RERA Filings
Need to file under RERA? Check out the guide below to learn how we can support you in preparing and filing RERA returns, ensuring compliance with real estate regulations.
The real estate industry thrives on the intricate relationship between builders, buyers, and the intermediaries who facilitate transactions - real estate agents. These agents are key to bridging the gap between developers and homebuyers. With the introduction of the Real Estate Regulatory Authority (RERA), this dynamic is set to undergo significant regulation, ensuring greater transparency and accountability in all real estate transactions.
Under the Real Estate (Regulation & Development) Act, 2016, all real estate agents are now required to be mandatorily registered with state-level regulations. These agents play a key role in bridging the gap between developers and homebuyers.
Moreover, agents who falsely represent project details to buyers will face hefty penalties - up to Rs 10,000 per day, with a cap of 5% of the total project cost. Additionally, real estate agents are now required to maintain detailed books of accounts for each project they are involved in, ensuring that they remain accountable for their dealings.
What is RERA?
RERA, or the Real Estate Regulatory Authority, was established under the Real Estate (Regulation & Development) Act, 2016 to address long-standing issues faced in the real estate sector. Governed at the state level, RERA covers a series of regulations aimed at protecting homebuyers and creating a more accountable environment for real estate investments.
The key functions of RERA include:
- Registering and approving commercial and residential real estate projects.
- Overseeing the sale and purchase of real estate properties.
- Monitoring the compliance of builders and agents with state regulations.
The primary objective of RERA registration is to safeguard the interests of buyers while encouraging investment in real estate. By mandating transparency in project timelines, legal clearances, and financial disclosures, RERA ensures that all parties involved in real estate transactions are better protected and informed.
Our Services
At Benchmark, we provide detailed RERA filing services to ensure full compliance with regulatory requirements. Our expert team handles all the complex compliance needs, making use of technology-driven solutions, and offering strategic advisory services. Below are our key service offerings under RERA filing:
- We assist in project registration, by making sure that you follow the state-specific RERA mandates
- From documentation to submission of required forms, we provide you with end-to-end support for your RERA filing.
- We help you create and manage RERA-mandated escrow accounts with structured fund utilisation planning.
- We help you draft agreements, including Builder-Buyer Agreements and Sale Deeds as per RERA norms
- We help you with filing mandatory Quarterly Progress Reports (QPR) and timely submission of Annual Reports (Form 5)
- Provides advisory services on RERA provisions, project structuring, and dispute resolution strategies
- Handling amendments, modifications, and renewals related to RERA registrations
- Audit and review of compliance frameworks to mitigate regulatory risks
- Conducting due diligence and risk assessment for RERA-registered projects
- Strategic consulting on advertising and marketing compliance under RERA regulations
- Managing developer-agent registrations, including documentation and compliance filings
Why choose Benchmark for RERA filing
At Benchmark, we offer a dedicated team of professionals who specialise in understanding the complexities of RERA compliance. Our end-to-end service ensures that all aspects of your RERA filing are handled with precision and expertise. From project registration to quarterly updates and annual reports, our team is committed to delivering timely, accurate filings that align with the latest regulations. By partnering with us, you can be assured that your real estate transactions will comply fully with RERA standards, minimising risk and maximising operational efficiency.
We pride ourselves on providing complete support throughout the entire compliance process. Whether it’s preparing legal documentation, handling complaints, or offering strategic advisory services, Benchmark is with you at every step. With our experienced team managing your RERA filings, you can focus on growing your real estate business with the confidence that your compliance needs are fully covered.
Features of RERA filing services
By bringing transparency, accountability, and professionalism to every real estate project, the Real Estate (Regulation and Development) Act (RERA) streamlines the real estate sector. RERA aims to protect homebuyers and promote ethical practices in the industry by making compliance with regulatory requirements mandatory. Here are the key features of the RERA filing process:
| Feature | Description |
|---|---|
| Project Registration | Builders and developers must register their real estate projects with the respective state RERA authority before advertising or selling the project. This includes submitting forms and legal documents, such as land ownership proof, project plans, and NOCs from relevant authorities. |
| Agent Registration | Real estate agents must also register with RERA to engage in any transaction. This registration comes with a unique identification number, valid for five years, and must be mentioned in every transaction. |
| Quarterly Progress Reporting (QPR) | Developers must provide quarterly updates on the progress of the registered projects, covering areas such as construction progress, sales status, and revisions to building plans. This ensures buyers are kept informed about the project status. |
| Annual Financial Report | Developers are required to submit annual reports, including a detailed account of the designated bank balance and project expenditure (Form 5). This promotes financial transparency and accountability in managing project funds. |
| Complaint Handling | RERA provides a platform for resolving disputes between buyers and developers. Filing complaints and addressing grievances in a timely manner is critical to maintaining good relations and avoiding legal consequences. |
| Transparency in Advertising | Builders and developers are not allowed to advertise any project until it is registered under RERA. Any misleading or false claims can lead to penalties and legal actions, ensuring truth in advertising. |
Documents required for RERA filing
To ensure transparency and accountability in real estate transactions, RERA mandates that developers, agents, and landowners submit specific documents during the registration process. These documents are important for verifying the legitimacy of the project and ensuring compliance with state regulations. Below is a list of essential documents required for RERA registration:
- Proof of land ownership or development rights
- Detailed project plan, approved by the competent authority
- Encumbrance certificate (if applicable)
- NOC (No Objection Certificate) from various authorities such as the fire department, environment department, and airport authority
- Commencement certificate issued by the relevant authority
- Detailed construction timeline and progress reports
- Audited financial statements of the developer
- Legal title deed and supporting documents for land
- The project’s estimated cost and source of funding
- Approved layout plan and building plan
- All agreements between the developer and buyers
- Details of real estate agents and contractors associated with the project
- Architect’s and engineer’s certificates
- Bank account details for the designated RERA project account
- Form A for project registration
- Builder’s PAN card and Aadhaar card copies
- List of ongoing litigation, if any
These documents must be submitted in their prescribed formats to the state RERA authority for a successful registration process.
Process of RERA filing
The RERA filing process is structured to ensure that every real estate project complies with the regulatory framework, promoting transparency and protecting the interests of all stakeholders. Below is a step-by-step guide to the process of RERA filing:
Step 1: Project Details Preparation
Developers must first gather all project-related documents, including the approved project plan, land ownership proof, and necessary NOCs (No Objection Certificates) from relevant authorities like the fire department, environmental bodies, and the airport authority.
Step 2: Online Registration Application (Form A)
Submit Form A for project registration through the respective state’s RERA portal. This form includes critical details about the project, such as the estimated project cost, timeline, and project layout plans. Supporting documents, including legal clearances and financial disclosures, must be attached.
Step 3: Escrow Account Opening
Developers are required to open a separate escrow account in a scheduled bank for each project, as mandated by RERA. Seventy percent of the funds collected from buyers must be deposited in this account, and the withdrawal of funds must be directly linked to the project’s progress, supported by an architect’s and engineer’s certificates.
Step 4: Submission of Financial and Legal Documents
Developers must submit their audited financial statements, along with the project’s estimated cost and funding sources.
Step 5: Approval of Project Registration
Once the application and documents are submitted, the RERA authority reviews the details to ensure they meet the legal and technical requirements.
Step 6: Issuance of RERA Registration Number
Upon successful approval, the developer is issued a unique RERA registration number for the project. This number must be quoted in all advertisements and communications related to the project.
Step 7: Quarterly Progress Updates (Form QPR)
Developers must file Quarterly Progress Reports (QPR), including updates on construction progress, sales status, and project timeline revisions.
Step 8: Annual Report Submission (Form 5)
Developers are required to submit Form 5, which includes detailed financial disclosures such as the bank balance of the project’s escrow account, fund utilisation details, and an audit report prepared by a Chartered Accountant.
Why compliance is crucial
For real estate developers, agents, and stakeholders, compliance with RERA regulations is not just a legal requirement, but a strategic necessity. These regulations ensure smooth operation of projects, protect against financial and legal penalties, and build trust with investors and buyers.
Failure to comply with RERA regulations can result in significant consequences, including hefty penalties, interest charges, and even legal action such as imprisonment. Non-compliance also leads to reputational damage, affecting trust among homebuyers and damaging your business’s credibility in the market.
Ultimately, complying with RERA not only mitigates risk but also enhances the credibility of developers and agents. It helps build long-term relationships with buyers, reduces project delays, and ensures that projects are completed within the promised timelines. This compliance builds a foundation of trust and transparency, key components for success in the real estate industry.
Non-Compliance Issues to Avoid
Compliance with RERA regulations is important for your business to maintain its transparency, protect stakeholders, and avoid legal consequences. And if you fail to follow these regulations can lead to financial penalties, reputational damage, and legal repercussions. Here are some key non-compliance issues that developers and real estate agents must avoid:
- Non-disclosure of project details and legal clearances
- Delay in quarterly progress reporting
- Misrepresentation of project information to buyers
- Non-maintenance of financial records and project accounts
- Failure to deposit funds in a required escrow account
- Unauthorised advertisements before RERA registration
- Non-submission of annual financial reports
- Violation of project timeline commitments
- Failure to obtain necessary No Objection Certificates (NOCs)
- Lack of transparency in financial transactions
- Engaging unregistered real estate agents
- Non-compliance with grievance redressal mechanisms
- Withholding important project updates from buyers
- Failure to submit Form 5 annual financial disclosures
- Ignoring directives issued by the state RERA authority
Conclusion
In today's highly regulated real estate market, compliance with RERA regulations is not just a legal necessity but a strategic advantage. By ensuring transparency, accountability, and timely project completion, RERA helps developers build trust with buyers and investors, ultimately leading to sustained growth and success.
At Benchmark, we simplify the complexities of RERA filing for you, offering expert support at every stage. From project registration to quarterly updates, our team ensures that all legal and financial aspects are handled with precision and care.
Get in Touch
Ready to ensure your next real estate project is fully compliant with RERA? Contact Benchmark today for expert RERA filing services that will protect your interests, streamline compliance, and keep your business on track.
FAQs
What is the validity of a RERA registration number?
A RERA registration number is typically valid for the period specified during the project registration, which often aligns with the completion date of the project.
Is RERA registration required for renovation or redevelopment projects?
RERA registration is not required for renovation or redevelopment projects if they do not involve marketing, advertising, or selling of new apartments.
What are the penalties for providing false information in RERA filings?
If a developer or agent is found to have provided false information during RERA filings, the penalties can include fines up to 5% of the estimated project cost, along with other legal actions, which could include imprisonment for severe breaches.
Can a RERA registration be revoked or cancelled?
Yes, RERA authorities have the right to revoke or cancel a registration if there is any violation of the act, misrepresentation of facts, or failure to adhere to compliance norms.
What types of projects are exempt from RERA registration?
Projects covering less than 500 square metres or involving fewer than 8 apartments are exempt from RERA registration.