RERA Compliance FAQ

Every RERA-registered project has a unique registration number that can be verified on the respective state RERA website. Visit the RERA portal of the state where the project is located — for example, MahaRERA (maharera.mahaonline.gov.in) for Maharashtra, RERA Karnataka (rera.karnataka.gov.in), TS-RERA (rera.telangana.gov.in), or UP-RERA (up-rera.in). Search by project name, promoter name, or RERA registration number. The portal displays project details including: approved plans, carpet area of each unit type, completion timeline, project account details, quarterly compliance status, and any complaints filed. If a project claims RERA registration but you cannot find it on the portal, it may be fraudulent — never invest without verifying. All project advertisements in India must now display the RERA registration number prominently. Non-compliance by builders attracts penalties up to 10% of project cost.

For RERA registration, builders must submit: authenticated copy of PAN card, registration documents of the promoter entity, copy of building plan approval from the competent authority, proforma of allotment letter and sale agreement, details of the project including layout plan, development plan, and specifications, declaration about the percentage of carpet area allocated for common areas, status of title and encumbrances on the land, details of the project architect, structural engineer, and contractors, quarterly financial audit certificates, and a separate RERA-mandated escrow bank account (where 70% of buyer payments must be deposited — this protects buyers from fund diversion). The registration fee varies by state — in Maharashtra it is Rs 5 per sq m of land area (minimum Rs 50,000). Registration is typically valid for the project completion period as declared by the promoter. Extensions require fresh application with justification.

RERA prescribes significant penalties for non-compliant builders and agents: For promoters — failure to register attracts imprisonment up to 3 years and/or fine up to 10% of estimated project cost. Providing false information carries imprisonment up to 3 years. Non-compliance with RERA authority orders attracts imprisonment up to 3 years and/or daily fine up to 5% of estimated cost. Delay in project delivery — builder must pay interest to buyers at SBI Prime Lending Rate + 2% (currently approximately 10-11% per annum) on the amount paid. For real estate agents — operating without RERA registration attracts fine of Rs 10,000 per day up to 5% of the cost of the apartment. For buyers — non-compliance with RERA appellate tribunal orders attracts imprisonment up to 1 year and/or fine for each day of default up to 10% of the apartment cost. These penalties have made RERA a genuine deterrent, though enforcement varies significantly between states.

Under RERA (Section 2(k)), carpet area is defined as the net usable floor area of an apartment, excluding the area covered by external walls but including the area covered by internal partition walls. It specifically excludes: balcony area, terrace area, open terrace area, and area under exclusive balcony or verandah. Before RERA, builders sold on "super built-up area" which inflated the number by 30-50% by including common areas like lobbies, staircases, swimming pools, and club houses. RERA mandates that builders sell only on carpet area basis, making price comparisons transparent for Indian buyers. For example, a flat advertised as 1,500 sq ft super built-up might have only 900-1,000 sq ft carpet area. When comparing properties, always ask for and verify the RERA-registered carpet area. The ratio of carpet to super built-up (called the loading factor) varies from 1.25 in efficient buildings to 1.50+ in luxury projects with expansive amenities.

Any allottee (home buyer), association of allottees, or prospective buyer can file a complaint with the state RERA authority against a registered promoter or agent. Common grounds include: delay in possession beyond the promised date, defects in construction quality, deviation from approved sanctioned plans, false advertising or misrepresentation, failure to provide promised amenities, non-registration of the project, and violation of agreement terms. Filing is typically online through the state RERA portal with a fee of Rs 1,000-5,000 (varies by state). You need to submit: copy of the sale agreement, proof of payments made, RERA registration number, and documentary evidence of the grievance. RERA authorities must dispose of complaints within 60 days. If unsatisfied, you can appeal to the RERA Appellate Tribunal within 60 days of the order. Beyond RERA, buyers can also approach the Consumer Forum or NCLT depending on the nature of the dispute.

RERA mandates that every registered project must maintain a separate bank account (escrow account) where 70% of all amounts collected from buyers for that project must be deposited. This money can only be withdrawn in proportion to the percentage of project completion, as certified by an architect, engineer, and chartered accountant. This provision (Section 4(2)(l)(D)) was created to address the widespread problem in Indian real estate of builders diverting buyer funds to other projects or for personal use, leaving the original project stalled. The builder must submit quarterly financial statements and project progress reports to the RERA authority. Banks monitor the escrow account and release funds only against certified stage-completion. Violations attract heavy penalties and even registration cancellation. This single provision has been the most impactful change brought by RERA, directly protecting buyer funds and reducing the incidence of stalled projects that plagued Indian real estate for decades.

RERA primarily applies to real estate projects developed for sale, not individual home construction on your own plot. Specifically, RERA registration is required for: projects with land area exceeding 500 sq m, or projects with more than 8 apartments proposed in any phase, whether developed by individual promoters or companies, where units are sold before completion. Individual home construction (you building your own house on your own plot for personal use) is exempt from RERA. However, if you hire a builder who develops homes for sale (even row houses or villa projects), and the project exceeds the threshold, RERA applies. Also, plotted development projects selling more than 8 plots above 500 sq m must register under RERA in most states. If you are buying a villa in a gated community or a plot in a developer's layout, verify RERA registration. For self-construction, building plan approval from the local authority (corporation/municipality) is the primary regulatory requirement, not RERA.

Under Section 14(3) of RERA, builders are liable for structural defects and deficiencies in workmanship, quality, or service for a period of 5 years from the date of handing over possession. If any defect is brought to the builder's notice within this period, the builder must rectify it within 30 days at no extra cost to the buyer. If the builder fails to rectify, the buyer can file a RERA complaint seeking repair costs or compensation. Covered defects include: structural cracks in walls or ceiling, water seepage and leakage, plumbing defects, electrical issues, defective flooring or tiling, poor-quality fittings that fail prematurely, and non-functional common amenities. This is a significant protection for Indian home buyers, as post-possession quality issues were historically dismissed by builders with no legal recourse. To invoke this protection, document defects with photographs, send written notice to the builder (email with read receipt or registered post), and file with RERA if not resolved within 30 days.

RERA provides strong remedies for buyers when projects are delayed beyond the promised possession date (mentioned in the sale agreement and RERA registration). Options include: Interest compensation — the builder must pay interest at the prescribed rate (SBI PLR + 2%, currently around 10-11% per annum) for every month of delay, calculated on the total amount paid by the buyer. Withdrawal with refund — the buyer can choose to withdraw from the project and receive a full refund of all amounts paid, with interest, within 60 days of the order. Continued interest — if the buyer wishes to stay in the project, they receive monthly interest until actual possession. Force majeure — builders can claim extension for genuine force majeure events (natural disasters, government-imposed lockdowns) but must prove the delay was beyond their control. Buyer forums and legal practitioners have successfully obtained refunds running into crores under these provisions, particularly in Delhi-NCR where hundreds of projects were delayed beyond the RERA-registered dates.

A RERA-registered real estate agent acts as an intermediary facilitating property transactions between buyers and builders or between secondary market sellers and buyers. Under RERA, any person who negotiates or acts on behalf of a buyer or seller for a fee must be registered as a real estate agent with the state RERA authority. Registration requires: PAN, address proof, details of past projects dealt with, and a fee of Rs 10,000-25,000 (varies by state). Agents must not facilitate transactions in unregistered projects, must not provide false information, and must maintain proper records of transactions. You do not legally need an agent to buy property in India — you can directly approach builders for primary sales. However, agents are useful for: secondary market transactions (resale flats), navigating documentation, and shortlisting from multiple projects. Agent commissions in India range from 1-2% of property value, typically paid by the seller. On AECORD, verified agents are RERA-registered with transparent fee structures.