The purpose of RERA software in India is to bring transparency, accountability, and efficiency to the real estate sector. By digitizing and centralizing regulatory processes, the software ensures that real estate projects comply with statutory requirements, protecting the interests of homebuyers and promoting a fair and well-regulated real estate market. The real estate sector is a diverse and multifaceted industry that encompasses various activities related to the development, sale, purchase, and management of real property.
The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry. The Act establishes a Real Estate Regulatory Authority (RERA) in each state for regulation of the real estate sector and also acts as an adjudicating body for speedy dispute resolution.
Sub-section (1) of Section 3 of the Act makes it mandatory for all real estate projects to register with RERA for launching a project to provide greater transparency in project marketing and execution. For ongoing projects which have not received a completion certificate on the date of commencement of the Act, will have to seek registrations within 3 months.
Each State RERA must either approve or reject the application for registration within 30 days from the date of application submitted by the promoter. Upon successful registration, the promoter of the real estate project will be provided with a registration number, a login ID, and a password to fill up the essential details on the website of the State RERA.
If the promoter fails to register, he shall be liable to a penalty that may extend up to a penalty of 10% of the estimated project cost. Furthermore, if he does not comply with the orders, directions or decisions issued by the State Rera, he shall be punishable with imprisonment which may extend up to three years or with a fine which may extend up to a further 10% of the estimated cost of the project.
Real estate agents who facilitate the selling or purchase of properties must take prior registration. Such agents will be issued a single registration number for each State or Union Territory, which must be quoted by the agent in every sale facilitated by him. If a real estate agent fails to register or contravenes section 9 (registration of real estate agent) and section 10 (Functions and duties of a real estate agent), he shall be liable to a penalty of ₹10,000 payable every day during which such default continues. This penalty may cumulatively extend up to 5% of the cost of the plot, apartment or building, as the case may be, of the real estate project.