The Real Estate (Regulation and Development) Act, 2016 is rules of the Parliament of India which follow to protect home-buyers as well as help advance investments in the real estate industry. The Act establishes Real Estate Regulatory Authority (RERA) in each state for rules of the Real Estate sector and also acts as formally judge body for quick argument redressal. The bill was run by the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016. The Act came into place on 1 May 2016 with 59 of 92 sections notified. Remaining acts came into force on 1 May 2017. The Central and state governments are liable to notify the Rules under the Act within a statutory period of 6 months.
For long, home buyers have concerned that real estate transactions were leaning and heavily in favour of the developers. RERA and the government’s model code, aim to create a more balanced and fair transaction between the seller and the buyer of properties, especially in the primary market.
Registration of projects under RERA
- Marketing and residential projects including plotted development.
- Projects measuring exceeds than 500 sq mts or 8 units.
- Projects without Completion Certificate, before initiation of the Act.
- The project is only for the purpose of repair which does not involve re-allotment and marketing, advertising, selling of any apartments, plot or building in the real estate project, will not come under RERA.
- Each phase is to be treated as a stand-alone real estate project requiring fresh registration.
Documents Required for Registration Under RERA
- PAN Card
- ITR of last 3 years and the balance sheet
- The builder must clear about the apartment (carpet area, number of floors, parking space)
- Agreement by the builder of having legal title of the land with proof
- Details of the land
- If the builder is not the owner of the land, the approval letter of the actual owner with documents will be required
- Details of the project
- Ownership documents
- Information of the persons involved (Architects, Engineers and others)
Registration Process for Real Estate Agents
- Project registration will be done
- An advertisement should be done
- Website updation / Disclosures should be given.
- Carpeted area.
- Alteration in a project approval of 2/3 allottee is the must
- Project accounts Audit must be completed
- 70% of the funds contributed from allottee needs to be located in the project account. Withdrawals to cover construction and land cost.
- Withdrawals to be in proportion to the % age completion method.
- Withdrawal to be approved by an engineer, architect, and CA.
- Provision for RERA to stop project bank accounts upon non-compliance.
The Real Estate (Regulation and Development) Act, 2016 (RERA) is a provision passed by the Indian Parliament. The RERA like to protect the interests of home buyers and also increase investments in the real estate sector.
Ongoing projects which have not got the occupancy certificate from local authorities will come under the provision of RERA. The real estate (regulation and development) Act, 2016 (RERA) is set to become in role across all the states from 1 May 2017.
RERA stands for Real Estate Regulatory Authority
yes, but excluding Jammu & Kashmir.