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Real Estate Regulatory Authority (RERA) Compliance
RERA Compliance refers to adhering to the regulations under the Real Estate (Regulation and Development) Act, 2016, which aims to promote transparency, accountability, and efficiency in the real estate sector. The Act mandates registration of real estate projects and agents with the respective state RERA authority, along with periodic updates and disclosures.
RERA was introduced to protect homebuyers’ interests and standardize the real estate industry. Compliance ensures that developers and agents adhere to legal requirements, provide accurate project information, and complete projects on time. Non-compliance can result in penalties, project delays, or cancellation of registration.
Importance
1. Legal Mandate : Ensures adherence to the Real Estate Act, 2016.
2. Buyer Confidence : Builds trust among homebuyers by ensuring transparency.
3. Avoids Penalties : Prevents fines, project delays, or license cancellations.
4. Promotes Fair Practices : Eliminates fraudulent practices in the real estate market.
5. Dispute Resolution : Provides an effective grievance redressal mechanism for buyers and stakeholders.
Applicability
- Real Estate Projects :
- Projects exceeding 500 square meters or involving 8 or more units must register under RERA.
- Real Estate Agents :
- Brokers, agents, and real estate consultancies facilitating transactions must register under RERA.
- Exemptions :
- Renovation or redevelopment projects not involving new allotments or advertisements.
Key Compliance Requirements
- Project Registration:
- Developers must register real estate projects with the respective state RERA authority.
- Agent Registration:
- Real estate agents must obtain RERA registration to operate legally.
- Disclosure of Project Details:
- Provide detailed information about project plans, approvals, and completion timelines.
- Fund Segregation:
- Deposit 70% of the project funds in a designated escrow account for construction and land costs.
- Quarterly Updates:
- Submit progress updates, including construction status, approvals, and sales reports.
- Grievance Redressal:
- Respond to buyer grievances through the RERA platform.
Documents Required
For Project Registration
For Agent Registration
Features
Features & Benefits of Real Estate Regulatory Authority (RERA) Compliance
Segregated Funds
Buyer Protection
Digital Platform
Regular Updates
Real Estate Regulatory Authority
Penalty for Non-Compliance
Dispute Redressal
Escrow Account Management
Boosts Investor Confidence
Uniform Guidelines Across States
Comparison with Related Services
| Feature | RERA Compliance | GST Compliance | Corporate Compliance |
|---|---|---|---|
| Objective | Transparency in real estate | Regulate GST transactions | Ensure corporate governance |
| Applicability | Real estate projects/agents | GST-registered entities | All registered companies |
| Regulatory Body | State RERA Authority | GST Department | MCA |
| Filing Frequency | Quarterly/Periodic | Monthly/Quarterly/Annually | Annually/Event-based |
| Penalty for Non-Compliance | High | High | High |
Frequently Asked Questions
Who is required to register under RERA?
Developers of real estate projects exceeding 500 square meters or 8 units and real estate agents facilitating transactions must register.
What are the penalties for non-compliance with RERA?
Non-compliance can attract fines of up to 10% of the project cost, imprisonment, or cancellation of the RERA registration.
What is the purpose of an escrow account under RERA?
An escrow account ensures that 70% of project funds are used solely for land and construction costs to prevent fund diversion.
Can homebuyers file complaints under RERA?
Yes, homebuyers can file grievances through the RERA platform for issues like project delays or false advertising.
Is RERA compliance applicable across India?
Yes, RERA applies to all states and union territories in India, with state-specific regulations.
What is the validity of an agent’s RERA registration?
RERA registration for agents is typically valid for 5 years and must be renewed before expiry.