RERA (Real Estate Regulation Act)
Central legislation enacted in 2016 to protect homebuyers and bring transparency to the real estate sector.
RERA (Real Estate Regulation and Development Act) was enacted by the Indian Parliament in 2016 to regulate the real estate sector and protect homebuyers from fraud and delays.
Key Provisions
For Developers
- Must register all projects above 500 sq m or 8 units
- Cannot advertise or sell without RERA registration
- Must deposit 70% of buyer money in escrow account
- Cannot change plans without 2/3rd buyer consent
- Must provide carpet area, not super built-up
- Must disclose all project details on RERA website
- Must deliver on time or pay interest to buyers
For Buyers
- Access to project details before purchase
- Protection against false advertising
- Right to claim compensation for delays
- Builders liable for structural defects for 5 years
- Easier dispute resolution through RERA tribunals
For Agents
- Must register with RERA
- Cannot facilitate sale of unregistered projects
- Must maintain records of transactions
RERA Website
- Verify project registration
- Check developer track record
- View project approvals and timeline
- File complaints online
Penalties
- Selling without registration: Up to 10% of project cost
- Providing false information: Up to 5% of project cost
- Violation of orders: Imprisonment up to 3 years
Limitation: RERA applies only to projects registered after the Act came into force. Projects launched before and ongoing litigation may not be covered.
Examples
Before buying, verify the RERA registration number on your state's RERA website
If builder delays by 1 year, you can claim interest (typically 9-10% p.a.) on the amount paid