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RERA Registration

RERA Registration

RERA is an act for coordination and progression of the real estate sector to secure the sale of residence, area or building efficiently and transparently. The Act aims to defend the profit of purchasers.
The implementation of RERA is assumed to bring relief to the homebuyers as contractors will be responsible for the timely performance of the schemes and to protect consumers from fraud sellers. The developers would also obtain from the improved resolution of the customers in a managed environment.
The developers must get all permissions from several government offices before launching a project and disclose all the information on the website that the particular state RERA regulatory authority will set up.

Real estate agencies will be provided a registration number by the regulator which they have to mention in every estate sale. This will help in reducing the chance of deceiving and cheating the purchaser. The authority has wide-ranging powers to impose fines and imprisonment of agents in case of violation of the law.



  • According to the new law, the developer can’t make any changes to the plan without the written consent of the buyer. This provision will not allow the developer to increase the cost of their projects.


  •  The law ensures that realty project is completed in time. If delayed, then the developer will have to pay interest on the amount paid by the buyer.


  •  Registration is mandatory for all commercial and residential real estate projects where the land is over 500 square meters or includes eight apartments & which are under-construction.


  •  As per the new act, every phase of apartment will be considered a standalone real estate project, and separate registration needs to be obtained for each project.
  • It is compulsory for a state to establish a State Real Estate Regulatory Authority as per the new act. Buyers could approach this body for redressal of their grievances.


  •  The property will have to be sold to buyers based on carpet area and not on super built-up area which will become illegal under the new law.


  •  Failing to register a property will attract a penalty up to 10% of the project cost and a repeated violation could send the developer in jail.


  •  As per the new law, the developer will have to place 70% of the money collected from a buyer in a separate escrow account to meet the construction cost of the project. This will keep a check on developers who divert the buyer's money to start a new project, instead of finishing the one for which money was collected & also ensure that the respective project is completed in time.


  •  If the buyer finds any shortcomings in the project then buyer can contact the developer in writing within one year of taking possession.


  •  The law has a provision of a maximum jail term of three years with or without a fine, for a developer who violates the order of the appellate tribunal of the RERA.

Benifits Of RERA

  • Transparency : This act has brought transparency among buyers and developers.


  •  Standardised Carpet Area : According to RERA, carpet area is defined as ‘the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment’ this brought more clarity to home buyers.


  •  Advance Payment : Now the builder cannot take more than 10% of cost of property from buyer before entering into sale agreement.


  •  Authority : Development of regulatory authority for any kind of redressal.


  •  Safety : Safety of money and transparency on utilization.

Documents required for registration under RERA

Following documents should be enclosed in hardcopy with the application:

  •  PAN Card of the builder
  •  ITR of last 3 years and the balance sheet of the builder
  •  Builder must clarify about the apartment (carpet area, number of floors, parking space)
  •  Declaration by the builder of having legal title of the land with proof
  •  Details of the land (rights, title, mortgage)
  •  If the builder is not the owner of the land, the consent letter of the actual owner with documents will be required
  •  Details of the project (location, sanctioned plan, layout plan)
  •  Ownership documents (proforma of allotment letter, agreement of sale)
  •  Information of the persons involved (Architects, Engineers and others)

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