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What is RERA?

The Government of India implemented the Real Estate Regulatory Authority (RERA) bill in 2016. It came into force on and from 1 May 2016, and only 52 sections of its 92 ones were notified. The remaining 40 provisions became effective from 1 May 2017 onwards.

The Act is applicable in all Indian states and union territories. You can find key information on different state RERA online on their official websites. 

The Real Estate Regulatory Authority Act was introduced to protect the interests of homebuyers and boost real estate investments across the country. Since its inception, RERA has enabled greater transparency, accountability, and answerability in the realty sector.

It has also brought a flurry of improvements in the sector like better fraud protection, faster redressal, enhanced clarity about carpet area, prevention of misuse of funds through a reserve account, and mandatory registration of different stakeholders to advertise and sell any project.

Therefore, it is always a smart choice to pick a RERA registered property. Avail a Home Loan in a few simple steps with Tata Capital.

What is the Objective of RERA?

The Indian government introduced the Real Estate Regulatory Authority Act in 2016 to eliminate the problems prevalent in the real estate industry. It was also implemented to address the concerns of various industry stakeholders and safeguard their interests against ill practices.

The primary objective of RERA is to bring positive changes across every aspect of the industry. Through various reforms and regulations, it aims to increase transparency and promote uniformity in the home buying process for every buyer, broker, builder, and real estate agent.

As a result, numerous RERA communities have been set up across different states in India to boost the number of RERA compliant projects, following the rules and guidelines specified by the Act. All the builders and developers are mandated by law to register their projects with these state bodies for approval.

Key Benefits & Salient Features of RERA 

Standardisation of the carpet area

Of the various advantages of the Real Estate Regulatory Authority, standardisation of the carpet area is perhaps the most beneficial. Unlike before, there is a standard formula now that builders can use for calculating carpet area. The Act also prohibits promoters from advertising inflated carpet areas to increase the selling price.

Reduction in advance payment

Builders and developers cannot ask for an advance payment of more than 10% of the property's cost before you've signed the sales agreement. This will help you plan your finances better before availing a home loan to purchase the property.

Quick conflict resolution

Some key benefits of Real Estate Regulatory Authority include quicker dispute resolution and grievance redressal. These will be overseen through dedicated adjudicating officers and appellate tribunal.

Timely delivery

Under the Real Estate Regulatory Authority Act, if there's any delay in the project delivery, the developer is mandated to pay specific percentage of interest to the buyer on the invested amount.

Protection of buyer rights

If buyers find quality or structural defects in the property, builders are liable to rectify the same within 30 days without charging anything extra. This provision is available for five years from the date of possession. 

What is the Impact of RERA on Home Buyers?

Here's how RERA has brought standardisation, accountability, and transparency between homebuyers and developers –

  • Transparency

Under the law, developers must disclose all the project details like layouts, approvals, plans, etc., to the homebuyers. All the details of RERA approved projects will be displayed on RERA's official website.

  • Buyer's security

Developers are mandated to create a reserve project account and park 70% of all the funds received there for RERA approved projects. They can only fund a particular project with the collected amount. This has been one of the most positive RERA impact on real estate transactions, ensuring there are no project delays.

  • Standardised sales agreement

RERA benefits for homebuyers also include a standard model for sales between the homebuyers and promoters. So, there are no penal or one-sided clauses harming the buyer's interests.

  • Penalty on violations

All Act violations attract stiff monetary penalties, usually up to 10% of the total project cost. This has been done to ensure the law is taken seriously.

What do you need to know about the RERA Act in different states?

According to the Real Estate Regulation Authority Act, 2016, every state and Union Territory (UT) in India must establish its RERA regulatory body. No builder or developer can market their projects without seeking approval from their respective state's regulator.

So far, around 30 states and UTs have established either interim or permanent regulatory bodies. Below are the RERA details of some of these states –

  • MahaRERA

The Maharashtra Real Estate Regulatory Authority came into force on May 1, 2017. It is a permanent body that handles project registrations in Maharashtra and UTs like Daman & Diu and Dadra & Nagar Haveli.

  • GujRERA

The Gujarat RERA was established in May 2017 to promote and regulate the state's realty sector. Buyers can easily check the registered projects and their progress using their official website.


The Tamil Nadu Real Estate Regulatory Authority came into being on June 22, 2017, after the state approved the general rules. It has jurisdiction over Tamil Nadu as well as the Andaman & Nicobar Islands.


The Uttar Pradesh RERA was established under Section 20 of the Real Estate Regulation Authority Act. It was launched to protect home buyers against fraudulent practices and encourage investments in the sector. Builders/Developers can register themselves on UPRERA's official website and buyers can check the project details.


How to do Registration Under the RERA act?

All new or upcoming projects are mandated for registration before launch. The RERA registration process is the same across the states.

If you want to register for a project, simply follow the steps given below –

Firstly, open a bank account as specified by the  section 4 (2) (I) (D) of the Real Estate Regulatory Authority act.

Then, collect and prepare all the essential documents for RERA registration online.

Next, complete and submit Form A to register. If you're an agent or promoter, you will also have to submit Form B, defining your role in the industry. Besides these, you may have to submit additional forms depending on RERA rules.

Now, pay the required registration fee to complete the process and become RERA registered. Know the fee will vary from state to state.

Once your RERA online registration is successful, you will be allotted a number. You can use the same for any project related communication.

And you're done!

What are the Documents Required to Register a Project Under RERA?

Following are some of the essential documents required to carry out the RERA registration process –

  • PAN card of the promotor(s) and a copy of their Aadhar card

  • Promotor's passport-sized photograph. If the promotor is a firm/company, then photos of all founding members like chairman and director are required for RERA registration.

  • Past 3 years' income tax returns of the promotor

  • Auditor report, balance sheet, and profit & loss account of the promoter

  • Land details (legal title deed, mortgage, rights)

  • RERA approved project details, including layout plan and sanction plan

  • Details of the number of apartments, carpet area, balcony, and open terrace, if any.

  • Ownership document proofs (sale agreement, proforma of allotment letter)

  • Authenticated legal title deed or any other relevant document

  • Other RERA registration documents specified by the respective state authority

How to Ensure a Property is RERA Compliant?

To check if a project is RERA compliant or not, you need to consider the factors mentioned below –

  • All builders and developers need to get the necessary consents and licenses before promoting a new project.

  • Real estate developers need to create a reserve account to save the funds deposited by buyers for a RERA approved project. They must show proof that they are using 70% of the deposited amount for the project instead of other investments.

  • If the property area exceeds 500 square meters, builders must get it RERA approved before advertising any project built on the property.

Besides, you can visit the official Real Estate Regulatory Authority website of the respective state and access the available information.

What are the Penalties under RERA Act? 

Below are the penalties levied on promotors under the RERA act.


Self Employed Non-Professional Charged 10% of the estimated cost of a RERA approved project.
Providing false project information Charged 5% of the estimated project cost
Violation of laws Either charged 10% of the estimated project cost or imprisoned for up to 3 years
Severe non-compliance with RERA Daily penalty of up to 5% of RERA compliant project's total estimated value

*Final ROI and Processing Fees may vary based on assessment program and Loan amount


Below are the RERA penalties levied on real estate agents.


Non-registration of a project Charged Rs. 10,000/day for default extending up to 5% of the RERA approved property cost
Non-compliance with the Appellate Tribunal Charged 10% of the estimated project cost or up to 1 year of imprisonment


The Real Estate Regulatory Authority bill was first introduced in 2013. After the RERA introduction, there were a few rounds of revisions before the bill was approved by Rajya Sabha on 10th March 2016 and by Lok Sabha on 15th March 2016.

Finally, RERA India came into force on 1st May 2016, with only 61 of the 92 sections notified, and the remaining sections were made effective a year later. Soon after, the act was implemented across different states and UTs.

If you are building a real estate project on land exceeding 500 square meters or housing more than eight apartments, you must meet the RERA registration compulsory requirement. RERA registration is mandatory compliance for advertising and selling a real estate project.

Property buyers can use the RERA number to access the complete project details, from the construction progress to the launch date.

To run a quick RERA number verification check, you can follow the steps below:

  1. Go to the official RERA website of your respective state or UT.

  2. Locate the 'Registered Projects' tab from the 'Registration' option on the homepage.

  3. Once you click on the option, you'll be directed to a third-party website.

  4. Then, select the 'Select User Type' option under the 'Registered Projects' option.

  5. To search the information for a RERA approved project, you can either use the project name, its registration number, or the promotor's number.

  6. Once the search results are displayed, click on 'View' to read all the project information. 

The Real Estate Regulatory Authority benefits the property buyers in multiple ways. The key benefits of RERA are mentioned below –


  • Under RERA, builders cannot take more than 10% of the property cost as advance from the buyer

  • Buyers can get any structural or quality defects in the finished project by the builder at no extra cost. This service will be valid for five years from the date of possession.

  • Buyers have the right to access all the information related to a project.

You can file a complaint against any RERA complaint project online. Just go to your RERA portal, access the complaint form using the 'COMPLAINT REGISTRATION option, and fill in the required details. You will also need to provide personal details and relevant documents to support your claim. However, you will be charged a processing fee.