WHAT IS RERA ACCOUNT?
What is RERA?
The full form of RERA is Real Estate Regulatory Authority. The RERA Act was passed to increase transparency and eliminate problems arising amidst the sale of plots, flats or real estate projects. RERA is also responsible for speedy dispute redressal and establishing Appellate Tribunals to hear appeals.
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Real Estate Regulatory Authority (RERA)
As per Real Estate Regulatory Authority (RERA) act, every Promoter needs to open a separate bank account called “Designated Bank Account” for getting himself registered under RERA. Out of all the money received from sale proceeds, promoter needs to deposit 70% of such amount in designated bank a/c. Balance amount of 30% can be retained by the Promoter to carry out administration cost. To withdraw 70% amount, promoter needs to submit CA certificate in Form 3.
Three Bank accounts will be opened for each specific project as under:
RERA Receivable Account; Promoter’s Normal Current account; RERA Designated Account.
What is RERA accounting?
RERA Receivable account and RERA designated account will be closed after completion of the project and after obtaining the necessary permission from the related State RERA Department.
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Type of Account : Current Account to meet the requirements of Realtors who are looking for a product to meet the provisions of RERA Act 2016.
Purpose : Realtor’s Current Account for the Purpose of RERA Act 2016.(Specifically designed for depositing the minimum 70% of Realtor’s Collections from Investors and Buyers).
WHAT IS RERA ACCOUNT?
Style of Account : Account 1: Realtor’s Current Account for receipt of 100% Collections [Auto transfer to Account 2 and Account 3 in the ratio of 70:30 at end of day (eod)]
Account 2: Realtor’s Current Account for depositing minimum 70 % of Collections ( funds to be transferred from Account 1 ). This account will be registered with RERA Authority
Account 3: Realtor’s Current Account for Day to Day operations for receiving 30%of Collections(funds to be transferred from Account 1). However, Realtors may decide for transfer of 30% of Collections to their other Operating CC/OD account instead of Current Account 3.
Eligibility
Realtors of Residential and Commercial Real Estates registered/ to be registered with Authority of respective State/Union Territory under RERA Act 2016.
WHAT IS RERA ACCOUNT?
Benefits of RERA Bank Account?
• Easy transfer of funds from project collection account to RERA and Utilization Accounts
• Customized account to deal with different mechanisms with or without project loan
• Dedicated RERA team to facilitate smooth operations
Eligibility to open a RERA Account?
To open a RERA Account, an applicant needs to be engaged in one of the following businesses:
• Residential projects
• Commercial infrastructure projects, including godowns, shops, offices, etc.
• Ongoing projects for which the completion certificate is still pending
• Projects entailing the development of different phases, with each phase requiring a separate registration
• Development of plots
• Projects with a space of 500 square meters or more, or consisting of at least eight units
Exemptions from RERA?
• Projects under development having a built-up space of less than 500 square meters
• Number of units that do not exceed eight phases in all
• Repairs and renovations of a project, provided this does not entail advertising and selling of apartments, commercial spaces, buildings, or plots
• Instances where a completion certificate has been obtained before notification
• Resale property
Documents required to open a RERA Account?
The documents needed for opening a RERA Account with us are:
• Duly filled account opening form
• PAN of entity (In sole proprietorships, same is required of the proprietor)
• KYC documents of the entity as per customer type
• Address proof in the name of the entity if different from ID proof
• Official valid documents of authorized signatories & beneficial owners*
• Beneficial ownership* declaration
• Copies of documents submitted by the builder to RERA at the time of registration, including RERA registration document
• RERA agreement
• Project details
Not applicable for individuals and sole proprietorships
