The questions buyers ask agents, and the questions RERA exams ask everyone, answered briefly with the exact section of the 2016 Act so you can check the source yourself.
RERA stands for the Real Estate (Regulation and Development) Act, 2016, India's central law for property projects, enforced by a Real Estate Regulatory Authority in each state. Its operative sections took effect on 1 May 2017. It requires project registration (Section 3), agent registration (Section 9), 70% escrow of buyer money and refunds or interest for delay (Section 18).
RERACertified™ Professional (RCP) walks through the RERA Act section by section plus your state's rules, with a final exam and a verifiable certificate. RERACertified sells this course. RCP is a private certification and does not replace your state RERA agent registration.
See RERACertified™ Pro — ₹4,999 →Most RERA questions come back to a dozen sections. Learn this table and you can place almost any client question in the Act.
| Section | What it covers | Who it binds |
|---|---|---|
| 2(k), 2(za), 2(zm) | Carpet area, interest, real estate agent (definitions) | Everyone |
| 3 | Project registration before any marketing or sale; exemptions in 3(2) | Promoter |
| 4(2)(l)(D) | 70% of buyer money in a separate project account | Promoter |
| 9, 10 | Agent registration, registration number, agent duties | Agent |
| 11 | Disclosures, advertisements, obligations until conveyance | Promoter |
| 13, 14 | 10% advance cap; sanctioned plans; 5-year defect liability | Promoter |
| 18 | Refund or monthly interest for delayed possession | Promoter |
| 19 | Buyer rights and duties, including timely payment | Allottee |
| 31, 44, 58 | Complaint, appeal to Tribunal, appeal to High Court | Everyone |
| 59 to 68 | Penalties for promoters, agents and allottees | Everyone |
| 71, 72 | Adjudicating Officer and compensation | Everyone |
| 84, 85 | State rules and Authority regulations | Each state |
Full form, dates and who runs the system.
RERA is short for the Real Estate (Regulation and Development) Act, 2016, Act No. 16 of 2016, the name given in Section 1(1). In everyday use the same letters also mean the Real Estate Regulatory Authority, the body each state and union territory sets up under Section 20. So "registered with RERA" means registered with that state's Authority under the 2016 Act. Background: What is RERA?
Strictly, RERA does not approve projects. The Authority registers them under Section 3 after the promoter files the documents listed in Section 4, and issues a registration number under Section 5. Registration means the project is on the public record and bound by the Act. It is not a quality certificate, and building plans are still sanctioned by the local planning body. More: RERA approved projects meaning.
The Act received Presidential assent on 25 March 2016. A notification of 26 April 2016 (S.O. 1544(E)) brought Sections 2, 20 to 39, 41 to 58, 71 to 78 and 81 to 92 into force on 1 May 2016: definitions, and the setting up of authorities and tribunals. The operative parts, Sections 3 to 19, 40, 59 to 70, 79 and 80, took effect on 1 May 2017.
Three bodies in each state or UT. The Real Estate Regulatory Authority (Section 20) registers projects and agents, runs the portal and hears complaints. The Adjudicating Officer (Section 71) decides compensation claims. The Real Estate Appellate Tribunal (Section 43) hears appeals against both. Because each state has its own set, the right portal depends on where the project is located, not where the buyer lives.
Section 2(k) defines carpet area as the net usable floor area of an apartment, excluding external walls, areas under service shafts, exclusive balcony or verandah area and exclusive open terrace area, but including internal partition walls. Section 4(2)(h) makes the promoter disclose the carpet area of each apartment at registration. If a quote mentions only "super area", ask for the carpet area. See carpet area under RERA.
Registration, escrow, advertising and what the builder owes.
Under Section 3(1), a promoter cannot advertise, market, book, sell or invite anyone to buy a plot, apartment or building in a real estate project, in any planning area, without first registering it with the state Authority. Projects that were ongoing when the Act commenced and had no completion certificate had to apply within three months. Check status before booking: how to check a builder's RERA registration.
Section 3(2) exempts (a) projects where the land does not exceed 500 sq m or the apartments do not exceed eight, counting all phases; (b) projects that received a completion certificate before the Act began; and (c) renovation, repair or redevelopment with no fresh marketing, selling or allotment. Authorities read the "or" in clause (a) differently and some states have lowered the limits, so check your state's current position. Detail: What is RERA?
Section 5 gives the Authority 30 days from receipt of the application to grant or reject registration, and it must hear the promoter before rejecting. If it does neither, the project is treated as registered and the Authority must issue a registration number and login details. Registration lasts for the completion period the promoter declared, and Section 6 allows an extension in limited cases such as force majeure.
Section 4(2)(l)(D) requires the promoter to deposit 70% of the money collected from allottees, or a lower percentage if the government notifies one, in a separate scheduled-bank account used only for that project's land and construction costs. Withdrawals must match the stage of completion, certified by an engineer, an architect and a practising chartered accountant, and the accounts are audited every year. Full guide: the 70% escrow rule.
No advertisement is allowed before registration (Section 3(1)). After registration, every advertisement or prospectus must show the Authority's website address where the project's registration details appear (Section 11(2)). A buyer who pays on the strength of a false advertisement and suffers loss can claim compensation, or withdraw and get a refund with interest (Section 12). Agents who repeat false claims risk breaching Section 10(c).
Section 11 requires the promoter to keep the project's page on the Authority's website current, with quarterly updates on bookings, approvals and construction status (11(1)); give allottees the sanctioned plans, layout and stage-wise schedule at booking (11(3)); stay responsible for every obligation in the agreement until conveyance (11(4)(a)); and execute a registered conveyance deed (11(4)(f)). Section 17 then deals with handing over title and common areas.
No. Section 13(1) bars a promoter from accepting more than 10% of the cost of the apartment, plot or building as an advance or application fee without first entering into a written agreement for sale and registering it. If a builder asks for 20% at booking against only an allotment letter, the buyer, and any agent advising them, should insist on the registered agreement first.
Under Section 14(3), if the buyer reports a structural defect, or any other defect in workmanship, quality or provision of services, within five years of the date of handing over possession, the promoter must fix it free of charge within 30 days. If the promoter fails, the buyer can claim appropriate compensation. Keep the possession letter safely, because the five years run from that date.
Section 14(1) requires the project to follow the sanctioned plans and specifications. Under Section 14(2), the promoter may make minor alterations, or changes an architect recommends for structural reasons, without consent. Changes to a specific apartment need the written consent of its buyer, and other changes to the building or common areas need the prior written consent of at least two-thirds of the allottees.
Section 7 lets the Authority revoke a project's registration for defaults such as breaching the Act or unfair practices, after at least 30 days' notice to the promoter. It can then debar the promoter, publish its name as a defaulter and direct the bank to freeze the project account. Under Section 8, the Authority, consulting the government, can have the remaining work completed by a competent authority or the allottees' association.
Delay, interest, rights, duties, complaints and appeals.
Section 18(1) gives the buyer a choice when the promoter fails to complete or hand over by the agreed date. The buyer can withdraw and get back everything paid, with interest at the prescribed rate, plus compensation. Or the buyer can stay in the project and receive interest for every month of delay until possession. Worked figures: possession delay compensation.
Section 2(za) defines interest as the rate payable by the promoter or the allottee, and says the rate a promoter charges a defaulting allottee must equal the rate the promoter pays when it defaults. The figure itself is set in state rules; most states use SBI's highest marginal cost of lending rate plus 2%. See interest on delayed payment by the buyer.
The allottee is entitled to information on the sanctioned plans, layout plans and specifications (19(1)); to know the stage-wise completion schedule, including water, sanitation and electricity (19(2)); to claim possession as declared by the promoter (19(3)); to a refund with interest and compensation if the promoter fails to deliver (19(4)); and to the necessary documents and plans after possession (19(5)).
Under Section 19(6), an allottee must make payments in the manner and within the time the agreement specifies, and pay their share of registration charges, municipal taxes, water and electricity charges, maintenance and ground rent. Section 19(7) makes the allottee liable to pay interest at the prescribed rate on any delay. Section 19(8) allows both obligations to be reduced by mutual agreement with the promoter.
Section 19(10) requires the allottee to take physical possession within two months of the occupancy certificate being issued. Section 19(9) requires the allottee to take part in forming the association or society of allottees, and Section 19(11) to take part in registering the conveyance deed. A buyer who sits on the keys can face maintenance charges and disputes under the agreement, so a good agent flags the two-month window as soon as the occupancy certificate arrives.
Section 31 lets any aggrieved person file a complaint with the Authority or the Adjudicating Officer against a promoter, allottee or real estate agent for any violation of the Act, rules or regulations. Most states take complaints online through their portal, with a prescribed form and fee. Attach the agreement, payment receipts and correspondence, and state exactly what relief you want. Steps: RERA complaint process.
In Newtech Promoters and Developers v State of UP (2021), the Supreme Court held that the Authority decides refunds, interest on refunds, interest for delayed possession and penalties. The Adjudicating Officer alone decides compensation, and interest on it, under Sections 12, 14, 18 and 19, applying the Section 72 factors. Many states use separate forms for the two routes, commonly Form M and Form N.
Section 29(4) requires the Authority to deal with matters as expeditiously as possible and dispose of them within 60 days of receipt, recording reasons if it cannot. Section 71(2) sets the same 60-day target for the Adjudicating Officer. In practice, timelines vary with each state's case load, so treat 60 days as the statutory target rather than a promise.
Yes. Under Section 44, any person aggrieved by an order of the Authority or Adjudicating Officer can appeal to the Appellate Tribunal within 60 days of receiving it; late appeals can be admitted for sufficient cause. A promoter must first deposit at least 30% of the penalty, or the full amount payable to the allottee (Section 43(5)). Section 58 allows a further appeal to the High Court within 60 days.
Section 79 bars civil courts from matters that RERA bodies can decide, but Section 88 says the Act applies in addition to other laws. In Imperia Structures v Anil Patni (2020), the Supreme Court held that a buyer can still approach a consumer commission. The buyer chooses the forum, but should not run the same claim in both. Compare: RERA vs consumer court.
Section 40(1) lets unpaid interest, penalty or compensation be recovered from the promoter, allottee or agent as arrears of land revenue, usually through the district revenue authorities. Under Section 40(2), other orders are enforced in the manner the state rules prescribe. Refusing to comply also attracts separate daily penalties, covered in the Penalties group below.
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Take the free mock test →Who counts, registration, validity, duties and the Section 62 penalty.
Section 2(zm) covers any person who negotiates or acts on behalf of one person in a transfer of a plot, apartment or building in a real estate project, by sale or otherwise, and receives remuneration, fees, commission or other charges. It includes property dealers, brokers and middlemen by whatever name called. The activity decides it, not the title. See RERA agent vs broker.
Yes, to work on registered projects. Section 9(1) says no real estate agent shall facilitate the sale or purchase of, or act on behalf of anyone in, any plot, apartment or building in a project registered under Section 3 without first registering with the Authority. Registration is state by state, so an agent working across a border needs each state's registration. Steps: how to become a real estate agent in India.
A registered firm's registration covers sales the firm facilitates in its own name through its staff, and the firm answers for those staff under Section 10. Anyone who facilitates a sale in their own name needs their own registration. Some states add per-person rules: Maharashtra's Certificate of Competency and Uttar Pradesh's training order apply to individuals working inside firms too. See MahaRERA CoC.
Under Section 9(3), the Authority must grant or reject an application within the period the state rules prescribe, commonly 30 days, and must hear the applicant and record reasons before rejecting. If it neither points out deficiencies nor rejects within that period, Section 9(4) treats the agent as registered. A complete, legible application is the fastest route. State fees: RERA agent fees by state.
The Act does not fix a period. Section 9(6) says registration is valid for the period the state rules prescribe and can be renewed in the prescribed manner on paying the fee. Most states set five years; Uttar Pradesh moved to ten years in 2026, and Odisha's rules show conflicting figures. Many states expect renewal at least three months before expiry. See agent registration renewal.
Section 9(5) says the Authority grants every registered agent a single registration number, "which shall be quoted by the real estate agent in every sale facilitated by him". Several state authorities have also issued orders on showing the number in advertisements, so check your state's current orders. Buyers can verify the number on the portal before paying a token: how to verify a RERA agent.
A registered agent must (a) not facilitate any sale in a project that should be registered but is not; (b) maintain and preserve books of account, records and documents; (c) not indulge in unfair trade practices, such as false statements about a unit's standard, quality or approvals; (d) help the allottee obtain the information and documents they are entitled to; and (e) perform any other prescribed functions.
Section 62 imposes a penalty of ₹10,000 for every day the default continues, which can add up to 5% of the cost of the plot, apartment or building whose sale or purchase was facilitated. Separately, Section 9(7) lets the Authority suspend or revoke an agent's registration for breach of its conditions, misrepresentation or fraud, after a hearing. Common slips: RERA agent violations.
Who pays what, and the 2026 change to Section 68.
Section 59(1) allows a penalty of up to 10% of the estimated project cost for a promoter who fails to register under Section 3. If the promoter keeps violating the Authority's orders, Section 59(2) allows imprisonment of up to three years, a further fine of up to 10% of the estimated project cost, or both. An agent who sells in such a project also breaches Section 10(a).
False information or breach of Section 4 at registration: up to 5% of the estimated project cost (Section 60). Breach of any other provision, rule or regulation: up to 5% (Section 61). Ignoring the Authority's orders: a daily penalty adding up to 5% (Section 63). Ignoring the Appellate Tribunal's orders: up to three years' imprisonment, a daily fine adding up to 10%, or both (Section 64).
An agent who fails to comply with the Authority's orders faces a penalty for every day of default, which can add up to 5% of the cost of the plot, apartment or building concerned (Section 65). Ignoring an Appellate Tribunal order is more serious: up to one year's imprisonment, a daily fine adding up to 10% of that cost, or both (Section 66).
Yes, buyers can be penalised. An allottee who fails to comply with the Authority's orders faces a daily penalty adding up to 5% of the unit cost (Section 67). Section 68, for ignoring an Appellate Tribunal order, originally allowed imprisonment. The Jan Vishwas (Amendment of Provisions) Act, 2026, effective 7 May 2026, removed jail and kept a penalty of up to 10% of the unit cost. See RERA 2026 key changes.
One Act, many rulebooks.
Yes on both counts. A "real estate project" under Section 2(zn) covers developing buildings, apartments or plots for sale, and Section 2(e) includes offices, shops and other business premises in "apartment", so commercial units are covered. The Act applies across the states and union territories, each through its own Authority. Pick your state for local rules: state tracks.
Parliament wrote one Act, but Section 84 lets each appropriate government make rules and Section 85 lets each Authority make regulations. These set fees, forms, interest rates, agent validity and training. That is why Maharashtra requires a Certificate of Competency, Uttar Pradesh a four-day training, and individual agent fees run from ₹5,000 to ₹25,000 in most states. See fees by state.
RERACertified™ Pro covers every section behind these 40 answers, plus your state's rules, so you can explain the law clearly and stay on the right side of it.
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