Real Estate Regulatory Authority (RERA) Registration

REAL ESTATE REGULATORY AUTHORITY (RERA) is an act for regulation and promotion of the real estate sector to ensure the sale of apartment, plot or building in an efficient and transparent manner. The Act aims to protect the interest of consumers. It was enacted by the Parliament in May 2016 and the Act has come into force with all its 92 sections from 1st May 2017 across India. So far, 14 states and union territories such as Uttar Pradesh, Gujarat, Bihar, Madhya Pradesh, Odisha, Andhra Pradesh, and Maharashtra have notified their rules with RERA and the others are expected to follow suit.
The implementation of RERA is expected to bring relief to the homebuyers as builders will be accountable for the timely delivery of the projects and to protect buyers from fraud sellers. The developers would also gain from the increased confidence of the consumers in a regulated environment.
It is mandatory for the developers to get all approvals from various government agencies before launching a project and disclose all the information on the website that the respective state RERA regulatory authority will set up.
Real estate agents will be provided a registration number by the regulator which they have to mention in every property sale. This will help in eliminating the possibility of misleading the purchaser. The authority has wide ranging powers to impose penalties and imprisonment of agents in case of violation of the law. SAI ENTERPRISES provide all the solutions and services in terms of RERA Registration in MP State.
  • Types of Rera Registration In Madhya Pradesh:
    Project Registration
    Agent Registration
  • Validity Period of Rera Registration:
    Registration validity is 5 (Five) Years from date of Registration.
  • Govt. Fees For Rera - Agent Registration:
    Rs. 10,000, for Individual Real Estate Agent
    Rs. 50,000, for Other than Individual Real Estate Agent
    (Firm/Company/Society/Trust)

Benefits Of Rera For Homebuyers

  • Builders have to disclose every detail of the project on the website of authority and update these on a regular basis.
  • The buyer will have to pay only on the basis of carpet area (area within walls). The builder cannot charge them for the super built-up area (lift, balcony, stairs, and lobby).
  • Timely completion of projects as 70% of the money collected from the customer has to be transferred in a separate bank account and can be used only for the purpose of completing the construction of the project.
  • Any delay in completion of the project will require the developer to pay an interest rate of 2% above SBI’s Marginal cost of lending rate to the buyer for a delayed period.
  • Any defect in the building will be the responsibility of the builder for a period of 5 years.
  • Any disputes with the buyers need to be resolved within 120 days.

Key Provisions of RERA

  • RERA will be followed in every state of India and this regulation applies to both residential and commercial properties.
  • The sale of property will be based on carpet area and not on super built-up area.
  • Builders are required to deposit 70% of the funds collected from buyers in a separate bank account for the construction of the project.
  • Developers have to disclose the project details (financial statements, legal title deed, and others) on the website and update it on a quarterly basis related to the construction progress.
  • Projects with a plot size of a minimum 500 sq. mt or 8 apartments need to be registered with the RERA Authority.
  • Builders require submitting the original approved plans for their project and the alterations made to RERA.
  • Imprisonment of up to 3 years for the developers and up to 1 year for agents and buyers for violation of law.
  • Any structural or workmanship defects in the building during the period of 5 years must be rectified within 30 days by the promoter without any further charges. If he fails to do so, the buyer is entitled to receive the compensation under RERA.
  • Developers cannot demand more than 10% of the property cost as an advanced payment booking amount before signing a registered sale agreement.
  • Developers are not allowed to advertise, sell, offer, market or book any plot or apartment without registering to the authority.
  • The buyer can contact the developer in writing within 1 year of taking possession to demand the shortcomings in the project. Filling of complaints under RERARERA will be followed in every state of India and this regulation applies to both residential and commercial properties.
  • Developers have to disclose the project details (financial statements, a legal title deed, and others) on the website and update it on a quarterly basis related to the construction progress.
  • Developers and buyers both have to pay the same interest rate of 2% above SBI’s MCLR in case of any delay.

Rera Registration Fees For New Projects.

  • For PLOTTED RESIDENTIAL projects, Rs. 10 per square meter multiplied by the permissible FAR for all plots, including plots for common educational, health or recreational facilities, excepting green areas and roads. Formula for calculating the same will be =[Area of total plotted land in square meters *FAR* 10]
  • For CONSTRUCTED RESIDENTIAL projects, Rs. 10 per square meter multiplied by the proposed carpet area of the residential units and common facilities and all other connected constructions (except shops, which will have to be at the commercial rate). Formula for calculating the same will be = [Carpet Area of Construction (residential units plus all common facilities) in square meters * 10] + [Carpet area of all commercial units in square meters*20]
  • For PLOTTED COMMERCIAL projects, Rupees 20 per square meter multiplied by the permissible FAR for commercial plots or plots for any other non-residential use. Formula for calculating the same will be = [Area of total plotted land in square meters *FAR*20]
  • For CONSTRUCTED COMMERCIAL projects, Rs. 20 per square meter multiplied by the proposed carpet area of the constructed commercial and non-residential constructions. Formula for calculating the same will be = [Carpet area of all constructed commercial and non-residential constructions in square meters *20]
  • In case of MIXED PROJECTS the fee shall be calculated in proportion to the area proposed for residential and non-residential use; provided that educational, health and recreational facilities in a residential project shall be treated as residential. Please note that shops in a residential project will be treated as commercial.

Rera Registration Fees For Existing Incomplete Projects

  • For PLOTTED RESIDENTIAL projects, three-fourth multiplied by Rupees 10 per square meter multiplied by the permissible FAR for all plots, including plots for common educational, health or recreational facilities, excepting green areas and roads. Formula for calculating the same will be =¾ [Area of total plotted land in square meters *FAR* 10]
  • For CONSTRUCTED RESIDENTIAL projects, three-fourth multiplied by Rupees 10 per square meter multiplied by the proposed carpet area of the residential units and common facilities and all other connected constructions (except shops, which will have to be at the commercial rate). Formula for calculating the same will be = ¾([Carpet Area of Construction (residential units plus all common facilities) in square meters * 10] + [Carpet area of all commercial units in square meters*20])
  • For PLOTTED COMMERCIAL projects, three-fourth multiplied by Rupees 20 per square meter multiplied by the permissible FAR for commercial plots or plots for any other non-residential use. Formula for calculating the same will be = ¾ [Area of total plotted land in square meters*FAR*20]
  • For CONSTRUCTED COMMERCIAL projects, three-fourth multiplied by Rupees 20 per square meter multiplied by the proposed carpet area of the constructed commercial and non-residential constructions. Formula for calculating the same will be = ¾ [Carpet area of all constructed commercial and non-residential constructions in square meters*20]
  • In case of MIXED PROJECTS the fee shall three-fourth calculated in proportion to the area proposed for residential and non-residential use; provided that educational, health and recreational facilities in a residential project shall be treated as residential. Please note that shops in a residential project will be treated as commercial.

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
  • The 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)