2 min read
25 May 2021

What is RERA ACT?

RERA stands for Real Estate Regulatory Authority, which came into existence as per Real Estate (Regulation and Development) Act, 2016 which aims to bring transparency to the real estate industry and address the existing discrepancies and issues within it. The act was passed by the Indian Parliament in 2016 and came into effect in May 2017 to make the home buying process more transparent and address the concerns of home buyers, builders, brokers, and other real estate industry stakeholders. Since its inception, RERA has implemented many reforms, and more are on the anvil. That is why, as a home buyer or a builder, knowing RERA rules and guidelines will help you navigate the real estate landscape with ease.

The Real Estate (Regulation and Development) Act, 2016 (RERA Act) is a comprehensive legislation in India that aims to regulate the real estate sector, protect the interests of homebuyers, and promote transparency and accountability in the industry. Along with the Act, there are specific rules and regulations framed by each state to implement and enforce RERA effectively. While the exact rules may vary slightly between states, here is an overview of the key provisions of the RERA Act and common features found in the rules:

Provisions under RERA Act

1. Registration of projects:

  • Developers must register their real estate projects with the respective state's Real Estate Regulatory Authority (RERA) before advertising, marketing, or selling any units.
  • Detailed information about the project, including land title, approvals, layout plans, schedule, and implementation status, must be provided at the time of registration.

2. Compulsory disclosure:

  • Developers are required to disclose all relevant information about the project on the RERA website, such as project details, plans, specifications, carpet area, amenities, etc.
  • Any changes or modifications to the project must be disclosed and communicated to buyers.

3. Escrow account:

  • Developers must maintain a separate escrow account for each project, where a minimum of 70% of the funds received from buyers is to be deposited. These funds can only be utilized for the specific project's construction and development.

4. Carpet area:

  • The sale of units is based on the carpet area, which is the net usable floor area within the walls of the unit, excluding the balcony, terrace, and common areas.
  • Developers must clearly mention the carpet area in the sale agreements and advertisements.

5. Timely completion:

  • RERA emphasizes timely completion of projects, and developers must adhere to the proposed timeline and deliver the project as per the commitments made to buyers.
  • If there is any delay, developers are liable to pay penalties and compensation to buyers.

6. Real estate agents:

  • Real estate agents and brokers must register with RERA and provide accurate information about themselves, the projects they are dealing with, and the commission they receive.

7. Buyer protection and grievance redressal:

  • RERA provides a platform for buyers to file complaints and seek redressal for any issues or grievances they have with developers or agents.
  • Each state establishes a Real Estate Appellate Tribunal to hear and resolve disputes between buyers and developers.

It is important to note that the rules and regulations may vary from state to state, so it is advisable to refer to the specific RERA rules of the concerned state for detailed provisions and requirements

Key benefits offered by RERA

RERA has brought about a positive change in every facet of the real estate sector. Here is how:

  • RERA aims to reduce project delays and property fraud. To do so, authorities have made it mandatory for all builders/ developers to carry out RERA registration before they start a project.
  • RERA is sub-divided into smaller regulatory bodies, each of which looks after the real estate development in a single state or union territory in India.
  • RERA rules apply to both residential and commercial properties.
  • The standardisation brought about by RERA aims to protect the interests of buyers and developers alike.
  • The RERA Act has brought about more accountability and transparency within the real estate industry.

How will RERA impact real estate agents?

With RERA coming into effect, builders and developers have to be more transparent. Here are the ways in which RERA impacts real estate.

  • The respective state RERA must register all proposed projects exceeding an area of 500 sq. mt. or more than 8 apartments.
  • Builders must deposit 70% of the project money collected from home buyers in bank accounts, through cheques. This makes it impossible to engage in fraudulent transactions or money laundering. This requirement ensures proper documentation and accountability for every rupee spent and gained.
  • There will be one model sale agreement between all builders and home buyers.

RERA Act in different states of India

The RERA Act has been implemented in more than 22 Ind working towards solving complaints and disputes in each state.ian states and 6 union territories in the past two years, actively.

For instance, MahaRERA or RERA Maharashtra, has received around 6,631 complaints (as of April 2019) and has resolved 64% disputes. Following suit are other states like West Bengal, Manipur, and Assam that are gearing up to launch their RERA websites.

List of states that have enforced RERA ACT

The Real Estate (Regulation and Development) Act, 2016 (RERA) had been enacted and enforced in the following states and union territories in India:

Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Punjab, Rajasthan, Sikkim, Tamil Nadu, Telangana, Tripura, Uttar Pradesh, Uttarakhand, West Bengal, Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Lakshadweep, Puducherry. Here is the list of their official website:

State-wise RERA Official Website
Rera Bihar https://rera.bihar.gov.in
Rera Telangana http://rera.telangana.gov.in
Rera Punjab https://rera.punjab.gov.in
Rera Madhya Pradesh http://www.rera.mp.gov.in
Rera Haryana https://haryanarera.gov.in
Rera Uttar Pradesh https://www.up-rera.in
Rera Tamil Nadu https://www.rera.tn.gov.in
Rera Gujarat https://gujrera.gujarat.gov.in
Rera Rajasthan http://rera.rajasthan.gov.in


Please note that the status of RERA implementation and the list of states may change over time. It is advisable to check for the latest updates from the respective state authorities or the official website of the Ministry of Housing and Urban Affairs, Government of India, for the most recent information on RERA enforcement.

RERA registration fees

The registration fees for RERA (Real Estate Regulatory Authority) vary from state to state in India. Each state has its own set of rules and regulations, and the registration fees are determined accordingly. The fees are generally calculated based on the type of project, the number of units, and the area of the project.

In most states, the registration fees are charged based on the square footage or the number of apartments/ units in the project. It is typically a percentage of the project cost or a fixed amount, whichever is higher. The registration fees can range from a few thousand rupees to several lakhs, depending on the size and value of the project.

To know the specific registration fees applicable in your state, it is advisable to visit the official website of the respective state's RERA authority or consult with a qualified professional familiar with real estate regulations in that particular state.

Projects that come under RERA

Once all states and union territories comply with RERA, all real estate projects will come under its purview. In the interim, take a look at a few conditions that determine when a project falls under RERA and when it does not.

  • Projects that do not have a completion certificate but were completed before the implementation of the RERA Act is a part of RERA.
  • Projects that have undertaken construction for the purpose of renovation/ repair/ re-development, and are not re-allotting, marketing, advertising, selling, or allotting any apartments, plot, or building, will not come under the purview of RERA.
  • Project that is under construction have to report each phase of construction as a standalone project through a fresh RERA registration.

As a home buyer it is important for you to select a RERA registered project, to make a safe investment and eliminate any possible losses. Additionally, apply for a cost-effective home loan to simplify and economise the home-buying process. For instance, you can apply for a home loan of up to Rs. 15 crore* based on eligibility from Bajaj Finserv. Apart from getting access to a hefty sanction on a competitive interest rate, you can also enjoy a flexible tenure and other benefits. Moreover, you can apply for the loan under PMAY and get CLSS benefits of up to Rs. 2.67 lakh. Best of all, easy home loan eligibility criteria and minimal documentation requirements make this loan very easy to apply for. To get started, simply check your pre-approved offer and choose a customised loan deal that fits your needs.

While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent inaccuracies or typographical errors or delays in updating the information. The material contained in this site, and on associated web pages, is for reference and general information purpose and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. In case any inconsistencies observed, please click on reach us.

*Terms and conditions apply

Documents required to register a project under RERA

The documents required to register a project under the Real Estate (Regulation and Development) Act, 2016 (RERA) in India may vary slightly from state to state. However, here are some common documents typically required for project registration:

1 Project details:

  • Project name, address, and location details.
  • Details of the promoter/developer, including name, address, and contact information.

2. Property details:

  • Property title deed and ownership documents.
  • Layout plan and site plan of the project.
  • Approved building plan and layout by the competent authority.

3.Financial information:

  • Audited balance sheets and profit and loss statements of the promoter for the past three years.
  • Details of the funds available for the completion of the project.

4. Legal and Regulatory Compliance:

  • Copies of all necessary approvals, clearances, and no-objection certificates (NOCs) from relevant authorities.
  • Encumbrance certificate to show that the property is free from any legal liabilities or charges.

5. Schedule of completion:

  • The proposed schedule for completing the project, including the date of possession for each phase.

6. Carpet area details:

  • Declaration of the carpet area of each apartment/flat and common areas.

7. Agreement for sale:

  • A sample copy of the agreement for sale, including all the terms and conditions offered to buyers.

8. Project cost and financing:

  • Breakup of the total project cost, including land cost, construction cost, and other expenses.
  • Details of the sources of financing, including loans and equity.

9. Bank account details:

  • Details of the separate bank account to be maintained for the project funds.

10. Promoter's PAN and Aadhar Details:

  • Copies of the promoter's PAN card and Aadhar card.

11. Promoter's Photograph:

  • A passport-sized photograph of the promoter.

12. Other Documents:

  • Any other documents or information as required by the state's RERA authority.

RERA Act Rules: Overview

The Real Estate (Regulation and Development) Act, 2016 (RERA) is a vital legislation in India that aims to regulate the real estate sector and safeguard the interests of homebuyers. Here's an overview of the key features and rules of the RERA Act:

  1. Establishment of regulatory authority: Each state and union territory has a Real Estate Regulatory Authority to oversee and regulate the real estate sector, ensuring compliance with the Act's provisions.
  2. Mandatory project registration: Real estate projects with a certain number of units or area must be registered with the state's RERA authority before advertising or selling to buyers.
  3. Online registration: Developers must register their projects through a centralized online portal, promoting transparency and accessibility for homebuyers.
  4. Escrow account: Developers must deposit 70% of the funds collected from buyers into a separate escrow account, ensuring the money is used only for the specific project.
  5. Disclosure of Information: Comprehensive project details, including promoter information, approvals, layout plans, completion schedule, etc., must be provided on the RERA website for informed decision-making.
  6. Carpet area basis: Residential unit prices must be based on the carpet area, ensuring transparency in pricing.
  7. Sales only after registration: Developers can market and sell units only after the project is registered with RERA, preventing unauthorized projects.
  8. Structural defects liability: Developers are responsible for any structural defects for five years after possession is handed over to buyers.
  9. Regulation of Real Estate Agents: Real estate agents must be registered with RERA and comply with the Act's rules.
  10. Grievance redressal: Real Estate Appellate Tribunals handle disputes between buyers and developers, ensuring timely resolutions.

The RERA Act has brought significant reforms to the real estate sector, enhancing transparency and accountability, and benefiting both homebuyers and developers. Buyers are advised to check for RERA registration before investing in real estate projects for their protection.

frequently asked questions

Why do we need RERA?

RERA has been put in place to guarantee that home buyers have a safe and transparent real estate market to invest in. It safeguards the interests of home buyers by setting up regulations for the sale of real estate and ensuring that developers abide by specific standards. Furthermore, it holds developers accountable for any delays or irregularities in their operations, as well as ensuring that developers keep proper records and that buyers are aware of their rights when investing in property.

With RERA in place, every builder or developer must inform home buyers of the progress of construction. They must also offer them keys to their property by the mentioned date. Lastly, they must abide by every rule outlined by RERA to ensure accountability.

How will RERA impact home buyers?

RERA benefits home buyers in several ways. Take a look at what they are.

  • With the implementation of RERA’s rules, builders must disclose every detail of the project they have undertaken on RERA’s official website.
  • More importantly, they have to update this information on a regular basis. This assures buyers of transparency regarding project timelines.
  • Per RERA rules, you have to pay for the property based on the carpet area or the area enclosed by walls. Builders cannot charge you for the super built-up area that includes lifts, balconies, stairs, and lobbies.
  • Builders have to put 70% of the money they collect from home buyers into a separate bank account. They can only use this money for construction purposes.
  • RERA lays emphasis on timely completion of projects. Any delay means that the developer has to pay you interest of 2% over SBI’s MCLR for the period of delay.
  • After you get a handover, you can report construction defects for up to 5 years and have the developer rectify them.
  • Developers have to resolve disputes with buyers within 120 days of filing it.
  • The developer or builder cannot make alterations or additions to the building plan without informing two-thirds of the owners about such a change. It can only proceed if a majority of home buyers provide their consent.
  • The Act prohibits developers from taking more than 10% as advance from home buyers.
  • If at the time of possession, you discover a discrepancy in your title deed, you can immediately ask for compensation from the developer.
What are the penalties under RERA?

As a home buyer, you can register a complaint with RERA or the Appellate Tribunal. Based on the offence you mention, the developer or promoter is charged a penalty. Here is a list of penalties applicable in case that they are found guilty.

  • If promoters do not register under RERA, they must pay 10% of the project's estimated cost. Providing false information about the project will incur a charge of 5% of the project's estimated cost.
  • For promoters, violation of laws can lead to imprisonment for up to 3 years or cost them 10% of the project’s estimated cost.
  • Agents are charged Rs. 10,000 per day for conducting construction and sales on their project sans RERA registration. This charge is up to 5% of the cost of the project.
  • Severe non-compliance with RERA will require developers to pay a daily penalty of up to 5% of the project’s probable value.
  • In case of non-compliance with the Appellate Tribunal, the penalty is imprisonment up to 1 year, or 10% of the project’s probable cost, or both.

RERA requires buyers to comply with its regulations. If you fail to do so, you will face a penalty of up to 5% of the approximate cost of the project each day. If you do not comply with the Appellate Tribunal, you could face serious consequences. A court can sentence someone to up to 1 year in prison or impose a penalty of 10% of the project's probable cost. Additionally, you may face both imprisonment and the penalty.

How to register projects under RERA

If you wish to register a project under RERA Arunachal Pradesh, RERA Sikkim, RERA Haryana, RERA Kerala, or any other state, follow these steps:

  • Open a bank account as specified by Section 4 (2) (I) (D) of the RERA Act and then collect all the necessary documents.
  • Fill and submit Form A, the form for RERA registration. As a promoter or agent, you will also have to submit Form B, declaring your role within the real estate industry.
  • Apart from this, you may have to submit other forms as per RERA rules to clarify your project’s details.
  • Pay the RERA registration fees to complete the registration process. This amount varies from state to state.
  • Once registered, use the RERA number allotted to you and the project for all future communication.
How do I raise a complaint against a builder in RERA?

To raise a complaint against a builder under the Real Estate (Regulation and Development) Act, 2016 (RERA), you can follow these steps:

  1. Gather relevant documents
  2. Visit the RERA website of your state
  3. Fill the complaint form and attach supporting documents
  4. Pay the required fees, if applicable
  5. Submit the complaint and get a registration number
  6. RERA may attempt mediation or refer the case to the Adjudicating Officer
  7. The Adjudicating Officer will conduct a hearing and issue an order
  8. The builder must comply with the order within the given time frame

How is the carpet area defined under the RERA Act?

The guidelines define carpet area for a home or apartment as the area within the four walls of the house. This excludes the amenities or common area measurements usually included in the super built-up area.

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