development) Act, 2016.

1. Monetary Fines: The first-time violations include for up to 10% of the project estimated cost.

2. Imprisonment: If there is repeated violations despite fines then builders may face imprisonment of three years and additional fine for up to 10 – 20% of project estimated cost.

3. The Authority can also forbid to do advertisement, sell, or book units in unregistered projects.

How Lead India can help you?

• We provide complete end to end support in disputes resolution of RERA registration, for both buyers and builders.

• We help you with RERA registration and documentation

• We represent on your behalf in RERA disputes or hearings

• We make sure the ongoing compliance to avoid penalties

• We make your real estate transactions safe, transparent, and hassle-free.