The introduction of RERA in the country made it mandatory for each state to set up an authority to look after the real estate activities of their region. Following this Himachal Pradesh launched its own set of RERA (Real Estate Regulatory Authority) that would regulate all matters pertaining to real estate dealings and transactions.
In the last few years, Himachal Pradesh has witnessed several new investments, with the remarkable expansion of the real estate sector helping the state transform into a modern one.
Infrastructure improvement and the Pradhan Mantri Awas Yojna housing scheme, initiated by the government, have boosted the real estate industry in the state.
The real estate business needed proper regulations, and as a result, the emergence of RERA gave way to many upcoming projects in the state.
RERA Himachal Pradesh
RERA Act came into force on September 28, 2017, in Himachal Pradesh, while the RERA rules were notified in February 2017. The state appointed the director of town and country planning as the designated officer.
RERA Himachal Pradesh is applicable to both ongoing and upcoming projects in the state. The infusion of the RERA in the state brought transparency and efficiency to the real estate sector. The Act functions with the main objective to protect homebuyers from fraudulent and malpractices by developers or agents.
Provisions under RERA Himachal Pradesh
As per the RERA rules, every real estate project, developer, and agent must get registered with HP RERA. Additionally, the rule says that real estate developers must share every project detail with homebuyers or investors. This will ensure the interests of homebuyers are protected as the government stays in sync with customers and developers.
As per the RERA Act, builders and agents are not allowed to advertise or sell any project without registering it under RERA. In the event of a violation of the provisions, strict actions would be taken against the promoter, and he would be liable for a penalty.
Developers and promoters are not allowed to receive any advance or deposit without entering into an agreement.
The RERA Act is in charge of establishing a quick mechanism to provide timely resolution to homebuyer complaints.
Benefits of RERA implementation
Here are the benefits of the real estate regulatory authority in general:
Developers are required to make all pertinent disclosures and offer quarterly updates regarding the projects that have been registered.
Developers are permitted to charge based on carpet area rather than super built-up area.
70 percent of the collected amount must be kept in a separate bank account that is to be used for only development and construction purposes. This reduces the chances of a delay in the completion of the project.
In the event of a delay, the developer is liable to pay an interest rate of 2% (that is above the marginal cost of SBI’s lending rate).
The builder is responsible for a total of 5 years in case of any defect in the construction and provides a resolution within 120 days from the date of the complaint.
Project registration procedure
Below is a stepwise guide to registering the project under RERA.
- First visit to the official website of the HP RERA at hprera.nic.in
- Navigate to the”‘Registration” option and select “Promoter”
- Now, enter the required details along with the necessary documents, click on “save” to create the profile, and move to the project registration.
- Choose the “Registration” option from the homepage and click on “Real Estate Project” and select “Apply New Project” as per the requirement
- You will be redirected to the new webpage where you need to log in to your promoter’s account
- There are seven pages that need to be filled
Promoter’s details– All personal details and other financial details
Project details– Key information such as the project’s size, ownership, and location must be entered
Sanctioned project– The sanctioned project details include the type of project, sanctioned plan, stability certificate of the structure, etc.
Project professionals– You must enter the names and credentials of the professionals involved in the project
Civic facilities– Depending on the project’s requirements, the appropriate facilities must be chosen
Project Declaration– An affidavit or declaration must be used to verify the pertinent documents in Form B. This page is crucial because before the form is submitted, all of the documents must be verified.
Project fee– The project fee is based on the project’s type, size, and scope. The payment method is online.
Agent registration process
The registration process is simpler than project registration as it does not require the submission of many documents.
Here are the steps that you need to follow to register as an agent.
- Visit the official website of the HP RERA at hprera.nic.in
- Click on “Registration” and then navigate to the “Agent” option
- Enter the basic details to log in and continue with the registration form and fill out the registration and fee tabs
- After filling in all the required boxes verify the information and click on the “Final Submit” option to receive your real estate certificate of registration.
Documents Required for registration
Here is the list of necessary documents that are required to be uploaded to the official portal of the HP RRERA during the registration process.
Financial Documents
- The sale agreement, Conveyance deed, Allotment letter, possession letter
- Details and certificates of Professionals involved in the project
- Civic facilities
- Structural stability certificate
- Sanctioned project plan and location plan
- Himachali Certificate of Agriculturist
Personal Details
- Bank details
- Aadhar number and PAN
- Annual financial report
- Passport size photos
- Ownership document
- Revenue documents
Documents Required
To be registered under the RERA, each RERA agent must submit the following documents.
- Aadhar number and PAN
- Copy of resolution
- Address proof (business)
- Experience certificate
- Registration details (UT/State)
