HIRA and RERA Registration - Overview

HIRA Act was introduced and enacted for regulating the sale of properties in the real-estate sector and housing sector with the mission of bringing efficiency and transparency. WBHIRA online portal was created to register real estate projects, real estate agents and complaints relating to real estate in the State of West Bengal. In this article, we shall discuss the procedure for obtaining West Bengal HIRA registration and RERA Registration along with their various aspects.

In accordance with section 3 of the West Bengal Housing Industry Act, 2017 registration of Real Estate Project with the Housing Industry Regulatory Authority is mandatory in the real estate sector. According to RERA, each state and union territory will have its own administration body and set of rules to govern the operations of real-estate transactions.

The registration of Real Estate Project with the Housing Industry Regulatory Authority is deemed obligatory under section 3 of the West Bengal Housing Industry Act. The authority aims at promoting growth and development for a competing real estate sector. Following are the objectives of the Authority:

• To ensure the requirements of disclosure norms of Real Estate Projects by Promoters
• To ensure the sale of the plot, apartment or building, as the case may be, or sale of real estate project with transparency
• Registration of Real Estate Plans with Real Estate Regulatory body
• Registration of Real Estate Agents under Real Estate Regulatory system
• Enable quick Grievances Redressal concerning registered real estate projects
• Provide support and guidance to appropriate Government in matters relating to the development and promotion of the real estate industry

Step 1: Visit the West Bengal Housing Industry Regulatory Authority website.

Step 2: Click on the "Online Registration Tab" and then select online Registration.

Step 3: You will be provided three options to choose from “Online registration for Real Estate Project/Real Estate Agent/Complaint”. Click on the Real estate project.

Step 4: You will be redirected to a page where you need to enter the user ID and password, and then click on the "Continue" button to register.

Step 5: If you don’t have a user ID, you need to sign up for new account and fill out the registration as required and save the same.

RERA stands for Real Estate Regulatory Authority which was established under the Real Estate Regulation & Development Act. This Act was introduced in the year 2016 to regulate the problems arising in the real estate sector. The Act is implemented at the State level, and the governing authorities are responsible for the following activities:

• Registration and other related approvals for the registration under RERA of commercial properties and residential properties.
• Regulating the sale and purchase transactions of real estate properties, ensuring transparency in the same.

RERA registration aims at providing transparency in these contracts and benefits all the parties involved in the transaction. It also establishes accountability by reducing the chances of delay in real estate contracts. The main aim of the registration is to protect the interest of buyers of real estate and simultaneously increase the investment in the real estate market.

RERA has a number of benefits for the buyers, the promoter, and the real estate agent. These comprises of:

Calibration of carpet area: Before RERA, the manner by which a builder calculated the price of a project wasn’t defined or regulated under any law. With the emergence of RERA, a standard formula is now made available that is used to calculate carpet area. This way, the promoters cannot fraudulently increase carpet areas to increase prices.

Minimizing the risk of insolvency of the builder: Most promoters and developers often have multiple projects being developed at the same time. Earlier, developers were allowed to move funds raised from one project to another. However, this is not possible with RERA since 70% of the funds raised need to be deposited in a separate bank account. These amounts can be withdrawn only after certification by an engineer, a chartered accountant, and an architect.

Pre-payment: As per the rules, a builder is not eligible to accept more than 10% of the cost of the project from the buyer as advance or application fees. This saves the buyer from remitting huge sum of money money towards a single transaction.

Rights to the buyer in case of any structural damage: Within 5 years of possession, if there is any structural defects or damage in terms of quality and built, the builder has to mend these damages within 30 days at no cost to the buyer.

Interest applied in case of default: Before the RERA, if the promoter delayed the possession of the property, the interest paid to the buyer was lesser than in the case if the buyer delayed payments to the promoter. This has changed with RERA as both parties have to pay the same amount of interest.

Buyer's rights for false promises: If there is a mismatch in terms of what was promised by the promoter and what has been delivered, the buyer is eligible for a full refund of the amount that was paid as advance. In some cases, the builder may have to provide interest on the amount as well.

Buyer's Right to information: The buyer has the right to know about all the information about the project. This includes plans related to layout, execution, and completion status.

Redressal of grievances: If the buyer, the promoter, or the agent has any complaints with respect to the project, they can register a complaint with RERA. If they aren’t pleased with RERA’s decision, a complaint can also be filed with the Appellate Tribunal. This Act was introduced in the year 2016 to monitor and address the problems existing in the real estate sector.

According to the RERA Act, the RERA committees have been formed across India to promote uniformity and transparency and to regulate the real estate industry in the country. With the emergence of RERA Act, every builder, promkter, developer is required to inform homebuyers of the progress of construction, offer keys to home buyers’ property within the mentioned date. They are also to abide by the rules prescribed by tge RERA Act and ensure accountability.

RERA registration is a state-wise registration process and hence differs from state to state. The process is online and can be applied using the official website of the state in which the registration can be applied for. The promoters and the real estate agents have to submit the relevant requisite documents along with the application for registration to the Regulating Authority of their respective states.

A. For Promoters

• Prepare a list and collect all the documents required for registration.
• Acquire the bank account number opened as per Section 4 (2) (I) (D) the Act.
• Fill up and submit Form A for registration.
• Fill up and submit Form B which is a declaration made by the promoter in accordance with Section 4 of RERA.
• Fill in and submit Form G which is a draft agreement of allotment or sale of the project.
• Submit an affidavit mentioning that the details entered in Form G are not contrary to the rules set out by RERA.
• Submit an affidavit stating that no booking amount has been accepted from prospective buyers and is in accordance with Section 3 of the Act.
• Pay the fees required for registration. The fee varies from state to state.
• Send a duly-signed hard copy of all of these documents by registered post to the relevant RERA authority.
• Lastly fill up and submit Form C. With this you can finally obtain the registration certificate.

B. For Real Estate Agents

• Complete the application form and submit it along with the required documents and the required fee to RERA authority.
• A registration number will be allotted to you. This number needs to be mentioned for every property transaction.
• You are required to maintain books of accounts, documents, and records related to all transactions on monthly basis.
• All information and documents regarding any project must be share with the prospective buyers.
• You could be suspended and disqualified if you misrepresent yourself or commit any fraud during the registration process.

Penalties for developers or builders under RERA Act are as follows:

• 10% of the project price for non-registration.
• 3 years of imprisonment or 10% of the project cost for not following the orders under RERA.
• 5% of the project cost for misleading and providing false information and 5% of project price for other contraventions.
• Penalty up to 5% of project cost for order contravention on a daily basis.
• 5% of project cost or 3 years of imprisonment for not following orders of the Appellate Tribunal.

Penalties for brokers under RERA Act are as follows:

• In case of any involvement in unfair trade practices, a broker can get an imprisonment penalty of 1 year.
• Up to 5 % of the property cost for non-compliance with the rules of REM.
• Up to 10% of the cost, imprisonment of up to 1 year or both for non-compliance with the provisions of the Appellate Tribunal.