RERA Compliance Guide: Key Steps for Promoters to Avoid Penalties and Ensure Smooth Project Management After RERA Registration of the Project
1. Login and Project Verification:
Log in to the RERA website using your credentials and verify the details of each project as per the RERA registration. In case of discrepancies, promptly notify the RERA authority.
2. Password Change:
Change the default password provided by RERA, which is ‘Welcome1’. Failure to do so may allow unauthorized access to your project details.
3. Registered Agreement:
It is mandatory to execute a registered agreement before collecting more than 10% of the unit cost from the customer. This agreement serves as a fundamental document and is essential for resolving future disputes.
4. Marketing Materials Compliance:
All promotional materials, including brochures, pamphlets, hoardings, and advertisements, must display the RERA registration number, website link, and contact details. Additionally, a QR code of the RERA certificate must be included. Non-compliance may attract penalties.
5. Area Measurement Standards:
The carpet area must be mentioned in square meters (sqm) in all agreements, documents, and marketing materials.
6. 70% Fund Deposit in RERA Account:
70% of the funds collected from the allottee must be deposited in a designated RERA bank account and utilized solely for project-related expenses until completion
7. Quarterly Returns Submission:
Maintain proper bookkeeping and submit quarterly returns between the 1st to 7th of every financial quarter. The standard fee is ₹2000, and late submission attracts a penalty ranging from ₹400 to ₹1000 based on project cost.
8. Consent for Project Alterations:
As per Section 14(2)(11) of the RERA Act, any changes in the approved layout, building structure, or unit area require the written consent of two-thirds of the allottees, followed by an application to the RERA authority.
9. Maintenance and Deposit Management:
Funds collected for maintenance and deposits must be deposited in a separate account and utilized solely for the intended purpose.
10. Bank Account Modification:
Any change in the promoter’s bank account must be updated with RERA and an online application must be submitted. The applicable fee is ₹5000.
11. Project Loan Update:
If a project loan is availed, it must be updated on the RERA portal through an encumbrance application, with a fee of ₹5000.
12. Project Completion Conditions:
A project is considered complete only upon obtaining the Building Use (BU) permission and handing over the common areas to the society. An affidavit in the prescribed format must be submitted to RERA.
13. Formation of Common Service Society:
It is mandatory to form a common service society within three months after selling 50% of the units.
14. Possession Handover within 7 Days:
After obtaining BU permission, possession must be handed over to the allottees within 7 days, provided full payment is received. The maximum time limit is three months.
15. Project Extension:
If the project cannot be completed within the stipulated timeframe, an extension application must be filed at least three months in advance. The extension fee is 50% of the registration fee.
16. Agent Registration:
Real estate agents must be registered with RERA, and promoters
