RERA registration
RERA registration is the registration of a real estate project with the authority of the state where the project sits. Company Suggestion files it under the Real Estate (Regulation and Development) Act, 2016. A promoter cannot advertise, market, book, or sell a plot, apartment, or building in that project without it.
What is RERA registration?
Section 3 has been in force since 1 May 2017. The authority is the one constituted for the state in which the land lies. The registration number is quoted in every advertisement and in the agreement for sale.
Section 4(2)(l)(D) requires 70 per cent of the amounts realised from allottees to be deposited in a separate account for that project. Withdrawal follows the percentage of completion. The annual check on that account is the RERA audit.
Which projects must register?
The promoter registers before the first advertisement or booking, unless an exemption applies.
- The central Act exempts land not exceeding 500 square metres, or a project of not more than 8 apartments, inclusive of all phases. A state can reduce that threshold.
- A project that had received a completion certificate before the Act commenced is outside section 3.
- Renovation or repair that does not involve marketing, booking, or selling is outside section 3.
- A real estate agent registers separately and quotes the agent’s own number.
Which papers does the application need?
The application shows title, the approved plan, and the money trail.
- Title to the land, and the sanctioned plan and layout
- Carpet area of the apartments, and the proforma agreement for sale
- Details of the promoter, including PAN
- Approvals and the separate project account
- The completion period the promoter declares
What are the registration steps?
Company Suggestion registers the project in four steps.
- The project is checked against the state’s threshold, which may be tighter than 500 square metres or 8 apartments.
- The application is filed with the state authority, with title, plans, and the proforma agreement.
- The registration number is issued for the declared completion period.
- Quarterly updates and the annual audit follow on the compliance page.
Frequently asked questions
4 questions cover the rules that decide this registration.
Which projects are exempt?
Under the central Act, a project where the land does not exceed 500 square metres, or where the apartments do not exceed 8 including all phases. A state can set a lower limit. A project that already had a completion certificate when the Act began, and a repair that is not marketed, are also outside section 3.
Where does the buyers’ money go?
Seventy per cent of the amounts realised from allottees is deposited in a separate account for that project. It is withdrawn only in proportion to the percentage of completion, after the certificates the Act requires.
Does an agent register too?
Yes. A real estate agent registers with the same state authority, separately from the project, and quotes that registration number. The agent’s registration is not the project’s registration.
How long does registration last?
For the completion period the promoter declares in the application. An extension is a further application to the authority. It is not automatic.