RERA stands for Real Estate Regulatory Authority. It is established under the Real Estate (Regulation and Development) Act, 2016 which regulates and promotes the real estate division to confirm the sale of apartments, lands, plots and buildings in a seamless and transparent manner. The act focuses on protecting the interest of customers. It was passed by the Parliament in May 2016 with 52 sections to be in force and later the Act came into force with all its 92 sections from 1 May 2017 all across India. So far, except Nagaland all the states & Union Territories have notified their rules with RERA. The enforcement of Real Estate Regulatory Authority is anticipated to bring relief to the homebuyers as after the commencement of the act now builders will be responsible for the delivery of the projects within the stipulated time to keep buyers safe from fraudulent sellers. It is necessary for the project developers to get all the permissions from several government agencies before starting a project and reveal all the information on the website set up by the respective state RERA. Real estate agents shall be provided with a registration number by the regulating authority which they have to mention in all property sales. This will aid in removing the chances of misguiding the buyer. The authority has broad ranging powers to inflict sanctions and incarceration of agents in case of infringement of the law.


  • Every state needs to establish a Real Estate Regulatory Authority to manage real estate developments.
  • Provisions in the act shall be applicable to both residential as well as commercial properties.
  • It standardizes the rules to safeguard the interests of homebuyers and project developers.
  • This Act is likely to bring transparency and accountability in the real estate division.
  • The Act directs at minimizing unrestrained project delays and illicit selling.


The Real Estate Regulatory Authority requires the developers to sell their projects depending on the carpet area.

  • As per the RERA Act, carpet area is the whole area of the floor which can be utilized within the walls of the property. This does not consider the areas like terrace, balconies, etc.
  • This simplified definition of carpet area will make sure that buyers are not misguided by the illegal promoters.
  • Utilizing the standard for carpet area will make sure that there is certitude on the usable area. This also helps in analysing the cost per square feet. The comparison amongst the various projects also becomes easier.


  • Builders have to reveal all the details pertaining to the project on the website of state Real Estate Regulatory Authority and update them on a regular basis.
  • The purchaser will have to pay only according to the carpet area. The builder cannot ask the purchaser to pay for the super built-up area like lift, balcony, lobby etc.
  • Completion & delivery of projects on stipulated time as seventy percent of the money accumulated from the customer has to be sent in a separate bank account and that can be utilized only for finishing the construction of the project.
  • Any holdups in completion of the project will attract the penalty and require the developer to make a payment at the interest rate of two percent above the Marginal cost of funds-based lending rate to the purchaser for a delayed period.
  • For any flaw in the building, the builder will be accountable for a period of five years.
  • Any kind of dispute with the buyer needs to be settled within four months or one hundred twenty days.


Here are the key steps and information related to the registration of projects under Real Estate Regulatory Authority. All residential & commercial projects will have to register only other than those projects where:

  • The promoter has gotten certificate of completion of the project before the advent of the Act.
  • The proposed area of land measuring does not exceed five hundred square meters.
  • The units of apartments are eight or less than eight.
  • Any renovation of an existing building or apartment that does not need marketing, advertising, and selling of any apartment or house.


These documents should entail with the application:

  • Builder’s PAN card
  • Last 3 years ITR & the balance sheet of the builder
  • The builder must clarify about the property like carpet area, balcony, lift, number of floors, parking space etc.
  • The builder must have legal title of the land with proof
  • All the information of the land i.e., rights, title, mortgage
  • In case the builder is not the proprietor of the land then the consent letter of the real owner with documents will be needed
  • Other Details regarding project like location, sanctioned plan, and layout plan etc.
  • Ownership documents i.e., allotment letter, agreement of sale
  • Details of the people involved like Architects, Engineers and Masons etc.


  • Any aggrieved party may lodge a complaint with Real Estate Regulatory Authority for any infringement of the provisions of the Act.
  • If a person is not contented with the decision made by regulatory authority or its officer, he may go for an appeal before the RERA Appellate Tribunal within sixty days after the decision was made.
  • A person can file an appeal to the High Court within 60 days if he is not satisfied with the decision given by Appellate Tribunal.


For Promoters:

Under RERA, there are specific penalties and consequences for promoters (real estate developers and builders) who do not comply with the provisions of the Act.

  • Non-Registration of a project – ten percent of the evaluated cost of the project.
  • Infringement of law – three years of sentence with or without penalty of ten percent of the estimated cost of the project.
  • Submitting false information – five percent of the approximate cost of the project.
  • Other violations – five percent of the approximate cost of the project.

For Real Estate Agents:

Here are some of the penalties that real estate agents may face under RERA:

  • Non-Registration of project – Ten thousand rupees per day on default which can be maximized up to five percent of the estimated cost of the project.
  • Non-fulfilment of compliance with the authority – A fine on a daily basis and which may reach up to five percent of the estimated cost of the project.
  • Omission in complying with the Tribunal – one year sentence with or without fine of ten percent of the evaluated cost of the project.

For Homebuyers:

Here are some of the penalties and remedies for homebuyers under RERA:

  • Unable to comply with the authority – Penalty on day-to-day basis which can be extended up to five percent of the total cost of the apartment.
  • Failure in obeying the tribunal – One year imprisonment with or without ten percent of the total cost of the home or apartment.

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