What Is RERA? Your Complete Guide to India's Real Estate Law
RERA has fundamentally shifted power toward homebuyers — know your rights before you sign anything.
What Is RERA?
The Real Estate (Regulation and Development) Act, 2016 — commonly called RERA — is a central legislation enacted to bring transparency, accountability, and efficiency to India's residential real estate sector. It came into full force on 1 May 2017, with state-level regulatory authorities (MahaRERA, RERA UP, K-RERA, etc.) set up to administer it locally.
Before RERA, builders routinely delayed projects, diverted funds, and changed project specifications without consequence. Buyers had little legal recourse and courts were flooded with disputes. RERA changed the fundamental dynamics.
Key Provisions That Protect Buyers
1. Mandatory Project Registration
Every residential project with more than 8 units or covering more than 500 sq m of land must be registered with the state RERA authority before the builder can advertise, market, or accept bookings. This is non-negotiable.
Registration requires the builder to submit:
- Layout plans and approvals
- Land title documents
- List of pending litigations
- Promoter's financials and track record
- Estimated project completion timeline
2. Carpet Area Transparency
Before RERA, builders sold on "super built-up area," inflating the stated area by 25–40% with corridors, lobbies, and common areas. RERA mandates that all sales must be quoted on carpet area — the actual usable floor space within your walls.
This single provision has saved buyers lakhs. A ₹1 crore flat sold on 1,200 sq ft super built-up area might be only 850 sq ft carpet area. RERA requires full disclosure.
3. Escrow Account for Funds
Builders must deposit 70% of all collections from buyers into a dedicated escrow account that can only be used for construction of that specific project. This prevents the common malpractice of using money from Project A to fund land acquisition for Project B.
4. Delivery Timeline Commitment
The registered project timeline is legally binding. If the builder delays possession, the buyer is entitled to:
- A refund with interest (SBI MCLR + 2%) if they choose to exit.
- Or compensation at the same interest rate for every month of delay if they choose to continue.
5. Structural Defect Warranty
Builders are liable for 5 years after possession for any structural defects or poor workmanship. If you discover a defect, the builder must rectify it within 30 days at no cost to you.
State RERA Authorities and How to Check Project Registration
| State | Portal |
|---|---|
| Maharashtra | maharera.mahaonline.gov.in |
| Uttar Pradesh | up-rera.in |
| Karnataka | rera.karnataka.gov.in |
| Tamil Nadu | tnrera.in |
| Delhi | dda.gov.in/rera |
| Rajasthan | rera.rajasthan.gov.in |
| Gujarat | gujrera.gujarat.gov.in |
Always verify a project's RERA registration number on the official portal before paying a booking amount. Search by project name or the RERA ID the builder provides. A registered project shows approved plans, registered agent details, and quarterly construction updates.
What Agents Must Do Under RERA
Real estate agents must also register with the state RERA authority. Unregistered agents cannot legally facilitate transactions for RERA-registered projects. When you deal with a broker, ask for their RERA agent registration number and verify it online.
How to File a RERA Complaint
If a builder violates any RERA provision, you can file a complaint:
- Visit your state RERA portal and navigate to the "Complaint" section.
- Fill in project details, nature of grievance, and supporting documents.
- Pay the nominal filing fee (typically ₹1,000–₹5,000).
- The RERA authority must pass an order within 60 days.
- If unsatisfied, you can appeal to the RERA Appellate Tribunal and then to the High Court.
Common grounds for complaint: Delayed possession, change in approved layout, failure to provide promised amenities, agent misconduct.
What RERA Does Not Cover
RERA has important limitations:
- Commercial properties (offices, retail) are largely outside its scope.
- Ongoing projects that received completion certificates before May 2017 are exempt.
- Plotted developments in some states are treated differently.
- RERA does not guarantee project quality beyond structural defects — amenity quality disputes can be harder to resolve.
Practical Checklist Before Booking
- Verify RERA registration number on state portal
- Download and review approved layout plans
- Confirm carpet area figure in the sale agreement
- Check builder's track record on the RERA portal (past projects, delays, complaints filed)
- Ensure the sale agreement references RERA provisions for delay compensation
- Verify your broker's RERA agent ID
These figures are estimates for educational purposes. Consult a SEBI-registered advisor for personalised advice.
Frequently asked questions
Does RERA apply to resale properties?+
No. RERA applies to new residential projects under construction or newly launched. Resale transactions between individual buyers and sellers are not covered, though agents facilitating resale must still be RERA-registered.
What interest rate does a buyer get if the builder delays possession?+
Under RERA, the interest rate for delayed possession refund or compensation is the State Bank of India's Marginal Cost of Funds Based Lending Rate (MCLR) plus 2%, calculated monthly from the agreed possession date.
Can I get a refund if the builder changes the project plan?+
Yes. Any major change to the approved plan requires the consent of at least two-thirds of existing allottees. If you do not agree to the change, you can demand a full refund with interest under RERA.
Is RERA registration the same as project approval from the municipality?+
No. Municipal approvals (commencement certificate, building plan approval) are different from RERA registration. A project needs both. RERA registration is an additional regulatory layer focused on consumer protection, not construction safety.
What if my state's RERA authority is not functional?+
Several states were slow to set up RERA authorities. In such cases, the central government's designated authority handles complaints. However, most major states now have fully functional RERA portals and adjudicating officers.
Try the calculators
Keep reading
- Stamp Duty & Registration Charges in India (2025-26)
Stamp duty and registration charges can add 5–8% to your property cost — here's exactly what to expect state by state.
- GST on Home Purchase in India: What You Actually Pay
GST can add ₹5–18 lakh to the cost of your flat — but only if it applies, and the rules are surprisingly specific.
- What Is PMAY? Pradhan Mantri Awas Yojana Explained
PMAY can put ₹2.67 lakh directly into your pocket as a home loan interest subsidy — if you know how to claim it.
David writes about borrowing without the jargon, after years of helping friends and family decode loan paperwork. He believes everyone deserves to understand what they’re signing.