Introduction

The Real Estate (Regulation and Development) Act, 2016 (commonly referred to as the Real Estate Act or RERA) is a comprehensive act on regulating the real estate sector, enacted by the Government of India.

The Real Estate (Regulation and Development) Act, 2016.

Purpose

Customer protection:

Ensure that home buyers are protected and that a mechanism is put in place to resolve disputes quickly.

Promoting transparency:

Increase transparency in the real estate industry regarding project details, approvals and timelines.

Real Estate Industry Regulations:

Create a regulatory framework to govern real estate transactions and services.

Investment incentive:

Create a more reliable real estate investment environment.

Which organizations should be registered under RERA

Under the Real Estate (Regulation and Development) Act, 2016 (RERA), many companies and real estate developers are required to register with the Real Estate Regulatory Authority of the concerned states. Registration requirements have been established to ensure transparency, accountability and protection for home buyers. . Here’s what you need to register under RERA:

1. Real estate services

Registration checks

New Projects: All new real estate projects (residential and commercial) that offer more than 500 square meters of land or have more than 8 units must be registered

Ongoing Projects: Projects which are under construction and have not received the completion certificate before the commencement of RERA must also be registered.

2.Suppliers have to submit substantial project information, such as program description (name, type Required Information Agents must provide: Name, contact information, and photograph (for individual agents) Detail about business and a registration certificate (for agencies) Past experience and track record in real estate arrangements.

3.Ongoing and New Projects

Old projects that were ongoing when RERA came into force and didn’t have a completion certificate have to register with the respective State RERA authority. Provide the same comprehensive detail and comply with RERA rules.

4.Phased Projects

If a builder is constructing a project in phases, each phase must be registered as an individual project. Each must meet RERA requirements, including having separate completion deadlines and financial disclosures.

Exemptions from Registration

A few real estate projects and activities are exempt from registration under the Real Estate (Regulation and Development) Act, 2016 (RERA). These are designed to lessen the regulatory burden for modest proposals and specific categories of projects. Here are a key list of exemptions from RERA registration:

1.Small Projects Size Criteria:

Projects that have less than 500 square meters of area to be developed or less than 8 proposed apartments (collectively all phases) do not have to be registered under RERA. Implication: Smaller developers and individual builders working on minor projects do not need to comply with the registration process.

2.Projects Completed

Completion Certificate: Projects that have a completion certificate before the RERA commencement are exempt. Developers have finished their projects and received necessary certificates do not register under RERA.

3. Projects Renovation and Repair

Non-Sale Projects: Projects that involve fixing, repair, or redevelopment of the project, without involving marketing, advertising, selling, or new allotment of any apartments, plots, or buildings, are exempt. What it means: Renovation, repair or redevelopment projects undertaken by the existing occupants or housing societies, without the purpose of selling, do not need to be registered.

4. Government Projects Specific Exemptions:

Specific government projects may be exempted from registering under RERA as per the rules of state or the directives of central government. What it means: The projects related to public infrastructure and the projects taken up by the government bodies for the benefit of the general public may not require registration.

The Real Estate Regulatory Authorities have been established in each of the states and union territories under the Real Estate (Regulation and Development) Act, 2016.

Andhra Pradesh Real Estate Regulatory Authority (APRERA):

Andhra Pradesh Real Estate Regulatory Authority.

The AP Real Estate Regulatory Authority (APRERA) is the nodal government department constituted to administer and regulate RERA Act, 2016 in Andhra Pradesh. Thus, all real estate projects developed or offered in the said area are required to be registered with APRERA established under this act and also all real estate agents dealing in properties located within the territory are also required to get register under the aforesaid enactment so as to strictly abide by its provisions.

Mandatory Registration of Projects and Agents

1. Mandatory Registration:

Real estate projects and real estate agents in Andhra Pradesh are required to register with APRERA. Hence, development projects totalizing over 500 square meters or more than eight apartments (applied to the totality of the project) require a registration with APRERA before sale.

2. Information in the project disclosures:

Particulars of the project: The developers have to disclose every detail starting from approved plans, land status, development stages and phase timings during completion. This public information makes the system of APRERA transparent and this transparency is being provided to the public through the online portal. Accountability and Transparency

3. Online Portal:

A web-based portal is governed by APRERA where developers are expected to upload the information and project updates. The portal provides project information, status updates, and other documents relevant to their program allowing consumers the most accurate information possible.

4. Financial Discipline:

70% of the money that developers received from buyers must be sent to an independent escrow account. The rationale is that these funds should be used only for construction of the projects and the land related costs, so as to prevent diversion of fund and maintain financial discipline.

5. Standardized Agreements:

Standard model agreements for sale are required to be used in order to minimize the scope of disputes/ ambiguities and to protect consumers from unfair trade practices.

6.Timely completion :

The developers should complete the projects at the specified time of registration. Justifications must be provided for delays, and developers will be penalized if they do not conform to the agreed timelines

7. Redressal Mechanism:

APRERA gives a provision for the framework to address the consumer grievances.

All project delays, non-adherence to terms by developers and quality issues can be complained by the buyers against their builders.

These disputes are resolved within a reasonable time by APRERA.

8. Frequent Maintenance Checks:

APRERA carries out frequent audits and inspections as a measure to maintain the standards of the registered projects with APRERA, says the RERA provisions.

Developers found to be in non-compliance with the rules may be subject to sanctions, project deregistration, and other enforcement measures.

9. Increased Transparency:

APRERA has brought about transparency in the real estate sector by making the project information accessible to all. It has helped to establish trust between consumers and developers.

10. Enhanced Consumer Confidence:

The confidence of buyers in the real estate market has been revived by APRERA providing a credible redressal mechanism as well as ensuring project completions.

11. Accountability of Developers:

The teams are less likely to fail, since there are consequences for noncompliance among developers and the threat of fines motivates adherence to project timelines and provided specifications.

Challenges

Consistent implementation of RERA regulations is still a challenge across the state.

Developers as well as consumers need to be constantly educated about the Rights and Responsibilities under RERA.

The ability to process a high volume of new registrations and complaints in a timely manner is important for APRERA to be effective in the long run.

Business Registration

NGO

COMPLIANCES

Change In Business

BIS & CDSCO

Government Registration

FSSAI

Environmental

Real Estate Regulation Authority of Andhra Pradesh (APRERA)

Subhodeep

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