The government has enacted the Real Estate (Regulation and Development) Act 2016, and the provisions of the RERA Act have come into force with effect from May 01, 2017. Under this Act, the State Government is required to establish the Real Estate Regulatory Authority for regulation and for promotion of the real estate sector. All Real Estate Agents must be registered under this Act. The Punjab government notified the State about RERA rules in June 2017, and Punjab RERA was officially put in place.
Overview: Enactment of Punjab RERA Rules
Some sections of the RERA Act were enforced with effect from May 01, 2016, and the rest of the RERA Act came into force from May 01, 2017. Under this Act, all the States have to appoint a Real Estate Regulatory Authority that carries out the purposes of the Act. The Punjab Government has notified the Real Estate (Regulation and Development) Rules, 2017, on June 08, 2017. The Punjab RERA was established on date August 10, 2017, upon the joining of Chairperson with two full-time Members.
Relief for Promoter in the light of COVID-19 pandemic under Punjab RERA
The Punjab RERA has considered the situation of Covid-19 pandemic, and for the same purpose the following relief is granted by the Authority:
- For the registered projects whose completion date was on or before March 15, 2020, the period of validity of registration of such projects will be extended for further six months from the original date.
- For all registered projects whose registration has lapsed prior to March 15, 2020, and also the application for the extension has not yet been made, there the period of validity for registration for such projects is extended by six months. Provided the application can be made for extension after paying late fees. However, the late fee from March 15, 2020- June 30, 2020, has to be excluded.
- The time limit for statutory compliances in relation to real estate projects and real estate agents must be in accordance with RERA Act, which had become due to date, is now extended up to June 30, 2020.
Purposes behind the promulgation of the Punjab RERA Act
- To regulate and to promote the Real Estate sector.
- To facilitate the growth of a healthy, transparent, efficient, and competitive real estate sector.
- Sale of apartments, plots, etc. in a transparent and efficient manner
- To protect an interest of consumers in the real estate sector.
- To provide an adjudicating mechanism for the speedy dispute redressed.
- To publish and maintain the website of records for public viewing for real estate projects and agents that have been registered.
- To provide an online facility of registration of real estate projects, agents, as well as the filling of complaints by the aggrieved persons.
- The Punjab RERA strives to fulfill the objectives in full measure and will work to promote the balanced development of the sector, keeping interests of all the stakeholders in mind.
Read our article:RERA Complaint or Consumer forum (NCDRC): Which is better?
Importance of Punjab RERA for Real estate Agents, Promoter and Citizens
No real estate agent will facilitate or act on behalf of any person regarding the sale or purchase of any apartment, plot, or building, in a real estate project or any part of it, without obtaining RERA registration under the Act. Punjab RERA has primary objectives to help in promoting transparency within the real estate sector.
Real Estate Agents
Under the RERA Act 2016, all Real Estate Agents must have to register with Punjab RERA before having any sale. Promoters, while applying for registration to Punjab RERA, must provide the names of registered agents who would be facilitating the sale of plot and apartments in the said project. The registration must be valid for a period of five years and can be renewed thereafter.
The key facilities are being provided to real estate agents are as follows:
Promoters under Punjab RERA
Under the RERA Act 2016, Promoters must have to register all commercial and residential real estate projects with Punjab RERA. No promoter will advertise, sell, book, or offer for sale or invite persons to purchase in any manner any plot, apartment, or building, in any real estate project, or part of it without having registration the real estate project with Punjab RERA.
The Promoter of ongoing real estate projects, in which all buildings as per sanctioned plan have not received occupation or Completion Certificate, shall also be required to be registered for such phase of the project. They shall also need to provide quarterly updates to Authority from time to time.
The key facilities being provided to promoters are as follows:
Citizens under Punjab RERA
Any aggrieved person has right to file a complaint with the Authority or with the adjudicating officer, with respect to any registered real estate project, regarding any violation or contravention with provisions of the Act or the rules and regulations made thereunder.
Under the RERA Act 2016, Citizens must be provided with the following services:
Functions of Punjab RERA
It has a list of functions that provide for better transparency between homebuyers and developers or real estate agents. Here are the functions that Punjab RERA performs.
- As specified by overarching RERA rules, Punjab RERA and its policies are hosted on the official RERA website of State https://rera.punjab.gov.in.
- To promote the real estate growth within the State, the Punjab RERA has created a strong, efficient, transparent, and competitive environment.
- RERA Act of Punjab oversees the sale of plots and apartments in a fair manner.
- Punjab RERA protects an interest of buyers in the real estate sector. It allows the buyers to lodge a complaint or query on the RERA portal and receive a solution.
- Under the Punjab RERA Act, real estate agents and other stakeholders have to compulsory register their projects so that RERA can display records pertaining to stakeholders and projects on its official website.
Rules and Regulations of Punjab RERA Act
Punjab RERA’s goal is to stop malpractices and project delays to ensure this holds real estate agents and builders to the highest standards. The most important RERA rules that Punjab RERA have are as follows:
- As a homebuyer, one only requires to pay the carpet area cost for the property they are buying. Builders cannot charge for the super built-up area, such as the balcony, stairs, lift, and lobby.
- The other way in which RERA impacts real estate agents and homebuyers as it requires property developers to inform buyers about updates during the construction process. In case of construction of project or handover delays, as per RERA rules, the developer has to pay 2% interest.
- The property developer’s duty does not end, as one can report defects and problems and have the developer rectify them within five years from the date of handover.
- In case of any dispute, developers have to attend to and resolve the concerns within 120 days from the date when a complaint was filed.
- As a homebuyer, two-thirds of allottees can express consent for alterations for a sanctioned plan of a developer or builder regarding making changes to the property.
- The Punjab RERA Act prohibits developers from taking anything more than 10% as advance from a homebuyer.
Compliances under Punjab RERA
As a homebuyer, one can create a virtual account to log into the official Punjab RERA website, whereas as a real estate agent, developer or agency, one has to register with RERA by submitting the list of documents and by paying fees.
Registration Fees of Punjab RERA for real estate agents
The real estate agent must pay a registration fee at the time of application for registration through online at the time of online registration, in the case of the applicant being an individual a sum of Rs.5,000/- and in the case of the applicant being anyone other than the individual a sum of Rs.25,000/-.
The validity of Registration number
Real estate agents will have a certificate number, which shall be valid for a period of five years.
Renewal of RERA Registration
RERA certificate for real estate agents can be renewed after five years. The application fee for a renewal sum of Rs 3,000 in the case of an individual and in the case of other than an individual is Rs 12,000. Renewal granted by RERA must be valid for five years.
This Registration number must be valid for the entire State of Punjab. The real estate agent has to maintain and preserve his books of records, accounts, and documents in accordance with the provisions of the Income Tax Act, 1961.
Registration for Punjab RERA
RERA forms are available on the RERA website, and one can register their project, as well as create a builder or developer profile by using the platform.
- To register projects, one must visit the official RERA Punjab website and select ‘Project Registration.’
- Thereafter, they will be redirected to a page where they can create an account. In accordance to do so, one must first confirm the status as a stakeholder. Now pick one of these options: Real estate agent, Promoter, or complainant.
- Next, the required fields must be filled and enter the CAPTCHA code.
- Click on to ‘Create User’
In a similar vein, one can register themselves as a RERA registered promoter, real estate agent, and developer. In accordance to do so, click on to the ‘Agent Registration’ tab on the official Punjab RERA website. Thereafter, select the user type and fill in other details. Apart from this, note that as a home buyer, one has to fill a form in order to register a complaint and pay a fee of Rs.1,000.
Documents required for RERA Registration
- Passport size photograph of agents/ directors /partners
- Copy of Aadhar card of agents /directors/partners
- PAN Card of a real estate agent in case of individual or PAN card of Firm
- Authenticated copy of the address proof of the place of business
- Particulars of the Registration including the bye-laws, memorandum of association, articles of association, etc
- Income tax returns for the last three years.
The Authority has been designed by keeping the above factors in mind that reflects the values of the basic Authority’s functioning of Punjab RERA. It portrays the Authority’s commitment to creating a caring, nurturing environment for the promotion of the real estate sector. The design and choice of the emblem embody a spirit that underpins the Authority’s work – representing tranquillity, prosperity, and transparency.
Read our article:Comprehensive Guide on RERA Registration for Promoters