Introduction

RERA (Real Estate Regulatory Authority) was introduced in 2016 under the Real Estate (Regulation & Development) Act. Its primary objective is to deal with the long-standing problems in the Indian real estate market such as malpractices and a significant gap between promise and delivery from the builders. It makes sure that developers and builders comply with legal regulations to ensure transparency and protect the interests of homebuyers.

This article will cover the details of RERA registration in India, including its importance, the entities that need to be registered under RERA, and the RERA registration process.

Table of Contents

• What is RERA registration?
• Who needs to register under RERA?
• Documents required for RERA registration
• Step-by-step guide to apply for RERA registration
• Tips for successful RERA registration
• Importance of RERA registration
• Applicability of RERA registration
• Role of RERA registration in home loan approval
• Impact of RERA registration on home loan interest rates
• Conclusion
• FAQs

What is RERA registration?

RERA registration is a process under which developers and builders are required to register their projects with the respective state's RERA. This is mandatory for all commercial and residential real estate projects with a land area of over 500 square meters or more than 8 apartments. This must be done before engaging in activities such as advertising, marketing, selling, or offering any plot or structure for investment.

One of the key aspects of RERA registration is the transparency it brings to the real estate sector. By mandating developers to provide accurate project details, timelines, and financial information, RERA helps in creating a more trustworthy environment for both buyers and investors.

Who needs to register under RERA?

Any promoter or developer who develops a real estate project with the intention of selling or marketing it to potential buyers must obtain RERA registration. This includes both new and ongoing projects. RERA applies to both commercial and residential projects that meet the predefined criteria regarding project size and number of units.

Documents required for RERA registration

The documents for RERA registration vary depending on whether it's for a promoter or promoter enterprise. Here's a general overview:

For promoter registration:

• ID and address proof Aadhaar card, passport, or driver's licence.
• Recent passport-sized photographs of the promoter.
• PAN Number issued by the Income Tax Department.
• Email address of the promoter.
• Commencement certificate along with the sanction plan indicating approval for the project's commencement and its plan.
• Detailed layout plan of the project.
• Location details of the project.
• Detailed plan outlining the execution timeline of the project.
• Legal title deeds to the land on which the project is proposed.
• Particulars of previous projects undertaken by the promoter.

Additional documents for promoter as a company:

• Certificate of Organisation
• CIN / TAN number: Corporate Identification Number or Tax Deduction and Collection Account Number.
• Legal documents outlining the company's objectives and internal regulations.
• Financial statements of the company for the past 3 years, audited by a chartered accountant.
• Details of directors/chairperson or any other authorised person.

It's important to note that the specific document requirements may vary slightly depending on the state's RERA regulations.

Step-by-step guide to apply for RERA registration

The specific RERA registration process can vary from state to state. Here is an overview of the general steps you need to follow:

• Visit the official RERA website and fill out the application form specific to your state.
• Attach the required documents along with the application form.
• Pay the necessary fees for the registration.
• Your application will be reviewed within 30 days and will be either accepted or rejected. If there is no response after this period, you can consider the application to be accepted.
• Upon due verification, you will get the RERA registration number, along with the certificate.

Tips for successful RERA registration

While applying for registration, keep in mind the following tips to ensure a smooth and successful RERA registration process:

• Thoroughly review and understand the RERA guidelines specific to your state.
• Ensure all the required documents are complete and accurate.
• Double-check the application form for any errors or omissions.
• Be prepared to provide any additional information or clarification if requested by the authority.
• Monitor the progress of your application and follow up with the authority, if needed.

Importance of RERA registration

RERA registration plays a crucial role in ensuring transparency and accountability in the real estate sector. It protects homebuyers from fraudulent practices, delays in project completion, and ensures that developers deliver what was promised. Since developers have to provide details about their projects, buyers can get the necessary information to assess the credibility and viability of a potential property investment. This also helps in attracting potential homebuyers, as it instills trust and confidence in the project and the developer.

Applicability of RERA registration

The RERA registration process is not only required for the parties involved in real estate development but also applies to the types of properties. When the total development area of a project, whether residential or commercial, exceeds 500 square metres, or comprises more than 8 apartments, they are required to have a RERA registration.

Role of RERA registration in home loan approval

RERA registration is a vital factor considered by financial institutions when approving home loans for buyers. It assures lenders that the project is legitimate and follows established guidelines, lowering the risk associated with the property. Disclosure of project details like timelines, approvals, and finances also provides better transparency for the lender's risk assessment. This increases a borrower’s chances of home loan approval, provided they also meet the rest of the home loan eligibility criteria.

Impact of RERA registration on home loan interest rates

Since RERA-registered projects indicate a lower risk for the lenders, they may be willing to offer lower interest rates to the borrower. However, it is important to note that the project risk is only one factor. Home loan interest rates are influenced by several other factors such as the borrower's CIBIL score, age, income, and property value.

Conclusion

The RERA registration process is mandatory for developers and builders to ensure compliance with the law and protect the interests of homebuyers. By bringing transparency and accountability to the sector, real estate projects can gain the trust of buyers and lenders alike.

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