RERA certificate is a license or certificate issued by the real estate regulatory authority to the builders. RERA certificate is mandatory for the entire commercial and residential real estate project where the land is above 500 sq. meters or 8 apartments to apply for RERA Registration for a launching project. RERA (Real State Regulatory Authority) bill was drafted in the year 2013 and passed by the Rajya Sabha on 10 th March 2016 and on 15 th March 2016 by Lok Sabha. It came into force on 1 st May 2016 with 59 out of 92 sections. The remaining provisions came into force on 1 May 2017.
RERA (Regulation and Development) Act, 2016 has become 3 years old now. In these three years act has had its ups and downs. RERA (Real estate regulation and development act, 2016 brought rapid changes in the real estate sector of the Indian Economy. It brought transparency, reduced corruption and also brought entitlement rules and procedures into the real estate sector.
The aim of this act was to protect the rights of home- buyers and also aims to boost investment in the sector. This has also brought major changes in the real estate sector because before this act though the sector was regulated, many illegal activities were floating in the sector like the sector was fraught with the corruption. There were also some issues regarding the ownership of the houses among the buyers and the sellers and the main problem was that there was no coordination between the buying and selling of the home. Also, there were several issues regarding the ownership and delivery of flats. There was no obligation and the buyer had to wait for several years even after the promised time period of the delivery flat. This greatly impacted the performance of the sector and thus RERA act came into existence.
To overcome these problems, RERA has brought each and every activity of the buyer and seller under strict regulation. The introduction of this act has made the real estate sector highly regulated and has also helped to increase transparency in the real estate industry.
The main objective of RERA is to bring transparency and generate faith & confidence in the real estate buyers. Some objectives of RERA are given below:
To establish a RERA (Real estate regulatory authority) for the sole purpose of regulation in real estate
To protect the rights of the buyer
To prescribe the penalties for defaulters
To bring confidence/transparency in the real estate sector
To overcome the unnecessary delay in the approval and delivery of the project.
Transparency in projects
Timely delivery of projects
Boost investment for real estate
Consumer Forums for grievance
Increase confidence among consumers
Standardization of project quality
Accountability of agents, builders, and brokers
Increase professionalism in the real estate business
PAN card of the builder
Details of the land
Details of the project
If the builder is not the owner of the land, the consent letter of the actual owner with the documents will be required.
The balance sheet and ITR (Income tax return) of last 3 years of the builder
Information of the person involved (Architects, engineers, etc.)
Declaration by the builder of having the legal title of the land with proof.
Step1: Fill the form for RERA Certificate
Step2: Documents verification
Step3: Submitting the Application form
Step4: Issue of RERA Registration Certificate
1. What is RERA (Real State Regulatory Authority) Act, 2016?
RERA (Real State Regulatory Authority) Act, 2016 is an initiative taken by the Indian government to enhance the transparency of the real estate related transaction by establishing a systematic and regulatory environment, thereby safeguarding the consumer interest.
2. When was the bill proposed?
RERA (Real State Regulatory Authority) bill was drafted in the year 2013 and passed by the Rajya Sabha on 10 th March 2016 and on 15 th March 2016 by Lok Sabha. It came into force on 1 st May 2016.
3. What are the objectives of RERA, 2016
To enhance the transparency in the sale of real estate projects
To establish RERA (Real Estate Regulatory Authority)
To protect the consumer interest in the real estate sector
To ensure the defined process and efficient handling of disputes
4. Is the RERA Act, 2016 applicable to all the states in India?
Yes, this tax applies to all the states in India except Jammu & Kashmir
5. Is RERA registration mandatory?
Real estate makes it necessary for all residential and commercial real estate projects where the land is over 500 square meters to register with the Real Estate Regulatory Authority (RERA)
6. What are documents required by a Real estate developer while registering a project with the RERA?
Details of the project such as name, type, address, photographs of the promoter, etc
Details of the project launched by real estate developer in the preceding 5 years
Location of a project with a clear division of the land of the project
Approval certificate obtained from the competent authority separately for each project.
Proof stating that the land of the project is verified and authenticated and also the developer has legal title to it.
A written declaration by the consumer that the project will be completed within the stated period of time.
7. What is the validity of the Registration under RERA?
Registration shall be valid for the period required to complete the project or phase declared by the builder.
8. Is the RERA Act applicable to both Residential and commercial projects?
At first, the bill was passed to cover only residential projects. On further alteration, commercial projects including shops, offices, and buildings were also included.
9. In how many days Registration will be granted by the authority?
The authority shall grant registration within 30 days to the applicant
10. What to do if authority rejects the registration?
If the authority rejects or fails to grant the registration, the project shall be deemed to have been registered and authority will provide a registration number within 7 days along with the ID and password to the promoter for accessing the website of authority and to create his webpage and fill the details of the proposed project.