Real Estate Regulatory Authority’s (RERA) certificates are issued by state RERA’s to builders who register their projects with the state RERA for sale. The RERA Act prohibits builders from promoting or marketing their projects for sale without a RERA Certificate.
As an example, a builder who registers their project with RERA MP will receive a RERA Certificate once they successfully complete the RERA registration process. This RERA Certificate is basically proof to the builder that a specific project is RERA approved. The RERA Certificate also enables the builder to obtain funding for the construction of a project from banks and NBFCs.
Moreover, the occupancy certificate issued by RERA declares that the project was successfully completed by the builder. The builder can successfully transfer ownership of the flat to the buyer after receiving the occupancy RERA Certificate from the authority.
What is a RERA certificate?
The RERA certificate is issued by the real estate regulatory authority when a builder registers a project with them. The RERA certificate is a legal document. RERA certificates confirm that a project is registered under RERA. Furthermore, the document contains the builder’s details and the project registration number.
A RERA certificate can also be obtained by registering with the real estate regulatory authority. A RERA certificate is also required for builders to sell their properties. Also, it is mandatory for real estate agents to get a RERA certificate to deal in the sale and purchase of RERA-approved properties and projects.
A RERA occupancy certificate is also issued to the builder after the project is complete. As soon as this certificate is issued to the builder, the property can be legally transferred. By using an occupancy certificate RERA, the property will be considered under construction and will not be legally owned by the buyer.
How to get a RERA certificate?
For the RERA registration certificate, the builder must submit several documents. There are three types of certificates for RERA: an engineers certification, a ca certification, and an architectural certification. For a RERA certificate, these forms must be filled out and submitted at the time of registration.
To obtain a RERA certificate, what documents are required?
Various documents are needed by the builder to get the RERA registration certificate, including proof of identity, proof of address, and financial documents. In order to obtain a RERA certificate, real estate agents also need the same documents. In order to proceed, the following documents must be submitted
- Details of the PAN card
- Details of the project, such as the number of floors, the parking area, and the carpeting size
- Land records and titles
- Project sanction plan
- Plan of the project’s layout in detail
- RERA certificate for engineers
- Registration for CA RERA
- An ITR for the last three years of the builder
- The balance sheet and other accounting records
How to check a RERA certificate?
To check or download the RERA certificate, the builder must go to the state’s RERA website. A builder can check the status of his application on the website once he registers the project. The builder can download the RERA registration certificate online from the RERA website after the application has been approved.
Why is getting a RERA certificate mandatory?
It is mandatory for builders to get a RERA registration certificate because if they don’t, they will be penalized heavily. In the same way, the agents are also responsible.
The builders and agents are liable for penalties if they fail to obtain the RERA registration certificate. Agents will be penalized 10,000 rupees daily or 5% of the cost of the project.
Suppose a builder doesn’t get the RERA registration certificate. As a penalty, they will have to pay 10% of the total project estimate costs. Furthermore, if the builder does not comply with RERA rules, he will have to pay a daily penalty of 5% of the project cost.
Regulatory authorities enforce strict adherence to guidelines and have the authority to fine builders if they fail to comply. Further, if a builder fails to comply with the Appellate Tribunal’s decision, then imprisonment for one year is possible. Further, a home loan is required to purchase a property in a project. After the RERA certificate for that project is issued, the home loan process for that property goes smoothly. As per the RERA mandate, banks give loans only to residential and commercial properties with a RERA certificate.
Benefits of getting a RERA certificate
Builders are required to obtain a RERA certificate. Additionally, it is highly beneficial both to buyers and builders, and real estate agents. A RERA certificate has the following benefits.
- Ensures that certain builders do not commit malpractice.
- All builders must follow standard rules and regulations.
- Real estate industry transparency should be increased.
- Ensure that the buyer’s rights are protected.
- Assuring that builders keep their promises to buyers
- Ensure that projects are delivered on time
How does a RERA certificate work?
RERA is currently applicable in almost all states. Nevertheless, certain projects are not covered by RERA for a variety of reasons. The majority of the projects, however, are RERA-compliant. Here are some examples of projects covered by RERA.
- All projects completed prior to the launch of the RERA act are covered by it.
- Under the RERA act, under-construction projects will be covered. The builder must provide regular updates for these under-construction projects to obtain RERA registration.
RERA does not cover projects that were completed previously but are currently being renovated or repaired. Any extension to an existing project or any new flats being developed by a builder in a project will have to be RERA certified first.