What is RERA Act 2016? Real Estate Regulation & Rules

The Real Estate Regulatory Authority (RERA) supervises the real estate market in India. The RERA Act was established to encourage home buyers’ interest and to boost the real estate industry. Find out more about the RERA Act 2016, its benefits, how to apply and much more.

RERA (also known as Real Estate (Regulation and Development) Act 2016) was a major step in regulatory direction for the unorganised real estate industry of India. This RERA Act works as a protector of the rights of homebuyers who have been targeted by fraudster builders and false claims.

RERA’s official name can be described as Real Estate Regulatory Authority. Except for a handful, nearly all states in India have set up State Real Estate Regulatory Authorities (State RERAs) to oversee the real estate market within the state, including UP Rera, Rera Gujarat, Rera Karnataka, Rera Rajasthan and Rera Maharashtra and many more.

Also, read: RERA Delhi

What is RERA Act 2016?

Real Estate Regulation and Development Act was created in 2016, is a law that regulates the largely unorganised as well as unregulated industry. Without a competent regulator, instances of disputes and tussles between developers and homebuyers were rising.

The RERA Act 2016 was introduced to address the worries and complaints from real estate development companies, homeowners, realtors, real estate agents, as well as other real estate sector players. Following the implementation of the RERA Act, Rera approved projects are favoured by buyers of homes.

Any real estate project with a total area of greater than 500 square metres has to be registered with the respective RERA authorities. Furthermore, each builder is required to notify buyers about how construction is progressing and adhere to the timeframes and adhere to regulations set out within the RERA Act.

Goals of the RERA Act

Some of the key goals of the RERA Act include:

• Transparency: Developers have to submit their projects to the RERA authority and record the information about their projects in great detail. This improves transparency when it comes to transactions.
• Consumer Protection: ensuring timely project completion and adhering to the agreed-upon specifications safeguards homeowners’ interests. This is among the primary goals of RERA.
• Dispute Resolution Real estate Appellate Tribunals have been established to provide quick and effective ways of settling disputes that may arise between developers and homeowners.
• Reliable: Timelines for the completion of projects and handover are inviolable. Developers must maintain separate accounts with banks for project funds, so that financial transactions are carried out only for projects.
• To promote fair practices: the main objectives that are the focus of RERA is to encourage transparent and honest transactions between developers and buyers. Through this, RERA wants to curb the use of fraudulent practices.
• Regulate Agents: Real estate agents must be registered and adhere to RERA guidelines. The standards of professional conduct are maintained this way.
• Standardisation: Through the standardisation of procedures and practices, general efficiency is increased for the residential real estate market.

Benefits of the RERA Act 2016

The RERA Act has brought some advantages since the time it was passed, and let’s look at:

• RERA has increased transparency and accountability in the real estate market in India. Since it is required for developers of real estate to be registered in the RERA system of the state before beginning projects, the chances of false claims have been reduced. The RERA Act protects the rights of both buyers as well as real developers of real estate developers.

• RERA Act has mandated the creation of state-specific regulatory bodies which monitor the development of real estate in each state and territory of the union. This has slowed down the time in the completion of projects and prevented false information from buyers.

• RERA protects the interests of homeowners by imposing fines on developers who are in default, who delay projects, or do not adhere to this Act.

However, developers may ask for an extension of the project delivery timelines and penalty norms under section 5 of the RERA Act under two circumstances:

• If there is a delay in the project’s completion due to natural disasters such as cyclones, floods or hurricanes. The developer can provide the reason for the delay, and then pay the cost (if there is any ).

• In the event of a shortage in raw materials or a labour shortage, and so on. Then the developer can justify that he’s not to blame. However, the developer is required to notify the RERA Authority in writing. The delay must not exceed one year.

RERA Benefits for the Homebuyers

It is the RERA Act broadly safeguards the buyer’s interest in the home. Let’s take a look at the main advantages of RERA–

• In the wake of the RERA Act, the developers are required to publish the details of their project via the official site of RERA and be kept up-to-date to maintain the buyer’s confidence.
• The buyer/consumer will be responsible for the flats in the Carpet Area and not the Super built-up area.
• A real estate agent has to transfer approximately 70% of the project’s funds into an escrow account separate from the project that he may be able to use for construction only.
• If there is a delay during building a building the developer must be liable for 2% of the buyer of the property.
• After the completion of a project, the developer must provide no-cost assistance in the event of construction defects to buyers during the first five years.
• The developer must address the concerns of buyers for 120 days.
• The developer is not able to alter the building plan that has been approved without the permission of a minimum 1/3rd of the homeowners in the project.
• According to the RERA Act, the developer is not allowed to take more than 10% as advance payments from buyers of homes.
• In the event of a contradiction within the title document in the event of any discrepancy, the Act provides the right for the homeowner to request reimbursement from developers.
• Projects spread over 500 sq. metres, which is more than the units require the requirement of being registered under RERA act.
• It is a requirement for all developers to channel 70 per cent of cash made to an Escrow account.
• One prototype contract for sale is executed between the builder as well as the buyer of the home.

What is an escrow account under RERA?

As per the RERA Act, around 70 per cent of the amount that homebuyers receive should be kept in an escrow account. An escrow bank account is a type of bank account that acts as a shock-absorbing account in the event of default by the real estate agent.

Because only 30 per cent of the cash that homebuyers receive can be used for construction, and the rest remains in an escrow account and is under the control of RERA. The idea of having an Escrow account was conceived in light of the cases where developers would swoop in the money of homebuyers and then make use of the entire sum to build a new house.

If the project got stopped or was delayed, the total amount paid by homebuyers was wiped out. Escrow accounts have protected the hard-earned funds of homebuyers from shady developers.

What are the changes proposed regarding the super built-up area in RERA Act?

As per the RERA Act, the promoters of real estate development projects must charge buyers for only the carpeting area. This is different from the previous policy, which charged for super-built-up areas. For those who aren’t familiar, the Super built-up space comprises common areas, such as reception, stairs, lobbies,and lift shafts, for instance. However, the carpet area is the area that can be used for daily use of the home.

What does the RERA Act say about building plan alteration by the developer?

RERA Act was brought to prevent the fraud and sloppy practices of some property developers. It was passed to stop the fraud and malpractices committed by some real estate developers. RERA Act bars real estate developers from making changes to the plan of construction unilaterally. RERA Act prohibits builders from making modifications to the building plan approved for a building, apartment or common areas without the written permission of more than 2/3 of the owners of the project.

How will RERA impact real estate agents?

With the RERA Act taking the market, developers and builders must become more open and transparent. Here are a few ways in which RERA can affect real property.

1. The RERA website: Visit the official Real Estate Regulatory Authority (RERA) website for your state.
2. Projects that you can search for Search function: Use the search feature to find accepted projects simply by typing in the name of the project, the builder’s name, location, or.
3. Verify for the RERA registration code: Make sure the project is registered under an active RERA registration number. This signifies its approval status.
4. Check details: Read details about the project, including approval status, builder details and project timetable, available at the RERA website.
5. Contact local authorities: Call your local RERA office or agents for real estate for more details and confirmation of project approvals.

How do I find RERA approved projects?

To find Rera approved projects, follow these steps:

1. The RERA website: Visit the official Real Estate Regulatory Authority (RERA) website for your state.
2. Find projects Search function: Use the search feature to search for accepted projects simply by typing in the name of the project, the builder’s name, location, or.
3. Verify the RERA Registration number: Make sure the project is registered with an active RERA registration number. This signifies its approval status.
4. Check details: Read details of the project, including the status of approval, information about the builder and project timetable, available at the RERA website.
5. Contact local authorities: Call your local RERA Offices or Real Estate Agents for more details and confirmation of project approvals.

How can real estate developers register their projects under RERA?

To register their real estate venture, the real estate developer or builder must apply to the relevant RERA in the prescribed manner and form within that time frame and with the requisite fee as per the guidelines of the Authority. The developer should include these documents along with the application for registration of their project in the form of RERA.

• Short details of the company/enterprise that is being developed by the developer, such as the name type (company or partnership, or proprietorship), with an address that is registered and the name and photograph of the promoter or developer.
• Information on the projects that were launched by the developer in the last five years, as well as the present situation for the proposed project. Information on any outstanding cases or payments due from the developer.
• An authenticated/attested copy of the commencement certificate (CC) and mandatory approvals from the competent Authority for the realty project.
• If the developer wants to complete the project in phases, the attested/authenticated copy of the afore-mentioned requirements from the competent Authority for each project phase, separately.
• Building layout plan, final sanctioned plan, and details/specifications of a specific phase or the proposed project, duly authorised by the competent Authority.
• Information on the development work that needs to be carried out in the course of the project.
• Information about the exact location of the project, delineation of the areas to be used for the project, and clear boundaries, along with the latitude and longitude of the project’s ending points.
• A completed Proforma copy of the sales agreement, conveyance deed and the allotment document required to be signed by purchasers of the property.
• The code, configuration and the area of carpet in the apartments or flats for to be sold in the respective project, as well as terraces, verandas or balcony areas where applicable, are included in the property available for sale.
• Specifications for the area and the number of garages available for sale in the proposed development.
• Provide address and name proofs for those involved in the project’s construction, including architects, contractors, structural engineers, and real estate agents etc.

The developer must include a declaration backed by an affidavit signed by him/her or by any authorised person. The affidavit consists of the following six heads-

• The developer owns legal title to the land upon which the project is set for development. When the property is under the control of a third party, legally valid documents for the title must be provided.
• The property concerned has to be free of all burdens, or, if there are any encumbrances, the exact details and size of them, along with the title and rights interests or the names of the parties concerned.
• The estimated duration of the project or phase’s completion.
• The developer or promoter of the real estate project must put 70 per cent of the money given by the buyers of the project into a designated account called an escrow account. It must be kept in a designated bank. The builder is only able to use the funds in this account to pay for the construction costs of the project. An architect’s certification or a chartered accountant who is a practising chartered accountant, with the requirement that the withdrawal be made, must be accompanied by.
• Developers will designate an accountant who is a chartered accountant (CA) to review the bank accounts at the close of each fiscal year.
• The developer is expected to obtain all pending approvals from the relevant authorities promptly. This developer has a construction project that is affixing all documents needed by the RERA Act.

How to File a Complaint Under RERA?

The complaint of a developer, promoter and real estate broker may be filed with RERA in accordance with Section 31 of the RERA Act 2016. The complaint may be handled by the adjudicating officers. A person can submit the complaint formsuch as Form M or Form N. But the form must be drafted in a specific form. The complaint will be recorded, and it will be resolved within about 90 days.

What happens if the builder delays possession, as per RERA?

In accordance with Section 18.2 of the RERA Act, if the possession of the property is held up by the promoter, the consumer can end the contract and demand a reimbursement. The promoter has to refund the total amount paid by the buyer, along with interest. This Section 18 also allows a consumer to carry on with the project and seek an amount of compensation from the builder for each month that passes before the possession of the property.

The amount of interest to be paid by the developer, as well as the form of complaints, is stipulated in the RERA Rules that vary from state to state. Consumers may file a complaint with the company in the event of possession deficiency pursuant to Section 31 of the Act. In accordance with Section 31 of the Act, any person who has been harmed can submit a complaint to the authority responsible for regulation in case of infractions to the law. The complaint could be filed by the homebuyer and the Association of Allottees.

What are the Penalties under RERA?

The RERA Act penalties for breaking the law for builders and promoters. Here’s a list of the possible penalties the developer/builder may face when a homeowner files a complaint against them:

• Developers must contribute 10 percent of the estimated cost if they don’t comply with the relevant RERA Act. In addition, they will be assessed 5percent of the estimated cost when they are found to have provided incorrect information regarding the project.
• If an individual developer is found to have violated any law enacted under the RERA Act, there will be jail time of up to 3 years, or 10 percent of the project’s estimated cost.
• Agents in the real estate industry must be liable to Rs 10,000 daily or 5 percent of the price of the project in case they’re found to be carrying out the construction or selling of their property without current RERA authorisation.
• In the event of a serious breach, RERA can result in a fine as high as 5 percent of the value of the project to developers.
• If a construction company fails to adhere to the ruling by the Appellate Tribunal, the builder could be penalised with imprisonment of up to one year or 10 per cent of the project’s costs or both.
• Homebuyers need to be alert before filing a complaint, as should the charges made against the developer are found to be insubstantial or false, the homeowner could be charged the developer a fine that could be up to 5 per cent of the value of the project. Additionally, non-compliance with the Appellate Tribunal can cost the homebuyer 10 percent of the project’s price or up to a one-year period of jail time.

RERA Act in different states of India

The RERA Act was applied in more than 22 states and territories, working towards resolving disputes and complaints in all states.ian states and six union territories over the last two years. It has been implemented proactively.

For example, MahaRERA or RERA Maharashtra has received more than 6,631 complaints (as of April 2019) and has settled 64% of disputes. The same is true for other states such as West Bengal, Manipur, and Assam, which are getting ready to launch their own RERA websites.

State Specific RERA Regulations

The following are the state-specific RERA regulations:-

What is RERA Kayda?

RERA Kyada actually means RERA Act. The term RERA Kyada is an Marathi word. The name was coined by Marathi since Maharashtra was among the states that first set out to set the state of MahaRERA and to implement the RERA Kyada program for builders of the state.

RERA Website and Implementation

The RERA Act being successfully implemented in more than 27 Indian states, as well as six union territories, which include Gujarat, Madhya Pradesh, Chandigarh, Uttar Pradesh, Delhi, Maharashtra, Andhra Pradesh, Odisha, Bihar, Rajasthan, Jharkhand, Uttarakhand, Tamil Nadu, Karnataka, Punjab, Chhattisgarh, Haryana, Assam, Telangana, Himachal Pradesh, Goa, Tripura, Puducherry, Kerala, Manipur, Mizoram, Daman and Diu, Lakshadweep, Andaman and Nicobar Islands, and Dadra and Nagar Haveli.

Unified RERA Portal Launched to Streamline Real Estate Regulation

The Ministry of Housing & Urban Affairs has announced the Unified RERA portal (rera.mohua.gov.in). This was announced at the 5th Central Advisory Council meeting, making a significant leap in the field of real estate regulations.

What does the RERA Unified Portal Provide?

• The portal provides a centralised platform for stakeholders- including homebuyers, developers, and regulators.
• To access comprehensive real estate data nationwide.
• This initiative aims to bolster transparency, accountability, and standardisation across states and union territories.

The Ministry of Housing & Urban Affairs, Manohar Lal Khattar, has praised the portal as a major step in making it easier for home buyers, ensuring time-to-completion of projects, and also bringing discipline to the sector. He demanded that every state and UT implement RERA with a good conscience and to fully safeguard consumers.

Discussions at the council revealed RERA’s 8-year journey, with a particular focus on the need for rapid resolution of consumer complaints, as well as the resurgence of abandoned property projects. Officials proposed the creation of Standard Operating Procedures (SOPs) to ensure their uniform application, a united database of national projects, and a central committee to coordinate the policies of the states. With 35 states as well as UTs establishing RERA authorities with 29 appellate tribunals and 27 adjudicating officials, the new portal builds on a solid regulatory base which already covers the registration of 151,113 projects, 106,545 agents and 147,383 cases that have been resolved.

Latest updates

The Real Estate (Regulation and Development) Act of 2016 continues to evolve and is designed to bring greater transparency, accountability, as well as fairness in India’s real estate sector. In the last few months, we have seen significant changes across different states, which reflect the difficulties and progress made since RERA’s implementation. RERA. Here’s a quick outline of the most significant developments that will shape the real estate market in 2025.

Supreme Court calls for stronger RERA enforcement

In March 2025, the Supreme Court expressed dissatisfaction with the current state of RERA implementation, labelling its performance as “disappointing.” The Court stressed the need for stricter enforcement to ensure the Act fulfils its primary objectives–protecting homebuyers, improving transparency, and speeding up dispute resolutions. Despite handling more than 1.21 lakh complaints in the entire country, there are still concerns about delays in procedures and the inconsistent performance that exists among RERA authorities across the states.

Introduction of ‘RERA 2.0’ for improved buyer safeguards

The 2025 amendments–collectively referred to as RERA 2.0–introduce stronger compliance standards for developers and agents. This includes tighter monitoring mechanisms as well as higher penalties for registering a project without proper information or not. The goal is to rebuild trust in buyers, cut down on fraud, and also encourage buyers to confirm the project’s details by using the official government RERA portals before purchasing.

UP RERA’s action against incomplete ‘canvas flats’

Then, in May of 2025, Uttar Pradesh RERA issued an explicit warning to builders selling incomplete “canvas flats,” which are not equipped with the necessary equipment and fittings. Builders who do not comply with this directive face penalties that can reach 5 per cent of the total cost of the project. This action directly addresses the growing complaints from customers who are forced to buy properties that are not complete and will ensure complete fulfilment of the promised amenities.

Maharashtra leads in project registrations

Maharashtra remains a leader in setting new benchmarks by establishing a strong regulatory framework. By May 2025, MahaRERA had surpassed 50,000 registered projects–representing nearly 35% of all RERA registrations in India. This accomplishment highlights Maharashtra’s leadership in transparent oversight of projects as well as reducing speculation and increasing investors’ confidence in the real property market.

Gujarat introduces new banking compliance norms

Beginning in January 2025, GujRERA introduced stricter finance management guidelines that require three separate bank accounts to be set up for each registered project. In addition, 70% of the funds should be kept in an escrow account specifically designated to cover construction-related costs. This reform is designed to limit the misuse of funds, guarantee timely project completion, and increase accountability for developers.

What are the challenges in front of RERA?

RERA is certainly a major action taken in the field of real estate and has produced some results in recent years. It is a significant step in real estate and has shown results. RERA Act has enhanced the transparency of the real estate industry, thus creating a secure for homebuyers and investors by removing non-registered sellers from the property. However, there are some issues and flaws in the RERA Act.

Inadequate rules for approvals for projects – despite talking in depth about the responsibilities and rights of homeowners as well as real estate development companies, however, the RERA Act is silent on the subject of delays in needed approvals owing to government approval. The general rule is that government approvals can take as long as 2 years after the time of request. The law does not make government officials responsible for delays.

A Single Window Mechanism is not available – Developers of real estate projects face the arduous task of getting individual approval from each department in the government. This can add up to the overall project completion timetable. A single window mechanism would have helped speed up the speed of project completion.

Uncertainty regarding specific state content – The lack of clarity regarding certain aspects of the RERA act is unclear. For instance, RERA authorities in the states of RERA officials from Delhi, Karnataka, Haryana, Gujarat and Uttar Pradesh have not yet released a standard template for certifications by auditors, engineers, as well as chartered accountants.

Tedious Registration Process- There is no uniformity among states. RERA means that the registration process is extremely tedious. For instance, the presence in 2 RERAs or an alternative authority, for instance, WB-HIRA. West Bengal Housing Industry Regulatory Authority (WB-HIRA) results in the registration process for projects and real estate agents being difficult and tiring.

Lack of Technical Knowledge- The technology-driven and online registration process could be useful for developers in metropolitan areas; however, it poses an issue for developers as well as builders from non-metro or Tier 2/3 cities. RERA should begin an outreach program to promote developers’ education, and also to begin the registration process in the local language.

frequently asked questions

Q: What is the RERA Act 2016?
A: The RERA Act 2016 is a law enacted to regulate the real estate sector in India, ensuring transparency, timely project delivery, and protection for home buyers.

Q: Who does the RERA Act 2016 apply to?
A: The RERA Act 2016 applies to all real estate developers, agents, and builders involved in residential and commercial projects across India.

Q: What are the key benefits of the RERA Act 2016?
A: RERA Act 2016 protects home buyers, ensures project transparency, mandates registration of projects, and provides a legal mechanism to address complaints.

Q: How does the RERA Act 2016 help home buyers?
A: Under the RERA Act 2016, home buyers get timely updates on projects, clear pricing, proper approvals, and a legal platform to resolve disputes with builders.