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Understanding RERA

Your comprehensive guide to the Real Estate (Regulation and Development) Act, 2016 — protecting your rights as a property buyer in India.

What is RERA?

The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, is a landmark legislation enacted by the Indian Parliament to protect homebuyers, promote transparency, and bring accountability in the real estate sector. The Act came into effect on May 1, 2017.

Before RERA, the Indian real estate market was largely unregulated, leading to widespread issues such as project delays, fraudulent practices, lack of standardization in carpet area calculations, and misuse of buyer funds. RERA was introduced to address all these challenges by establishing a regulatory authority in each state.

Under RERA, every real estate project (with certain exceptions for smaller projects) must be registered with the respective state's RERA authority before advertising or selling. Developers are required to disclose project details, timelines, and approvals on the RERA portal, giving buyers complete transparency.

Key RERA Provisions

Mandatory Registration

All commercial and residential projects with land over 500 sq. meters or more than 8 apartments must register with RERA before marketing or sales.

70% Funds in Escrow

Developers must deposit 70% of the project funds in a separate escrow account, to be used only for construction and land costs of that specific project.

Carpet Area Standardization

Properties must be sold based on carpet area (usable area), not super built-up area. This eliminates inflated area claims by developers.

Timely Delivery

Developers must deliver projects within the promised timeline. Delays attract penalties and buyers can claim compensation or full refund with interest.

5-Year Defect Liability

Builders must fix any structural defects or quality issues reported within 5 years of possession, at no additional cost to the buyer.

No Plan Changes Without Consent

Developers cannot change the project plan or layout without the written consent of at least two-thirds of the allottees.

Full Disclosure

Builders must disclose all project details including approvals, layout plans, timeline, number of units, and quarterly progress updates on the RERA website.

Appellate Tribunal

Each state has a Real Estate Appellate Tribunal where buyers can appeal against orders of the RERA authority within 60 days.

How to Verify RERA Registration

Before investing in any property, always verify the project's RERA registration. Here is a step-by-step process:

  1. Visit the official RERA portal of the state where the project is located (see table below).
  2. Navigate to the "Registered Projects" or "Search Projects" section on the portal.
  3. Enter the project name, RERA registration number, or developer name in the search field.
  4. Review the project details including registered carpet area, approved plans, completion timeline, and status of approvals.
  5. Check the project's quarterly progress reports, financial statements, and any complaints filed against the developer.

State-wise RERA Portals

State Authority Name Website
Uttar Pradesh UP RERA www.up-rera.in
Haryana HRERA (Gurugram & Panchkula) haryanarera.gov.in
Delhi Delhi RERA rera.delhi.gov.in
Maharashtra MahaRERA maharera.maharashtra.gov.in
Karnataka K-RERA rera.karnataka.gov.in

How to File a RERA Complaint

If you face issues with a developer — delayed possession, quality defects, false promises, or fund misuse — you can file a complaint with the state RERA authority.

  1. Gather Documentation: Collect all relevant documents including the sale agreement, payment receipts, allotment letter, correspondence with the builder, and any marketing material with promises made.
  2. Register on RERA Portal: Create an account on the respective state RERA portal and navigate to the complaint filing section.
  3. File the Complaint: Fill in the online complaint form with project details, RERA registration number, nature of complaint, and the relief sought. Upload all supporting documents.
  4. Pay the Filing Fee: Pay the nominal complaint filing fee (typically Rs. 1,000 for individuals) through the online payment gateway.
  5. Attend Hearings: After filing, you will receive hearing dates. Attend the hearings (either in person or through an authorized representative) where both parties present their case before the RERA authority.

Frequently Asked Questions

Is RERA registration mandatory for all real estate projects?
RERA registration is mandatory for all residential and commercial projects where the land area exceeds 500 square meters or the number of apartments exceeds eight. However, projects that have received completion certificates before RERA came into effect are exempt. Renovation, repair, or redevelopment projects that do not involve re-allotment or marketing of units are also exempt.
What happens if a developer does not register under RERA?
A developer who fails to register under RERA while advertising, marketing, selling, or constructing any project faces a penalty of up to 10% of the project cost. Continued violation can result in imprisonment for up to 3 years, or both fine and imprisonment. Buyers should never invest in unregistered projects.
Can I get a refund if my project is delayed?
Yes. Under RERA, if a developer fails to deliver the project within the promised timeline, the buyer has the right to withdraw from the project and claim a full refund of the amount paid, along with interest at the prescribed rate. Alternatively, the buyer can choose to continue and claim compensation for the delay period.
What is the carpet area as defined by RERA?
Under RERA, carpet area is defined as the net usable floor area of an apartment, excluding the area covered by external walls, service shafts, exclusive balconies, verandahs, and open terraces. However, internal partition walls are included. This standardization ensures buyers know exactly how much usable space they are paying for.
Does RERA cover resale properties?
RERA primarily covers new projects and the relationship between developers and first-time allottees. Resale transactions between individual buyers and sellers are generally not covered under RERA, though the project's RERA registration details can still be used for verification purposes.
How long does a RERA complaint resolution take?
RERA authorities are mandated to resolve complaints within 60 days from the date of filing. However, in practice, the timeline may vary depending on the complexity of the case and the state. Appeals to the RERA Appellate Tribunal must also be disposed of within 60 days.

All Our Recommended Projects Are RERA Verified

At Shubharambh Infra Advisors, we only recommend RERA-registered projects from trusted developers. Your investment safety is our top priority.

View RERA Verified Projects
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