In One Sentence
RERA — the Real Estate (Regulation and Development) Act, 2016 — is a central law that requires every real estate project and every real estate agent to register with a state regulatory authority, follow transparent disclosure and escrow rules, and be held accountable for delays, misrepresentation, or non-compliance.
Why RERA Was Created
Before 2016, Indian real estate had no dedicated regulator. Buyers routinely faced delayed possession with no recourse, developers diverted funds from one project to another, and there was no standard definition of what "area" actually meant on a brochure. The RERA Act, passed by Parliament in 2016 and brought into force from May 2017, was designed to fix exactly these three problems: accountability, fund utilisation, and transparency.
RERA is a central act, but real estate is a state subject — so each state and union territory set up its own Real Estate Regulatory Authority (e.g. MahaRERA in Maharashtra, HRERA in Haryana, RERA Punjab) to implement it. The core rules are consistent nationally; some procedural details (fees, portal design, bench structure) vary by state.
What RERA Actually Requires
Project registration
Any project over 500 sq m of land or more than 8 apartments must register with the state RERA before any marketing, booking, or sale begins.
70% escrow rule
70% of the money collected from buyers must be deposited in a separate escrow account, used only for that project's construction and land cost — not diverted elsewhere.
Carpet area pricing
All pricing and agreements must be based on carpet area (Section 2(k)) — not built-up or super built-up area — ending the practice of inflating quoted sizes.
Agent registration
Anyone who facilitates a transaction for commission — individual or firm — must be a registered RERA agent before doing so.
What RERA Protects Buyers From
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Indefinite delays:
Section 18 entitles buyers to withdraw with full refund + interest, or stay and receive monthly interest until possession, if the promoter misses the committed date.
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Misleading area figures:
Carpet-area-only pricing means the size you're quoted is the size you actually get.
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Fund diversion:
The 70% escrow rule stops promoters from using one project's collections to fund another, unrelated project.
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Unregistered agents:
Buyers can verify any agent's registration and complaint history on the state RERA portal before trusting their advice.
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Structural defects:
Section 14 makes the promoter liable to rectify structural defects reported within 5 years of possession, at no cost to the buyer.
What RERA Requires From Agents
If you facilitate real estate transactions for compensation, RERA treats you as a regulated professional, not an unregulated middleman. That means:
Sec 9
Register with the state RERA before facilitating any transaction
Sec 10
Don't facilitate sale/purchase of a project that is not itself RERA-registered (where registration is required)
Sec 10
Maintain and produce all documents related to a transaction when required by the authority
Sec 11(5)
Ensure buyers are shown the correct, RERA-approved sale agreement — not an unofficial version
Sec 62
Face a penalty of up to ₹10,000 per day of violation, up to 5% of the property cost, for non-compliance
How to Check If a Project or Agent is RERA-Registered
1
Go to the state RERA portal
Each state has its own — e.g. maharera.maharashtra.gov.in, hrera.org.in, rera.punjab.gov.in. There is no single national search portal.
2
Search by project or agent name
Every portal lets you search registered projects and registered agents. An unregistered result, or no result, is a red flag.
3
Verify the registration number format
Each state has its own registration number format — cross-check it matches what's on the brochure or the agent's card.
4
Check registration validity dates
A registration can lapse or be revoked — an old, expired registration number is as good as none.
Frequently Asked Questions
What is the full form of RERA?
RERA stands for Real Estate (Regulation and Development) Act, 2016 — a central law implemented by each state through its own Real Estate Regulatory Authority.
Is RERA registration mandatory for all real estate projects?
It is mandatory for projects over 500 sq m of land or more than 8 apartments. Smaller projects are generally exempt, subject to state-specific rules.
Is RERA registration mandatory for real estate agents?
Yes — under Section 9, anyone facilitating a property transaction for commission must register as a RERA agent first.
What happens if a promoter sells without RERA registration?
It is a violation under Section 59, carrying a penalty of up to 10% of the project cost and, for continued violation, imprisonment of up to three years.
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