When buying a new home, the buyers often inquire whether the property is registered under RERA. A RERA-registered property also finds favor amongst the home loan lenders.
So, what is RERA?
RERA stands for Real Estate Regulation Authority. RERA in Delhi is governed under the Real Estate (Regulation and Development) Act, 2016, and its rules. It has been formed to regulate and promote the development of the real estate sector in the National Capital Territory of Delhi.
The RERA website in Delhi can be accessed at https://rera.delhi.gov.in/.
Registration under RERA
Developers and agents can register online on the RERA portal by filling out the prescribed forms. The registration is granted to the projects/agents meeting the specified requirements, viz.
– Provision of all details of the entity structure and uploading the specified documents
– Provision of financial statements
– Provision of all details of the project – clear land title, approvals, insurance, plan, layout, etc.
– Affidavit by the promoters
– Payment of the prescribed fees, etc.
The registration is valid for the period mentioned in the registration certificate. It can be extended by an application made by the developer or the agent. For instance, the registration for a real estate project is generally valid until the completion of the project. A real estate project registration is valid for a specified number of years.
The RERA website mentioned above provides details of projects registered under RERA and those that have been rejected. You can even download the registration certificate of the relevant project and check its validity.
If you wish to check whether the agent is registered under RERA, you can check the website. An agent’s name appearing in the suspected or rejected agents’ list acts as a warning to the home buyer.
How is RERA important for a home buyer?
Often, developers take money from buyers and do not deliver the property’s possession. They may also take a very long time before the agreed possession date. Hence, RERA has been introduced to protect buyer interest. It requires developers and agents to register, submit periodic progress reports, and utilize funds from the buyers in the prescribed manner.
All new properties must be registered under RERA. Hence, if you are purchasing an under-construction property not registered under RERA, you must immediately start looking for another property.
You can check the website to find out whether the concerned property is registered under RERA or not. If you are transacting through an agent, you can even check whether the agent is RERA registered. Transacting with a RERA-registered developer or agent provides an assurance that you are transacting with a genuine party.
When a property is a RERA registered property, the lender (bank or financial institution) is assured of the developer’s credibility and project completion. In simple words, the risk associated with lending to a RERA-registered property buyer is lower than lending to a buyer of a property which is not RERA registered
While taking a home loan, you will generally select the lender that offers the loan at the best possible home loan interest rate. You will also use the home loan EMI calculator to calculate the expected EMI over the loan tenure. However, it is important to check whether your dream home is a project registered under RERA. The developers usually declare that the project is RERA-registered. If the developer does not, you can always check the website.