After enactment of RERA regulations, first question that comes in mind, Why RERA registration is required?” in this article, we have elaborated the RERA registration requirement.
As per section 3 of The Real Estate (Regulation and Development) Act, 2016 (here-in-after referred as RERA), which has come into force from 1st May, 2016 and has been notified to be commenced w.e.f. from 1st May 2017, No promoter shall
- book, sell or offer for sale, or
- invite persons to purchase in any manner
- any plot,
- apartment or building, as the case may be,
in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act.
- As per RERA, Real Estate Regulatory Authority shall be established State/UT wise. Hence, the promotor need to register the project with the RERA of the State where project is situated.
- Planning area shall be planning area or development area, whatever name called, designated by respective State/UT Government under the laws related to Town and Country Planning.
- Authority thinks necessary, in the interest of allottees, for projects which are developed beyond the planning area but with the requisite permission of the local authority, it may, by order, direct the promoter of such project to register with the Authority.
- Registration shall also be required for on-going projects on the date of commencement of this Act for which the completion certificate has not been issued. Such project shall be required to be registered within a period of 3 months from the date of commencement of this Act.
- For the purpose of this section, where the real estate project is to be developed in phases, every such phase shall be considered a standalone real estate project, and the promoter shall obtain registration under this Act for each phase separately.
Exemption from Registration
No registration of the real estate project shall be required if
- The area of land to be developed does not exceed 500 square meters or
- the number of apartments proposed to be developed does not exceed 8 inclusive of all phases.
Provided that, if the appropriate Government considers it necessary, it may, reduce the threshold below five hundred square meters or eight apartments, as the case may be, inclusive of all phases, for exemption from registration under this Act;
- If the promoter has received a completion certificate for a real estate project prior to the commencement of this Act.
Any contract for the purpose of renovation or repair or re-development which does not involve marketing, advertising selling or new allotment of any apartment, plot or building, as the case may be, under the real estate project.
Author – RERA Team, Centrik Business Solutions Pvt Ltd
Disclaimer – The above article is for educational purpose only. Readers are advised to take expert opinion before proceeding further. For further details, please contact us at email@example.com