What is the Eligibility Criteria and Documents Required for Self-Regulatory Organisation?

A Self-Regulatory Organisation or SRO in real estate can ensure excellent professionalism from developers and promoters. It can also bring consistency and accountability to India’s real estate sector and discourage fraudulent practices. How? By ensuring that project developers strictly adhere to RERA’s rules.

No wonder Maharashtra wants to introduce SROs as an extra layer of protection for homebuyers, which will be registered under MahaRERA.

Additional Read – Home Buying In 2021: Is It the Best Time to Buy A New House Now?

SRO eligibility

Here are the eligibility criteria to form a self-regulatory organisation:

• Since SROs are self-regulatory bodies, a federation, group or association of individuals from within the real estate industry, like project promoters or advertisers, can become its members. Only then will an SRO gain a legal entity.

• However, this does not mean an SRO can provide judgement or conduct tribunals for aggrieved homebuyers. They can simply provide resolutions, facilitate out-of-court settlements or escalate relevant issues to MahaRERA.

• The second self-regulatory organisation eligibility criteria states that an SRO should have a minimum of 500 MahaRERA approved projects. This is a combined number for all members within an SRO. This rule is critical to building an SRO’s credibility.

• While an SRO cannot recommend any changes or amendments to MahaRERA’s rules and policies, they can decide their own membership fee, duration, code of conduct, and qualification criteria.

Now that you know about the primary eligibility requirements, let’s understand the documentation process.

Mandatory SRO documents

To officially register your SRO with the MahaRERA, make sure you have the following documents:

• The original proof of SRO incorporation or registration. This can be done before approval or refusal of your SRO by MahaRERA.

• A complete list of the MahaRERA approved projects undertaken by all the members within the proposed organisation.

• A copy of the complete guidelines, rules, membership details and code of conduct for the SRO.

• Personal details of designation bearers within the SRO and the complete contact details of the proposed SRO.

• Document informing the total number of members (should be at least 500) within the SRO.

What roles will the SRO filter serve for the real estate industry?

SROs will ensure that even after a developer receives their MahaRERA license, they continue following the policies stipulated by this organisation. A self-regulatory organisation will also perform checks on the authenticity and validity of any document provided by the developer to prospective homebuyers.

Through self-regulation, different promoters and developers will feel liable to update valid and authentic information about their projects. And, this will lead to increased transparency and safety between developers and buyers.

Thus, creating a holistic real estate ecosystem built on enhanced transparency and buyer trust.

Additional Read – Types of Home Loans available in India

The bottom line

Following the proposal and benefits of SROs, now is an excellent time to purchase a home in Maharashtra. Have you already found one but are falling short on funds? Fret not! Apply for a home loan from one of India’s most trustworthy lending institutions – Tata Capital.

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