What Is RERA? The Complete Guide for Property Buyers and Agents
The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, is a landmark legislation that transformed India's real estate sector. Before RERA, the Indian real estate market operated with minimal regulation, leading to widespread issues — project delays spanning years, misleading advertisements about project amenities and carpet areas, diversion of buyer funds to unrelated projects, and virtually no recourse for aggrieved homebuyers. RERA changed all of this by establishing state-level Real Estate Regulatory Authorities with the power to register projects, regulate transactions, and adjudicate disputes.
RERA applies to all residential and commercial real estate projects where the land area exceeds 500 square metres or the number of proposed apartments exceeds eight (including all phases). Each state and union territory has established its own RERA authority, and developers must register their projects with the relevant state authority before advertising, marketing, booking, selling, or offering for sale any plot, apartment, or building. The Act also mandates registration for real estate agents who facilitate transactions in RERA-registered projects.
State-Wise RERA Portals: Where to Search
Each Indian state has its own RERA website where project registrations and details are maintained. Here are the key state RERA portals:
| State | Authority | Approx. Projects |
|---|---|---|
| Maharashtra | MahaRERA | 52,000+ |
| Uttar Pradesh | UP-RERA | 12,000+ |
| Karnataka | K-RERA | 8,500+ |
| Tamil Nadu | TNRERA | 7,000+ |
| Gujarat | GujRERA | 9,000+ |
| Rajasthan | Raj-RERA | 5,000+ |
| Delhi | Delhi RERA | 1,000+ |
| Telangana | TS-RERA | 6,000+ |
| Haryana | H-RERA | 3,000+ |
| West Bengal | WBHIRA | 4,000+ |
What to Check on the RERA Portal Before Buying
When you search for a project on any state RERA portal, verify these critical details:
- Registration status: Confirm the project registration is "Active" and has not expired or been revoked. An expired registration means the developer has not renewed compliance, which is a red flag.
- Completion timeline: Check the proposed and revised completion dates. Compare with the original registration date to see if the project has been delayed. RERA portals show both original and extended timelines.
- Carpet area details: RERA mandates that developers sell on carpet area basis. Verify that the carpet area mentioned in the brochure matches the RERA-registered carpet area for your unit type.
- Complaints and orders: Check if any complaints have been filed against the project or developer. Review any orders passed by the RERA authority — these provide insight into the developer's track record.
- Financial compliance: Some state portals show whether the developer has submitted quarterly financial updates and maintained the designated escrow account as required under RERA.
- Approved plans: Verify that the building plan and layout plan uploaded on the RERA portal match what the developer is showing you. Any deviation is a violation.
RERA for Real Estate Agents: What You Need to Know
Real estate agents and brokers must register with their state RERA authority to legally facilitate transactions. Here is what agents need to understand about RERA compliance:
- Mandatory registration: Under Section 9 of the RERA Act, no real estate agent shall facilitate the sale or purchase of any apartment or plot in a RERA-registered project without obtaining registration. The registration is typically valid for 5 years and must be renewed before expiry.
- Obligations: Registered agents must not facilitate sales in unregistered projects, must not provide false information about projects, and must maintain books of accounts for every transaction facilitated.
- Penalties: Operating without RERA registration can attract penalties of ₹10,000 per day during the period of default. In severe cases, imprisonment of up to 1 year or fine up to 5% of the project cost may apply.
- Benefits: RERA registration adds credibility, builds buyer trust, and is increasingly required by developers to onboard channel partners. Many RERA-registered developers only work with RERA-registered agents.
Managing RERA compliance across multiple projects and agents can be complex. A CRM like Realatic helps real estate agencies track RERA registration status, manage project documents, and ensure all team members maintain compliance.
Key RERA Rules Every Buyer Should Know
- Carpet area pricing: Developers must sell on carpet area basis, not super built-up area. Use our Square Feet / Carpet Area Calculator to understand the difference.
- 70% escrow rule: Developers must deposit 70% of funds collected from buyers into a designated escrow account, used exclusively for project construction. This prevents fund diversion.
- Penalty for delays: If a developer fails to deliver possession on time, they must pay interest to the buyer at the SBI MCLR rate plus 2% from the promised delivery date until actual delivery.
- 5-year defect liability: Developers are liable to rectify structural defects or quality issues for 5 years after possession. This covers cracks, leakage, plumbing issues, and other construction defects.
- No changes without consent: Developers cannot change the project layout, specifications, or approved plans without obtaining consent from 2/3rd of the allottees and RERA authority approval.
Related Resources
Understanding RERA is just one part of the property buying process. Use our other free tools to make informed decisions: Stamp Duty Calculator for registration costs, EMI Calculator for home loan planning, and Capital Gains Calculator for tax implications when selling. Browse all our free real estate tools.