RERA Compliance Guide: Protecting Your Property Rights

The Real Estate (Regulation and Development) Act, 2016 (RERA) is a game-changer for property buyers in India. Understanding RERA compliance helps protect your investment and ensures you're dealing with legitimate builders.

What is RERA?

RERA is a landmark legislation that brings transparency and accountability to India's real estate sector:

• Enacted on May 1, 2016 and came into effect from May 1, 2017
• Mandatory for all ongoing and new residential and commercial projects
• Regulates builders, agents, and promoters
• Establishes state-level Real Estate Regulatory Authorities
• Protects homebuyers' interests with strict timelines and penalties

Key Features of RERA

1. Mandatory Project Registration

• All projects with 8+ apartments or 500 sq meters area must register
• Projects in phases must register each phase separately
• Registration valid for project completion period plus one year
• Cannot advertise or sell without RERA registration

2. Transparency Requirements

• Complete project details must be available on RERA website
• Quarterly progress reports mandatory
• All approvals and NOCs must be uploaded
• Carpet area definition standardized (not super built-up)

3. Escrow Account System

• 70% of funds collected must be kept in escrow account
• Can only be used for construction and land costs
• Prevents fund diversion to other projects
• Ensures project completion

4. Strict Timelines

• Possession must be delivered within committed timeline
• Delays attract interest penalty to buyers
• Buyers can cancel booking and get full refund with interest

How to Verify RERA Registration

Step 1: Visit Your State RERA Website

Each state has its own RERA authority:

• Karnataka: https://rera.karnataka.gov.in
• Maharashtra: https://maharera.mahaonline.gov.in
• Tamil Nadu: https://www.tnrera.in
• Delhi: https://rera.delhi.gov.in
• Telangana: https://rera.telangana.gov.in

Step 2: Search for Project

• Use project name, builder name, or RERA number
• Check registered vs non-registered projects list
• Verify project location and details match

Step 3: Verify Project Details

Check these critical details on RERA portal:

• Registration number: Unique RERA ID
• Validity period: Check registration is active
• Project location: Exact address and survey numbers
• Promoter details: Builder's name and credentials
• Approvals: All necessary clearances and NOCs
• Layout plans: Sanctioned building plans
• Completion date: Promised possession timeline
• Number of units: Total apartments/plots

Your Rights Under RERA

1. Right to Information

• Access complete project information on RERA portal
• Get quarterly construction updates
• Know about any changes in project plans
• Receive detailed payment schedule

2. Right to Timely Possession

• Possession within committed timeline
• If delayed, you can claim interest on amount paid
• Interest rate: MCLR + 2% or as prescribed by state RERA
• Option to cancel booking with full refund plus interest

3. Right to Quality Construction

• Builder responsible for structural defects for 5 years
• Free rectification of defects during defect liability period
• Cannot be forced to accept possession of defective unit

4. Right to Fair Dealing

• Standardized sale agreement with prescribed clauses
• Cannot charge more than registered rate sheet
• No hidden charges or fees beyond approved ones
• Changes in project plan require buyer consent

Red Flags to Watch For

1. No RERA Registration

• Builder cannot explain why project isn't registered
• Promises "registration is in process" for months
• Avoid such projects completely

2. Incomplete Information

• Missing documents on RERA portal
• No quarterly progress reports updated
• Vague or contradictory project details

3. Changed Possession Dates

• Multiple revisions in completion timeline
• No explanation for delays
• Check project history on RERA portal

4. Super Built-up vs Carpet Area Confusion

• Agreement should clearly mention carpet area
• RERA mandates sale based on carpet area only
• Beware of unclear measurement terms

Filing a RERA Complaint

When to File a Complaint

• Project not registered but being marketed
• Possession delayed beyond promised date
• Builder demanding extra charges
• Defects not rectified by builder
• Changes in project without consent
• Refund not provided after cancellation

How to File

1. Register on your state RERA portal
2. Fill online complaint form with all details
3. Upload supporting documents (agreement, receipts, correspondence)
4. Pay nominal filing fee (₹1,000-5,000)
5. Attend hearings as scheduled

Complaint Resolution Timeline

• RERA authority must dispose complaint within 60 days
• Can be extended with reasons, but usually resolved in 3-6 months
• Much faster than consumer courts

RERA Checklist for Buyers

Before Booking

• ☐ Verify RERA registration on state portal
• ☐ Check builder's registration as promoter
• ☐ Verify agent's RERA registration (if applicable)
• ☐ Download and review all project documents
• ☐ Check for any complaints against builder
• ☐ Verify land title and approvals

During Agreement

• ☐ Ensure carpet area is clearly mentioned
• ☐ Check possession date is realistic
• ☐ Verify payment schedule matches RERA-approved terms
• ☐ Look for penalty clause for builder delays
• ☐ Ensure 5-year structural defect liability clause

During Construction

• ☐ Monitor quarterly progress reports on RERA portal
• ☐ Visit site regularly to check progress
• ☐ Keep all payment receipts and correspondence
• ☐ Report any deviations from approved plans

State-Specific Variations

While RERA is central legislation, states have some flexibility:

• Interest rates: Vary by state (typically MCLR + 2%)
• Complaint fees: ₹1,000-5,000 depending on state
• Project threshold: Some states reduced minimum area requirements
• Enforcement: Varies in strictness across states

Frequently Asked Questions

Is RERA registration mandatory for all projects?

Yes, for projects with more than 8 apartments or development area exceeding 500 square meters. Completed projects sold after RERA came into effect must also register if they're selling unsold inventory.

What if my builder is not RERA registered?

Do not proceed with such projects. Non-registration is a serious violation and indicates potential issues. You can file a complaint with the RERA authority for selling without registration.

Can I get a refund if my project is delayed?

Yes, under Section 18 of RERA, you have the option to either wait for completion with interest compensation or withdraw from the project with full refund plus interest.

How long does RERA complaint resolution take?

RERA authorities must dispose complaints within 60 days. In practice, most complaints are resolved within 3-6 months, which is much faster than traditional consumer courts.

Does RERA apply to resale properties?

No, RERA primarily covers new projects and under-construction properties. Resale properties are not covered unless there are structural defects within 5 years from the original possession date.