The Real Estate (Regulation and Development) Act, 2016 (RERA) brings transparency and accountability to the real estate sector. Each state and union territory has its own Real Estate Regulatory Authority and online portal. Promoters must register eligible projects, and real estate agents must register themselves, before advertising or selling.
Who Must Register
- Promoters of residential and commercial projects where the land exceeds 500 square metres or the project has more than 8 apartments, including all phases
- Ongoing projects that had not received a completion certificate when RERA came into force
- Real estate agents who facilitate the sale or purchase of units in registered projects
Key Obligations under RERA
- 70% of amounts collected from buyers must be deposited in a separate escrow account and used only for land and construction costs
- Project details, approvals, layout plans and progress must be uploaded on the state RERA portal
- Quarterly progress updates must be filed
- Structural defects must be rectified for five years after possession
- Advertisements must display the RERA registration number
Documents Required for Project Registration
- PAN, incorporation documents and photographs of the promoter
- Audited balance sheets and income tax returns of the last three years
- Land title documents, encumbrance certificate and development agreements
- Sanctioned layout, building plans and approvals from competent authorities
- Project schedule, specifications and brochure
- Proforma allotment letter, agreement for sale and conveyance deed
- Details of the separate bank account
Documents Required for Agent Registration
- PAN, Aadhaar and photograph (for individuals); incorporation documents (for firms and companies)
- Address proof of the place of business
- Income tax returns for the preceding three years, where applicable
Process
- Create a user account on the relevant state RERA portal
- Upload promoter or agent details and documents
- Pay the fee online and submit the application
- Submit the signed hard copy where the state requires it
- Receive the RERA registration number and certificate
Frequently Asked Questions
Can a project be advertised before RERA registration?
No. Promoters cannot advertise, market, book or sell units in a project that requires registration until it is registered.
How long is an agent's registration valid?
Validity is set by the state rules, commonly five years, and must be renewed before expiry.
What is the penalty for not registering a project?
Penalties can go up to 10% of the estimated project cost, with further penalties and imprisonment for continued non-compliance.