Table of Contents
Quick Review on RERA Act: Registration Requirement & Process
Who is a Real Estate Agent?
Section 2 (zm) of RERA defines real estate agents. According to the definition, a “real estate agent” means any person, who negotiates or represents other persons for transfer of a real estate property by way of sale to another person and receives remuneration or fees or any other charges for his services whether as commission. A real estate agent is also a person who introduces, through any medium, prospective buyers and sellers to each other for negotiation for sale or purchase of real estate property, as the case may be, and includes property dealers, brokers, middlemen etc.
Brokers are mandated to show the facilities, aspects and amenities of the building project they are marketing and not to add anything additional or hide crucial information to confuse or mislead the buyer. Any deviation or default will attract penalties under the RERA Act, including the cancellation of the license.
What are the purposes of the Uttar Pradesh RERA Act?
The aim of the Uttar Pradesh RERA Act is:
- Set up RERA for the control and promotion of the real estate industry
- Ensure transparency in the selling of real estate projects
- Safeguarding market interest in the UP real estate sector
- Create an arbitration process for timely settlement of disputes
- Offer the right information about the builder or the developer
- Provide suggestions to the Govt on matters related to the development and promotion of the real estate sector in UP.
The requirement of RERA Registration:
To achieve the objective of regulating the real estate sector and to standardize this sector making it more transparent, the Act and the Rules made thereunder require for the real estate agents to obtain a registration certificate from the Real Estate Regulating Authority. RERA also says that the real estate agents will also be liable for any flaws in the project and can be prosecuted for any misconduct in the business. It is Section 9 (1) of RERA that mandates the registration. Section 9 prohibits an agent to operate his business without such registration.
Obligation on Registration of RERA
- The registration certificate should be displayed at the place of business.
- All advertisements, marketing, selling, or purchase papers, should have the registration number.
Applicability RERA Registration
The below entity/person can apply for UP RERA Registration for Projects.
- Societies
- Competent Authority
- Local Authority
- Individual
- Company
- Proprietorship Firm
- Partnership Firm
Exemption of RERA Registration
The specified persons are exempted from the registration of the real estate project with authority as follows:
- Prior to the commencement of the RERA, the promoter obtained the certificate of completion for the real estate project.
- The area of land proposed for construction does not exceed 500 square meters or the number of apartments built does not exceed eight apartments, and including phases, which are excluded from registration.
- The real estate project required for the remodeling or replacement or construction of projects shall be those projects which do not require the promotion, advertisement, sale or reallocation of an apartment.
Procedure for RERA Registration:
Rule 8 of the National Capital Territory of Delhi Real Estate (Regulation and Development) (General) Rules, 2016 (“Rules”) read with Section 9 (2) of RERA state that every real estate agent, required to register, shall make an application in writing to the Authority established under RERA Form ‘G’, in triplicate, until the application procedure is made web-based.
Documents Required for RERA Registration for the Project Registration
Application for RERA registration should be accompanied by the following documents:
- Name, registered address, type of enterprise (proprietorship, societies, partnership, company, etc.);
- In the case of a Real Estate Agency the particulars of incorporation including the bye-laws, MoA, AoA,
- Name, Address, contact details, and photographs of the real estate agent or director or Partners
- Last three years Income tax Return and if no IT returns are available, a declaration must be furnished.
- Past experience in this field of business. A declaration for this should be furnished.
- PAN & Aadhar cards
- Photo
- Address of place of business and
- Blank receipt (sample) for the commission that will be billed.
APPLICABLE FEES OF RERA REGISTRATION
Fee for RERA Registration
Applicable Fees UP RERA Registration Fees for Promoters
|
Type of Project |
Area |
|
|
Up to 1,000 sq. m. |
More than 1,000 sq. m. |
|
|
Commercial Project |
Rs. 20 per sq. m. |
Rs. 1,000 per sq. m. |
|
Residential Project |
Rs. 10 per sq. m. |
Rs. 500 per sq. m. |
Applicable Fees UP RERA Registration Fees for Real Estate Agents
|
Type of Real Estate Agent |
Registration Fee |
Renewal Fee |
|
Other than Individuals |
Rs. 2,50,000 |
Rs. 50,000 |
|
Individual |
Rs. 25,000 |
Rs. 5,000 |
UP RERA Other Charges
|
Particulars |
Fees |
|
Complaint Fee |
Rs. 1,000 |
|
Any kind of appeal (subection (1) under Section 44) |
Rs. 1,000 |
|
Withdrawal of application registration |
Rs. 50,000 or up to 10% of the registration fee, whichever is higher |
Registration fees for RERA - Maharashtra
- Rs 500 to Mahaonline for Maha-Rera website (plus taxes and bank charges, if any).
- Rs 10,000 for individual, proprietor, or proprietorship firm.
- Rs 1,00,000 for partnership firm, society, private Ltd/Ltd company, LLP, etc.
Once the above application and fee is submitted, the authorities will issue RERA registration certificate within 30 days of application. The RERA registration certificate should be displayed at the place of business. All promotional materials such as advertisements and brochures of the broker must mention the RERA registration number.
Book of records
- The agent shall maintain a book of accounts, records, and documents, separately for each real estate project.
Registration time frame
- The authorities shall deliver the registration number, along with the certificate, within 30 days from the date of registration.
The validity of registration/renewal
- Valid for five years. Renewal is to be done at least 60 days prior to the expiry of the registration.
Penalty on unregistered brokers involved in registered projects
- Rs 10,000 per day during the period of failure and a maximum of up to 5 percent of the value of the deal or project value.
The validity of RERA Registration: RERA registration for Brokers will be valid for 5 years from the date of the issue. The license can be renewed again for a period of 5 years, by submitting a renewal application 60 days prior to the expiry date.
CONDITIONS FOR REGISTRATION CERTIFICATE: The following conditions/ compliances are to be adhered to by the real estate agents after attaining the registration certificate:
- Not to facilitate the sale of unregistered property;
- Due maintenance of books of accounts records and documents as provided under rule 14;
- Avoid the use of any unfair trade practices as enumerated under the rules assistance to enable the allottee and promoter to exercise their respective rights and fulfill their respective obligations at the time of booking and sale of any plot, apartment, or building, as the case may be; and
- Generally, adhere to the provisions of the Act and the Rules.
These conditions are also mentioned as conditions in the registration certificate as well as Section 10 of RERA.
How to track the progress of the complaint on UP RERA
- Steps to verify the complaint status of UP RERA
- Check the official site of UP RERA: https:/up-rera.in/index
- Choose the 'Complaint Status' option from the 'Complaints' drop-down menu
- Submit the complaint number and the captcha code.
- Select 'Submit' to see the results
UP RERA Support line and Contact Details: You can go to the below contact information if you have any questions.
- Office Address: Naveen Bhavan, Rajya Niyojan Sansthan, Kala Kankar House, Old Hyderabad, Lucknow – 226007
- Email ID: contactuprera@up-rera.in
- UP RERA Helpline Numbers: 0522-2781448 / 49 (Lucknow), 0120-2326104 (NCR)
Deemed RERA Registration:
According to Section 9 (4) of the Act read with Rule 9 of the Rules, if the Authority does not grant or reject the registration certificate within 30 days, hereon the completion of the period specified under sub-section (3), if the applicant does not receive any communication about the deficiencies in his application or the rejection of his application, he shall be deemed to have been registered.
Why Required RERA Registration:
Real estate agents are the heart of the real estate industry. They are the mediators facilitating transactions between builder and buyer. With RERA that will soon come into force, all brokers will have to be mandatorily registered with the concerned state-level regulatory authorities. Real estate agents will be given a registration number by the authority which will be valid for 5 years and will be quoted in every transaction facilitated by him.
To stimulate the fair practice of doing business in the real estate sector, RERA mandates intermediaries (including intermediary websites) to get themselves registered and retain a valid RERA registration number before facilitating any real estate deal on the behalf of any real estate developer. The intermediary is also required to maintain and preserve account logs and other documents as prescribed by the Act. Also, he/she must facilitate all information and provide any further assistance as prescribed by the Act to the consumer.
If the intermediary fails to comply with the duties and responsibilities prescribed by the RERA, his/her registration can be revoked.
Punishments and Penalties for failing to comply Under RERA
On Homebuyers
|
Offense |
Punishments on Homebuyers |
|
Failure to comply with Tribunal |
Imprisonment for up to 1 year with or without fine of 10% of the estimated cost of the apartment |
|
Failure to comply with Authority |
Penalty on a daily basis which may |
On Agents of Project own
|
Offense |
Punishments On Agents of Project own
|
|
Failure to comply with Tribunal |
Imprisonment for up to 1 year with or without fine of 10% of the estimated cost of the project |
|
Non-registration of a project |
Rs. 10,000 per day of default which may extend up to 5% of the cost of property |
|
Failure to comply with Authority |
Penalty on a daily basis which may extend up to 5% of the estimated cost of plot |
On Promoters of company/ project own
|
Offense |
Punishments On Promoters of company/ project own |
|
Violation of law |
Imprisonment for up to 3 years with or without fine for 10% of the estimated cost of the project |
|
Other contraventions |
5% of the estimated cost of the project |
|
Non-registration of a project |
10% of the estimated cost of a real estate project |
|
Providing false information |
5% of the estimated cost of the project |
Further, he/she can be penalized up to Rs 10,000 per day, which may extend up to 5% of the total estimated cost of the unit in question. The intermediary can also face imprisonment up to one year if he/she breaches any orders given by the Appellate Tribunal.
