What is RERA License?
A RERA License is a mandatory registration required for real estate projects under the Real Estate (Regulation and Development) Act, 2016 (RERA) in India. This legislation was introduced to bring greater transparency, accountability, and efficiency to the real estate sector, safeguarding the interests of homebuyers and ensuring that developers adhere to fair and ethical practices. Any real estate project exceeding a plot size of 500 square meters or having more than eight units must be registered under RERA before it can be advertised, sold, or booked. The registration process involves submitting comprehensive details about the project, including land titles, necessary approvals, timelines, and financial information.
The RERA license ensures that developers operate within a regulated environment where buyers are protected from fraud and delays. Developers are required to regularly update the RERA authority and buyers on the progress of the project, including financial status and construction milestones. This transparency helps buyers make informed decisions and holds developers accountable for meeting promised deadlines and quality standards. The law empowers buyers with specific rights, such as timely possession of their property, quality construction, and accurate information about the project’s status.
Each state and Union Territory in India has its own RERA authority, which manages the registration and regulation of real estate projects within its jurisdiction. Developers who fail to comply with RERA regulations face strict penalties, including fines and possible imprisonment. This state-level regulation ensures that real estate activities are monitored closely, providing a safer and more secure environment for buyers. The RERA license is, therefore, a critical aspect of the real estate industry in India, fostering trust and transparency between developers and buyers.
What are the Benefits of an RERA License?
Transparency
Developers must provide comprehensive information about the project, including land status, approvals, and timelines. This ensures that buyers have a clear understanding of what they are investing in and helps prevent misunderstandings.
Timely Project Delivery
RERA enforces stringent deadlines for project completion. By adhering to these deadlines, developers minimize delays, ensuring that buyers receive their property on schedule and as promised.
Buyers' Protection
Homebuyers have rights to address grievances related to construction quality, project delays, and misleading information. This protection enables buyers to seek redressal and ensures that developers are held accountable.
Financial Discipline
Developers are restricted to requesting no more than 10% of the property cost as an advance before signing the sale agreement, which safeguards buyers from unfair financial demands.
Quality Assurance
Developers are required to address and rectify any structural defects or poor construction quality for up to five years after possession. This commitment to quality ensures that buyers receive a durable and well-constructed property.
Reduced Risk of Fraud
Mandatory registration and disclosure requirements help to mitigate the risk of fraudulent practices, ensuring that only legitimate and compliant projects are marketed.
Who can apply for a RERA License?
Any individual or entity intending to operate a private security agency in India can apply for a RERA license. This includes:
Real estate developers
Builders
Construction companies
Property promoters
Project managers
Real estate agents
Real estate consultants
Role of Shamkris and Process of RERA License
Shamkris adopts a results-oriented approach to compliance with mandatory licence requirements in the organization. A simple and guidance methodology help organisation to achieve licence in a timely manner and cost-effective. Shamkris support 100% in advisory, Guidance, Compliance with respect to license requirements to obtain approval.
The implementation process is described below:
- Advisory for the document required
- Preparation of documents as per application & list of documents.
- Application File
- Inspection by the department if required
- Liason department
- Yearly Compliance if Applicable
- Renewal when due
FAQ
Developers, builders, and property promoters who are involved in the development of real estate projects with a plot size of more than 500 square meters or more than 8 units must obtain a RERA License.
To apply for a RERA License, submit an application to the relevant state RERA authority, providing details about the project, including land title, project plans, approvals, and financial information.
Commonly required documents include land title deeds, project layout plans, approvals from local authorities, financial statements, and details of the project’s completion timeline
The RERA License is valid for the duration of the project until its completion and handover to buyers. It must be renewed if the project is extended or modified.
Yes, existing projects that meet the eligibility criteria can apply for RERA registration. They must comply with all RERA regulations, including providing accurate information about the project’s progress.
Developers who do not obtain a RERA License may face penalties, fines, or legal action. They cannot legally advertise, sell, or book units in the project without registration.
No, a RERA License is non-transferable. If there is a change in the developer or promoter, the new entity must apply for a new RERA License.
Buyers can verify the RERA License status of a project by checking the RERA authority’s official website or contacting the state RERA office directly.
In some states, real estate agents also need to register under RERA to carry out real estate transactions. It is essential to check the specific requirements of the state RERA authority.
Complaints can be filed with the state RERA authority, which will investigate the matter and take appropriate action against non-compliant developers.