What is RERA(– the Real Estate (Regulation & Development) Act, 2016 ?
A central law to regulate and develop the real estate sector, ensuring transparency, accountability, and protection for homebuyers. – RERA – the Real Estate (Regulation & Development) Act, 2016 which regulates the real estate sector and safeguards homebuyers.
RERA stands for:
R – Regulatory Oversight
E – Empowering Homebuyers
R – Reforming Real Estate Sector
A – Accountability & Financial Discipline
The Real Estate (Regulation & Development) Act, 2016, commonly known as RERA, is a central legislation enacted by the Government of India to bring transparency, accountability, and efficiency to the real estate sector. Its primary objectives are To protect the interests of homebuyers., To regulate the real estate industry., To standardize practices and ensure timely project delivery., To create a fast-track dispute resolution system between buyers and developers.
Key Features The Real Estate (Regulation & Development) Act, 2016
- Mandatory Registration of Projects : Applies to projects over 500 sq. meters or more than 8 apartments. Builders must obtain a RERA Registration Number before advertising or selling.
- Escrow Account for Funds : 70% of the money collected from buyers must be deposited in a separate bank account to be used only for that project’s construction.
- Transparency in Information : Developers must disclose project details, timelines, approvals, and layouts on the state RERA website.
- Consent Requirement : Any change in project plan/layout requires consent from two-thirds of the allottees.
- Timely Delivery & Penalties : Builders are liable to refund money with interest for delays or defaults.
- Structural Defect Liability : Promoters are responsible for structural defects for 5 years from the date of possession.
- Covers All Project Types : Applicable to residential & commercial projects, and to private & public bodies.
- Dispute Resolution Mechanism : Dedicated Regulatory Authorities, Adjudicating Officers, and Appellate Tribunals for quick case handling.
Key Benefits of The Real Estate (Regulation & Development) Act, 2016 to Homebuyers
- Transparency & Accountability – boosts investor confidence.
- Timely Delivery & Quality Construction – ensures transparent transactions.
- Financial Safeguards – 70% of collected amount kept in a separate bank account.
- Consent Requirement – no project alterations without consent of 2/3rd of allottees.
- Mandatory Registration – for projects over 500 sq. meters or more than 8 apartments.
- RERA Registration Number – must be on all advertisements.
- Covers Residential & Commercial Projects – applies to private and public bodies.
- Refunds & Penalties – refunds for delays/defaults; strict penal provisions for violations.
- Dispute Resolution – fast-track mechanism via Regulatory Authority & Tribunal.
- 5-Year Defect Liability – promoter liable for structural defects from possession date.
- Mandatory Disclosure – promoters must display project details on RERA website.
Do’s for Homebuyers under The Real Estate (Regulation & Development) Act, 2016
- Buy only RERA-registered properties; verify the RERA number.
- Verify developer credentials from RERA’s official portal.
- Understand payment terms & timelines before purchase.
- Read the Agreement for Sale (AFS) thoroughly.
- Check amenities, facilities, and any changes in layout/specifications.
- Keep receipts for all payments made.
- Take possession only after verifying occupancy & completion certificates.
- File complaints promptly for any violations.
- Check possession date in both AFS and RERA registration.
Don’ts for Homebuyers after The Real Estate (Regulation & Development) Act, 2016
- Buyer Don’t skip due diligence—always check project details on the RERA website.
- Buyer Don’t rely only on advertisements—verify with official RERA data.
- Don’t pay more than 10% before signing the AFS.
- Buyer Don’t sign agreements not aligned with the state-notified AFS.
- Don’t give consent for project changes without understanding them.
- Buyer Don’t avoid checking project completion dates.
- Don’t make cash payments—use bank transfers or cheques.
- Buyer Don’t take possession without verifying legal completion documents.
- Don’t delay in reporting RERA violations.
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