What is RERA?

RERA stands for the Real Estate (Regulation and Development) Act, 2016. It is India's most significant property buyer protection legislation, passed by Parliament to bring accountability, transparency, and fairness to one of the country's largest — and previously most unregulated — sectors.

Before RERA, Indian home buyers had almost no legal recourse when builders delayed projects by years, diverted funds to other projects, changed flat sizes without permission, or made promises in brochures that were never kept. RERA changed this fundamentally. It created a state-level regulatory body for every state, mandated project registration, and gave buyers enforceable rights for the first time.

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Why this matters to you: Under RERA, if your builder delays possession by even a single day beyond the date in your agreement, you are entitled to interest at approximately 10.75% per annum on every rupee you've paid — or a full refund with interest if you choose to exit.

Why Was RERA Needed? The Problem Before 2016

India's real estate sector before 2016 was plagued with systemic problems that hurt millions of home buyers:

After RERA (2017 onwards)
  • Builder must register project before launch
  • 70% of funds locked in escrow — construction only
  • Possession delays attract interest penalty
  • Changes to plans need buyer consent
  • Buyers can file complaints online
  • Real estate agents must also register
Before RERA (pre-2016)
  • No mandatory registration for projects
  • Funds diverted freely to other projects
  • No penalty for builder delays — ever
  • Builders changed plans without notice
  • Buyers had to go to consumer courts (years)
  • Unregulated agents, no accountability

The result was that by 2016, over 4.5 lakh apartments were stuck in legal disputes across India — with buyers having paid full or partial amounts and receiving nothing for years. RERA was the government's response to this systemic failure.

What Projects Must Register Under RERA?

Not every construction activity falls under RERA. Here's exactly what must be registered:

Projects That Must Register Under RERA
  • Any residential project with a plot area exceeding 500 square metres
  • Any project with more than 8 apartments, regardless of plot size
  • Any commercial project for sale to the public
  • Any ongoing project that had not received a Completion Certificate before May 1, 2017
  • Projects involving plotted development with more than 8 plots on 500+ sq m
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Exemptions: Renovations, repair work, individual home construction, and projects with completion certificates before RERA's implementation are exempt. Some states have set lower thresholds — always check your state's specific rules.

The 70% Escrow Rule — The Most Important Provision

The most powerful financial protection in RERA is the mandatory escrow account rule. Here's exactly how it works:

1

Builder Opens Separate Bank Account Per Project

For every RERA-registered project, the builder must open a dedicated bank account linked to that project only — separate from all other accounts.

2

70% of All Collections Deposited Here

At least 70% of every rupee collected from buyers — booking amounts, installments, everything — must go into this escrow account. Only 30% can be withdrawn freely.

3

Money Used Only for This Project

Funds from the escrow can only be withdrawn for construction costs and land costs of this specific project. Builders cannot use your money to fund other projects.

4

Architect and Engineer Certification Required

To withdraw from the escrow, the builder needs a certificate from the project's architect and engineer confirming the construction has reached the stated stage — preventing false withdrawal claims.

This single rule addresses the root cause of most Indian real estate project failures — builders using money from Project A to fund Project B, leaving buyers in Project A with a stalled construction site.

Your Rights as a Buyer Under RERA

RERA gives home buyers a comprehensive set of legally enforceable rights — many for the first time in India's property history:

Your Right What It Means Practically Status
Right to Information Access to all project details — approved plan, layout, specs, RERA registration — on the state portal at any time Guaranteed
Right to On-Time Possession Builder must deliver on the date in your agreement. Delay = interest at ~10.75% p.a. or full refund with interest Guaranteed
Right to Accurate Measurements All pricing must be on carpet area. Super built-up area pricing is prohibited under RERA Guaranteed
Right to Structural Warranty Builder liable for structural defects in your apartment for 5 years after possession date Guaranteed
Right Against Modifications Builder cannot alter approved plans, structural design or specifications without 2/3rd buyer consent Guaranteed
Right to Complain File complaint with state RERA authority online — adjudicating officer must decide within 60 days Guaranteed
Right to Appeal If dissatisfied with RERA authority decision, appeal to RERA Appellate Tribunal within 60 days Guaranteed

Builder Obligations Under RERA

RERA imposes strict obligations on developers at every stage of the project lifecycle:

Before Launch

Builders must register the project with the state RERA authority before advertising, booking, selling, or even accepting any application money. Violation of this alone can lead to a penalty of up to 10% of the project cost.

During Construction

Builders must update the RERA portal quarterly with construction progress updates — photographs, completion percentages, and financial statements. Buyers can track this online in real time.

At Possession

Builders must issue an Occupancy Certificate and a Possession Certificate at handover. They must also hand over all original title documents and execute the Conveyance Deed within 3 months of majority of buyers occupying the project.

Penalties for RERA Violations

Violation Penalty for Builder
Not registering project Up to 10% of project cost; repeat = up to 3 years imprisonment
Providing false information Up to 5% of project cost
Delay in possession Interest at SBI MCLR + 2% p.a. on all amounts paid by buyer
Structural defect (5-year period) Must rectify at own cost within 30 days; compensation for losses
Violating RERA orders Up to 1 year imprisonment OR 10% of project cost, or both
Agent operating without registration ₹10,000 per day of default

State RERA Portals — Verify Any Project

Every state has its own RERA portal where you can verify any project's registration status, check builder details, see possession commitments, and file complaints:

State RERA Authority Portal URL Projects Registered*
Karnataka K-RERA rera.karnataka.gov.in 85,000+
Maharashtra MahaRERA maharerait.maharashtra.gov.in 41,000+
Telangana TGRERA rera.telangana.gov.in 12,000+
Tamil Nadu TNRERA tnrera.in 8,500+
Gujarat GUJRERA gujrera.gujarat.gov.in 6,000+
Uttar Pradesh UP RERA up-rera.in 22,000+
Haryana Haryana RERA haryanarera.gov.in 9,000+

*Approximate cumulative registrations as of 2026. Figures include projects and agents.

How to Check if a Project is RERA Registered

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Before paying any booking amount: Always verify RERA registration independently — don't just trust the RERA number printed in the builder's brochure. Takes less than 2 minutes on the state portal.
1

Go to Your State's RERA Portal

Use the table above to find your state's RERA website. All portals have a project search function on their homepage.

2

Search by Project Name or RERA Number

Enter the project name, developer name, or the RERA registration number the builder gave you. Results appear instantly.

3

Verify Key Details

Check: project name matches exactly, possession date as registered, approved number of units and floors, and whether the project status is Active (not Lapsed or Revoked).

4

Download the Registration Certificate

Most portals allow you to download the official RERA registration certificate. Keep a copy for your records — this is your legal document.

How to File a RERA Complaint

Filing a RERA complaint is designed to be simple enough to do without a lawyer. Here's the process:

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Before filing: Send a written notice to the builder by email and registered post giving them 15–30 days to resolve the issue. This demonstrates good faith and often resolves matters before a formal complaint is needed. Keep all communication for records.

If the issue isn't resolved, visit your state's RERA portal, register as a complainant, fill the online complaint form with project details and nature of grievance, pay the nominal fee (₹1,000–₹5,000 depending on state), and upload supporting documents — agreement, payment receipts, correspondence with builder.

The RERA adjudicating officer is required to decide within 60 days. If not satisfied, you can appeal to the RERA Appellate Tribunal within 60 days, and then to the High Court.

Limitations of RERA — What It Doesn't Cover

RERA is powerful but has blind spots every buyer should know:

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RERA does not cover: Resale properties (only new projects), plots in some states, projects completed before May 2017, small projects below the 500 sq m / 8-unit threshold, and rental disputes. For resale, you need separate due diligence on title and encumbrances.

Also, while RERA gives you the right to compensation, enforcement can be slow — some states' RERA authorities have large backlogs. States like Maharashtra (MahaRERA) and Gujarat have more robust enforcement than others.

RERA for Real Estate Agents

RERA also regulates real estate agents for the first time in India. Agents must:

  • Register with the state RERA authority before facilitating any sale or purchase
  • Not deal in unregistered projects
  • Maintain records of all transactions for a minimum of 5 years
  • Ensure buyers are aware of all project details before booking

Agents who violate these provisions can be fined ₹10,000 per day. Always ask to see your agent's RERA registration number before engaging them.

Occupancy Certificate (OC) Carpet Area Escrow Account Stamp Duty Builder-Buyer Agreement Sale Deed Conveyance Deed Possession Certificate Encumbrance Certificate FSI / FAR Completion Certificate

Frequently Asked Questions About RERA

RERA stands for Real Estate (Regulation and Development) Act, 2016. It is a central law enacted by the Parliament of India and implemented by all states and union territories through their respective state RERA authorities.
Yes. Under Section 3 of RERA, all residential and commercial real estate projects with a plot area exceeding 500 square metres OR involving more than 8 apartments are mandatorily required to register with the State RERA Authority before advertising or accepting bookings. Any project not registered is illegal to sell.
Visit your state's RERA portal (rera.karnataka.gov.in for Karnataka, maharerait.maharashtra.gov.in for Maharashtra, rera.telangana.gov.in for Telangana). Search by project name or RERA registration number. Verify the possession date, project status, and builder details independently — don't rely only on what the builder tells you.
RERA mandates that builders deposit at least 70% of all amounts collected from buyers into a dedicated escrow account for each project. This money can only be withdrawn for construction and land costs of that specific project — not diverted elsewhere. Withdrawals require certification from the project's architect and engineer. This rule prevents the most common cause of project delays in India.
If the builder delays possession beyond the RERA-registered date, you have two options: (1) Continue in the project and receive interest at SBI MCLR + 2% (approximately 10.75% per annum) on all amounts paid, for every month of delay. (2) Exit the project and receive a full refund plus the same interest rate from the date of each payment made. The builder must pay within 45 days of the RERA authority's order.
Yes. RERA is designed for self-representation. You can file a complaint online on your state's RERA portal by registering as a complainant, filling the complaint form, paying a nominal fee (₹1,000–₹5,000 depending on state), and uploading your documents. A lawyer is not mandatory, though having one helps for complex disputes. The adjudicating officer must pass an order within 60 days.
No. RERA applies only to new projects being sold for the first time by a builder or developer. Resale transactions between individual buyers and sellers fall outside RERA's scope. For resale properties, you must do your own due diligence — check the title deed, encumbrance certificate, property tax receipts, and society NOC independently.
Under Section 14(3) of RERA, the builder is responsible for rectifying any structural defects — cracks in walls, leaking roofs, defective workmanship — that arise within 5 years of possession. The buyer must report the defect in writing, and the builder must fix it at their own cost within 30 days. If they fail to do so, the buyer can claim compensation.
A builder who promotes, markets, books, sells, or even accepts applications for an unregistered project can be penalised up to 10% of the project's estimated cost. A second violation can result in imprisonment of up to 3 years, or both fine and imprisonment. Do not book any apartment where the builder cannot produce a valid RERA registration certificate.
RERA is the central legislation — the parent Act passed by Parliament. MahaRERA is the Maharashtra state RERA authority that implements and enforces RERA within Maharashtra. Similarly, K-RERA operates in Karnataka, TGRERA in Telangana, TNRERA in Tamil Nadu, and so on. The central RERA Act sets minimum standards; states can add stricter provisions. MahaRERA is considered one of India's most effective state-level implementations.

Explore More

Now that you understand RERA, here are the next most important topics for any Indian home buyer:

💰 Stamp Duty →
How much tax you pay at registration
 📐 Carpet Area →
What area you actually get
 📋 Occupancy Certificate →
Why OC is non-negotiable
 🏦 EMI Calculator →
Plan your home loan repayment
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