RERA Registration Process for Builders

The Real Estate (Regulation and Development) Act, 2016, mandates all developers of real estate projects bigger than 500 sq m or those with more than eight apartments to register the projects under the respective State RERA authorities. Not only the projects, but developers must register themselves and all their promoters under the Act before beginning the formal marketing and sales of a project. Only those projects, where the number of proposed apartments for development are lesser than eight, and where the land area is lower than 500 sq mt, are exempt from the mandate to get registered under RERA. Also, projects to repair, renovate or redevelop, which do not encompass marketing, sales or the new allotment of any plot, building or apartment are exempt from getting registered.

How can developers register their projects under RERA?

Every developer, for registering their project, must submit an application to the concerned Real Estate Regulatory Authority in the manner, form, within such time and supplemented by such fee as specified by that Authority. The developer has to include the following details and documents with the application:

• Concise details of the developer's enterprise, including the name, type of enterprise, whether it is a company, partnership, or a proprietorship, the registered address, as well as the name and photograph of the developer.
• Concise information on projects launched by the developer within the last five years, and the current status of the same. Details of any cases or payments pending on behalf of the developer.
• An authenticated copy of the commencement certificate and requisite approvals from the concerned competent Authority for the specified project.
• If the project is to be completed in phases, the authenticated copy of the afore-mentioned requirements from the concerned competent Authority for each project phase.
• The layout plan, sanctioned plan and specifications of a specific phase or the proposed project, as authorised by the concerned competent Authority.
• Details of all development work to be completed in the project.
• Project location, details of the demarcation of land to be used and its boundaries, accompanied by the longitude and latitude of the project's endpoints.
• Pro forma of the sale agreement, letter of allotment, and the conveyance deed purposed to be signed with allottees of the project.
• The quantity, configuration and carpet area of apartments for sale in the project, accompanied by exclusive open terrace areas, and verandah or exclusive balcony areas, if any are included with the apartment for sale.
• Details about the area and quantity of garages for sale in the proposed project. Name and addresses of people concerned with the project's development, such as of the contractor, architect, real estate agents, and the structural engineer.

The developer has to include a declaration backed by an affidavit signed by him/her or by any authorised person. A total of six elements have to be covered in this affidavit, with them being:

1. The developer has a legal title to the land over which a project is proposed to be developed. If the concerned land is under the ownership of another person, then lawful documents for authentication of such title are to be included.
2. The land over which development is proposed is free from all encumbrances, or, if any cases do exist, then the details of the same consisting of the title, rights, interest or name of the party with whom the conflict exists.
3. The proposed period of project or phase completion.
4. The developer shall deposit 70 percent of the amount given by the allottees for the project, in a separate escrow account, which has to be held in a scheduled bank. The developer can only withdraw funds from this account to cover the costs of the project, with the withdrawal being in proportion to the percentage of project completion. A certification by an architect, engineer and a practising chartered accountant stating that the withdrawal is being made proportionately for the reasons mentioned above, is required.
   
   The developer will need to appoint a practising chartered accountant to audit his/her bank accounts after the end of every financial year. The statement of accounts to be produced annually by the said chartered accountant shall certify that the amounts withdrawn from the specified bank accounts were in accordance with the percentage of project completion and that the amounts were utilised only for the project in question. 
5. The developer, in a timely manner, will take all pending requisite approvals from the concerned competent authorities.
6. The developer has attached all other documents as required under the rules of RERA.