TN RERA Registration for Agents

RERA Registration

RERA Registration is a mandatory procedure regulated by the Real Estate (Regulation & Development) Act. RERA was established to address prevalent issues within the real estate sector. It is compulsory to obtain RERA registration before engaging in advertising, marketing, booking, selling, offering for sale, or inviting individuals to invest in any plot or building. The primary objectives of this registration are as follows:

• Ensuring Transparency
• Promoting Accountability to mitigate the risk of fraudulent practices
• Safeguarding the interests of both developers and purchasers

The enforcement of the RERA Act takes place at the state level, with responsible authorities overseeing the following:

• Registration and necessary approvals for commercial properties and residential flats under RERA
• Regulation of sale and purchase transactions involving real estate properties.

Role and RERA Registration Requirements for Real Estate Agents

A "real estate agent" is a person who acts as a representative and aids others in real estate transactions while earning fees for their services. Real estate agents encompass property dealers, brokers, and intermediaries. Their primary responsibilities revolve around facilitating connections and negotiating agreements to lease or sell land, plots, buildings, and apartments. In India, the Real Estate Regulatory Authority (RERA) Act stipulates that all real estate agents must obtain RERA registration.

RERA Registration Applicability

The applicability of RERA registration is outlined as follows:

• Promoters, projects, and real estate agents are subject to RERA registration.
• RERA encompasses commercial, residential, and plotted developments.
• Builders planning to develop commercial or residential properties on land exceeding 500 square meters or with more than eight proposed apartments must obtain RERA registration.
• Agents engaged in selling and purchasing properties are obligated to acquire the RERA registration certificate.
• RERA registration is mandatory for real estate projects with a total development area exceeding 500 square meters or having more than eight apartments across all project phases.
• Real estate agents selling or transferring plots, apartments, or buildings within RERA-registered projects must obtain RERA registration.
• Individuals or entities involved in advertising, marketing, booking, selling, or inviting individuals to purchase plots, apartments, or buildings covered by the RERA Act must hold RERA registration.
• The RERA registration certificate remains valid throughout the state.
• The applicability of RERA extends to all parties involved in the transaction, and specific property types and their respective area considerations are included in the checklist.

Advantages of RERA Registration for Real Estate Agents

Securing RERA registration provides numerous benefits for real estate agents under the RERA Act. Mandatory for agents dealing with RERA-registered real estate projects, here are the advantages of RERA registration:

Legal Authorization

RERA registration grants legal authorization for advertising, marketing, booking, selling, offering for sale, or inviting individuals to purchase plots, apartments, or buildings covered under the RERA Act.

Enhanced Credibility

RERA registration enhances the credibility of real estate agents, instilling confidence and trust among prospective buyers and sellers. It signifies compliance with regulatory standards, highlighting the agent's professionalism.

Consumer Protection

RERA registration ensures consumer protection by fostering transparency and Accountability in real estate transactions. It establishes a framework for fair practices, curbing fraudulent activities, and providing avenues for addressing grievances.

Access to RERA Projects

Only registered agents can engage with real estate projects registered under RERA. RERA registration broadens agents' business opportunities by granting access to a wider range of projects.

Compliance with Regulations

RERA registration guarantees adherence to the regulations outlined in the Act. Registered agents remain updated on the latest rules and obligations, minimizing non-compliance risks and associated penalties.

Professional Recognition

RERA registration signifies professionalism and dedication to the real estate industry. It sets registered agents apart from their unregistered counterparts, bolstering their reputation and market standing.

RERA registration is crucial for real estate agents, fulfilling legal obligations and establishing trust, credibility, and professionalism in the industry.

Validity of RERA Registration

The registration of a real estate agent remains valid for five years unless revoked before the expiry date. During this period, registered agents must maintain proper books of accounts, records, and financial accounts following regulatory requirements, ensuring transparency and Accountability in their business operations.

Renewal of License

Under the provisions of the RERA Act, a real estate agent's registration can be renewed through the submission of an application, allowing them to extend their license beyond the initial registration period.

Documents Required for RERA Registration

The documents required for RERA registration depend on whether it is for a promoter or a real estate agent. Here is a list of the documents needed:

Documents Required for Promoter Registration:

• Identification and address proof of the promoter.
• Photographs
• PAN Number
• Email id
• Commencement Certificate along with the Sanction Plan
• Layout Plan
• Location details of the project
• Proposed course of action for the project's execution
• Availability of parking spaces within the real estate project
• Legal documentation confirming the promoter's ownership of the project's land
• Details of any previous project experience of the promoter, including project name, status, and instances of completion delays

Additional Documents Required for Promoters who are Companies:

• Certificate of Incorporation
• CIN / TAN number
• Memorandum of Association and Articles of Association.
• The audited balance sheet of the preceding three financial years, the audited report, and the director's report.
• Particulars of directors or any other authorized personnel.

Documents Required for Real Estate Agent Registration

• Identification and address proof of the applicant.
• Photographs
• Particulars of the real estate agent company, including its name, registered address, bylaws, Memorandum of Association (MOA), Articles of Association (AOA), and type of company.

Please note that these requirements are general, and specific state regulations may require additional RERA registration documents.

Procedure for Obtaining RERA Registration

The process to obtain RERA registration involves the following steps:

Filing the RERA Registration Form

The applicant must complete and submit the prescribed registration form to the Government of Tamil Nadu. This form should include all the necessary details and accompanying documents.

Submission of Required Documents

The applicant must submit the duly filled application form and the required documents. The applicable fees can be paid through a demand draft, a banker's cheque drawn on a scheduled bank, or online payment methods specified by the real estate regulatory authority.

Verification by the Authority

The authority will review the submitted application and determine whether to accept or reject it within 30 days of receiving the application. If there is no response within this timeframe, the authority will consider it an implicit acceptance.

Issuance of Registration Certificate

Upon acceptance of the application, the regulatory authority will issue a registration certificate to the promoter or the real estate agent. This certificate serves as a confirmation of their registration under RERA.

What Penalties Are Imposed by the RERA Act?

Under the RERA Act, the following penalties come into effect:

Penalties for Agent Defaults

If a real estate agent fails to adhere to any provision of the Act, they may be subject to a fine of Rs 10,000 per day, which can extend up to 5% of the total cost of the plot, apartment, or building.

Punishment for Unfair Trade Practices

If an agent engages in unfair trade practices, they may face imprisonment for up to 1 year.

Exemptions from RERA Registration

Specific projects are not obliged to be registered under the RERA Act. These include:

• Projects with Land Area and Apartment Limits: Projects with land areas not exceeding 500 square meters or apartments not surpassing eight in number.
• Projects Involving Renovation, Repair, or Re-development: Projects are limited explicitly to activities such as renovation, repair, or re-development, provided they do not encompass marketing, advertising, selling, or new allotment of any apartment, plot, or building.
• Projects with Completion Certificates: Projects for which the promoter has already obtained a completion certificate before the commencement of the RERA Act.
• Please be aware that these exemptions may vary from state to state.
• Individual states may have distinct rules and regulations governing projects that are exempted from RERA registration.

Streamline the RERA Registration Process with Dsolve

Dsolve can provide valuable assistance in obtaining RERA (Real Estate Regulatory Authority) registration in Tamil Nadu. With our expertise and knowledge of the regulatory requirements, Dsolve can guide real estate promoters and agents through the complex process of RERA registration.

Our services encompass filling out the necessary forms, compiling the required documents, and ensuring compliance with the Tamil Nadu RERA rules and regulations of the respective state's RERA authority. By entrusting Dsolve with the registration process, individuals and entities in the real estate sector can streamline the registration procedure, saving time and effort while ensuring compliance with the law.