RERA Bihar: Revolutionizing Real Estate Regulation in the State

RERA Bihar, which came into effect on April 1, 2017, is an essential legislation that has transformed the real estate sector in the state. With its implementation, Bihar has joined other states in India that have taken measures to regulate the real estate market and safeguard the interests of homebuyers. The primary objective of RERA Bihar is to establish a transparent and efficient regulatory framework for real estate development. It aims to eliminate fraudulent practices, protect homebuyers from unscrupulous builders, and ensure timely completion of projects. Let’s delve deeper into the key provisions and impact of RERA Bihar on the real estate sector in the state.

Key Provisions of RERA Bihar

RERA Bihar incorporates several key provisions to address the challenges faced by homebuyers and developers in the state. Some of the noteworthy provisions include:

• Mandatory Registration
• Real Estate Agent Registration
• Deposit of Funds
• Timely Completion and Possession
• Grievance Redressal and Dispute Resolution

1. Mandatory Registration

Under RERA Bihar, it is mandatory for all new and ongoing real estate projects with an area exceeding 500 square metres or more than eight apartments to register with the Bihar Real Estate Regulatory Authority (BRERA). This provision ensures that all real estate projects are brought under the ambit of regulation, promoting transparency and accountability.

2. Real Estate Agent Registration

RERA Bihar also emphasises the registration of real estate agents operating in the state. Agents who wish to sell, purchase, or facilitate the sale or purchase of properties are required to obtain registration from BRERA. This provision aims to weed out unscrupulous agents and ensure that only qualified professionals are involved in real estate transactions.

3. Deposit of Funds

One of the significant provisions of RERA Bihar is the requirement for developers to deposit a minimum of 70% of the funds received from homebuyers in a separate escrow account. This provision prevents developers from diverting funds to other projects and ensures that the allocated funds are used exclusively for the designated project’s construction and development.

Also Read: Everything you know about Rera Telangana(TSRERA)

4. Timely Completion and Possession

RERA Bihar imposes strict penalties on developers who fail to deliver projects within the agreed-upon timelines. It holds developers accountable for delays and grants homebuyers the right to claim compensation for any losses incurred due to project delays. This provision safeguards the interests of homebuyers and instills a sense of discipline in the real estate sector.

5. Grievance Redressal and Dispute Resolution

RERA Bihar establishes the Bihar Real Estate Appellate Tribunal and the Bihar Real Estate Regulatory Authority as the competent authorities for dispute resolution. Homebuyers can file complaints and seek redressal through these channels, ensuring a fair and efficient resolution of conflicts.

RERA Bihar: Key Responsibilities and Functions

The functions and services provided by RERA Bihar can be summarised as follows-

• Registration of New Real Estate Projects
• Real estate agent registration
• Redressal of Grievances of Homebuyers and Developers
• Verification of disclosure of project details of real estate projects by promoters and real estate developers
• The Appellate Tribunal of RERA Bihar hears appeals from decisions, directions or orders of the Real Estate Regulatory Authority (RERA Bihar).
• Any home buyer aggrieved by the direction/decision/order of the RERA Bihar Authority or the Adjudicating Officer of Bihar RERA can file an appeal before the Appellate Tribunal of RERA Bihar.
• RERA Bihar ensures that real estate development in the state is not unregulated, and homebuyers get the promised amenities within a given time frame.

Real Estate Regulatory Authority of Bihar

RERA Bihar was enacted on the lines of the Real Estate Regulatory Act of the Central Government i.e. Real Estate (Regulation and Development) Act, 2016. Bihar RERA works as a supervisor and controller of real estate development activities in Bihar. Bihar RERA is ensuring accountability, transparency and timely execution of real estate projects in Bihar. Furthermore, if citizens feel cheated or misled by any real estate developer, they can freely file a complaint with RERA Bihar.

Project Registration Fee

RERA Bihar has classified the fee for registration of projects based on the type of project. The charges for residential projects, commercial projects and mixed-use projects are as follows.

Project Registration Fee by RERA Bihar
Project Type	Description	charge
Plotted Development	Residential plot	Rs 5 per square meter (upper limit Rs 2 lakh)
Group Housing Projects	If the area of the real estate project is less than or equal to 1000 square meters	Rs 5 per square meter
	If the area of the real estate project is more than 1000 square meters	Rs 10 per square meter
mixed development project	If the area of the real estate project is less than or equal to 1000 square meters	Rs 10 per square meter
	If the area of the real estate project is more than 1000 square meters	Rs 15 per square meter
commercial real estate projects	If the area of the real estate project is less than or equal to 1000 square meters	Rs 20 per square meter
	If the area of the real estate project is more than 1000 square meters	Rs 25 per square meter
Late fee charged by RERA Bihar	In case of residential project registration (up to 1000 sq. mts.)	5 lakh rupees
	For all residential, commercial and mixed project registration above 1000 square meters	7 lakh rupees

Similar to a real estate project, a real estate agent can also register with RERA Bihar.

Register as a Real Estate Agent with RERA Bihar (Step by Step)

RERA Bihar is the nodal agency for Real Estate Agents Registration (RERA Online Registration Bihar). It provides a unique ID to real estate agents so that they can legitimately engage in real estate transactions across Bihar. Prospective real estate agents can apply for fresh registration with RERA Bihar in the following steps-

• Step 1: Visit the official website of RERA Bihar, i.e. https://rera.bihar.gov.in/.
• Step 2: On the homepage, click on the ‘Agent Registration’ tab.
• Step 3: Once you click on the ‘Agent Registration’ tab, you will be redirected to https://rera.bihar.gov.in/Newuser.aspx for New User Registration.
• Step 4: Select ‘Real Estate Agent’ and fill the details like
• Promoter Type- Individual or Proprietorship, Company, Partnership Firm, Competent Authority, Limited Liability Partnership (LLP), Society or Trust

1. Pan card details
2. Email id
3. Mobile number

And click on the ‘Register’ tab. This will complete the registration of a new user.

• Step 5: Now, you have to login as an agent. To login as an agent, go to the homepage and click on Login as Agent/Promoter in the login tab.
• Step 6: As soon as you click on the ‘Login as Agent/Promoter’ tab, the following window will open.
• Step 7: Enter ‘Username’, ‘Password’ and captcha code to login. Once you login, you will be asked to fill in the details of the prospective agent and other details to register as a real estate agent with RERA Bihar.

RERA Bihar mandates that all real estate agents must be registered under the RERA Bihar Act. As per the guidelines of RERA Bihar, no real estate agent shall sell / sell any property to any person to enable sale or purchase of any plot/apartment/building in any real estate project without obtaining valid registration under RERA Bihar. Will not buy or represent.

RERA Bihar has warned that if a real estate agent fails to register, a fine of ten thousand rupees will be imposed for each day during that period. This can collectively be up to five per cent of the cost of the apartment/building of the concerned real estate project.

Impact of RERA Bihar on the Real Estate Sector

• Enhanced Transparency
• Boosted Investor Confidence
• Reduced Project Delays
• Dispute Resolution Mechanism
• Quality Control and Accountability

1. Enhanced Transparency

RERA Bihar has brought much-needed transparency to the real estate market. The mandatory registration of projects and agents, along with the disclosure of project details, financial information, and clearances, ensures that homebuyers have access to comprehensive information before making their investment decisions. This transparency has reduced the information asymmetry between developers and buyers, fostering a more equitable and informed real estate ecosystem.

2. Boosted Investor Confidence

With RERA Bihar in place, the real estate sector in Bihar has witnessed a significant boost in investor confidence. The stringent regulations and the establishment of a regulatory authority have instilled trust among investors, both domestic and international, who now have a safer and more reliable environment to invest in. This increased investor confidence has translated into greater investments in real estate projects, leading to overall sectoral growth.

3. Reduced Project Delays

One of the major challenges faced by homebuyers in the pre-RERA era was project delays. Developers would often divert funds to other projects, resulting in delayed delivery of homes. RERA Bihar’s provision of depositing funds in separate escrow accounts has curtailed such malpractices. The mandatory deposit of 70% of the funds received ensures that developers have the necessary financial resources to complete projects on time. This has significantly reduced project delays and provided homebuyers with the assurance of timely possession.

4. Dispute Resolution Mechanism

RERA Bihar has established a robust mechanism for dispute resolution in the real estate sector. The creation of the Bihar Real Estate Appellate Tribunal and the Bihar Real Estate Regulatory Authority has streamlined the process of addressing grievances and resolving disputes between developers and homebuyers. This has empowered homebuyers, who now have a dedicated platform to seek redressal for issues related to project delays, construction quality, or any other concerns they may have.

5. Quality Control and Accountability

RERA Bihar has raised the bar for quality control in the real estate sector. Developers are now required to adhere to strict standards of construction and deliver homes that meet the specified quality parameters. This has compelled developers to focus on delivering high-quality projects to maintain their reputation and comply with RERA guidelines. The increased accountability has resulted in improved construction practices, ensuring that homebuyers receive homes that meet their expectations in terms of quality and specifications.

RERA Bihar Fees and Charges 

Late Fees 

Late Fees for Registration of Residential Projects up to 1,000 sq/m	Rs.5 lakh
Late Fees for all other Residential, Mixed, and Commercial Projects	Rs.7 lakh

Other Charges 

Copies of Documents (First 5 Pages)	Rs.100
Copies of Documents (After 5 Pages)	Rs.20 per page
Filing Written Statement	Rs.200
POA During Hearing	Rs.50
Restoration of Case	Rs.500
Inspection of Case File	Rs.200
Local Site Inspection of the Project by the Authority	Rs.3,000 (within 30 kms) Rs.6,000 (30 kms to 60 kms) Rs.10,000 (above 60 kms)
Amendment in the Application for Registration	Rs.1,000
Submission of Response to Queries	Rs.1,000
Submission of Quarterly Progress Report of Each Project	Rs.1,000
Submission of Audited Statement of Account of the Project	Rs.1,000

How to Register for Promoters 

• Step 1: Navigate to the RERA Bihar website. 
• Step 1: Click the “Project Registration” tab. 
• Step 3: You will be redirected to a new page where you will be presented with Promoter and Real Estate Agent options. 
• Step 4. Select “Promoter”.
• Step 5: Enter pertinent information, such as the category of promoter, PAN number, email address, and mobile number. 
• Step 6: Click the “Register” button to conclude the process.

How to Register for Real Estate Agents

• Step 1: Navigate to the RERA Bihar website. 
• Step 2: Click the “Project Registration” menu. 
• Step 3: You will be redirected to a new page where you will be presented with Promoter and Real Estate Agent options. 
• Step 4. Select “Promoter” 
• Step 5: Enter pertinent information, such as the category of promoter, PAN number, email address, and mobile number. 
• Step 6: Click the “Register” button to conclude the process.

Bihar RERA Office Address

Real Estate Regulatory Authority, 6th Floor, Bihar State Building Construction Corporation Campus, Hospital Road, Shastri Nagar, Patna – 800023 

Conclusion

RERA Bihar has emerged as a game-changer for the real estate sector in Bihar. With its implementation, the state has witnessed a significant transformation in terms of transparency, accountability, and investor confidence. The Act’s provisions, such as mandatory project and agent registration, escrow account requirements, and stringent penalties for delays, have ushered in a new era of fair practices and consumer protection. RERA Bihar has not only benefited homebuyers by safeguarding their interests but has also created a more favorable environment for developers and investors. The Act’s impact on the real estate sector in Bihar has been overwhelmingly positive, leading to increased trust, timely project completion, and overall growth.

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