What RERA is
RERA is the Real Estate (Regulation and Development) Act, 2016. It came fully into force on 1 May 2017. Its purpose is simple: make builders tell buyers the truth about a project, and give buyers a quick place to complain when promises are broken.
Every state and union territory has its own RERA authority and its own rules (forms, fees, interest rate, model agreement). The Act is the same everywhere; the details change by state. That is why this course has a national core and state add-ons.
Which projects must be registered
Under Section 3, a builder (the Act calls them the "promoter") cannot advertise, market, book or sell a project until it is registered with the state RERA authority. The main exceptions are small projects:
- land of 500 square metres or less, or
- 8 apartments or fewer, counting all phases.
Some states set a lower limit, so smaller projects there must register too. Projects that already had a completion certificate before the Act began are also outside it.
What the builder must do under RERA
- Put the RERA number and the authority's website on every advertisement (Section 11(2)).
- Upload project details on the RERA website: approvals, plans, number of units booked, and progress every quarter (Section 11(1)).
- Take no more than 10% of the price before a registered agreement for sale (Section 13). Module 4 covers this.
- Keep 70% of the money collected from buyers in a separate bank account for that project (Section 4(2)(l)(D)). Module 6 covers this.
- Hand over on the promised date, or pay interest for the delay or refund you (Section 18). Module 7 covers this.
- Fix structural and workmanship defects reported within 5 years of possession (Section 14(3)).
Your duties as a buyer
RERA also gives the buyer (the Act says "allottee") duties under Section 19: pay on time as per the agreement, pay your share of registration and maintenance charges, and take possession within 2 months of the occupancy certificate being issued. If you pay late, the builder can charge you interest at the same rate it would pay you for delay.
Where you can go if something goes wrong
- The state RERA authority for refunds, interest for delay and breaches of the Act (Section 31). Module 8 shows you how.
- The adjudicating officer at the same authority for compensation (Section 71).
- The Real Estate Appellate Tribunal if you disagree with the order (appeal within 60 days, Section 44).
- You can also use a consumer commission. The Supreme Court (Imperia Structures v. Anil Patni, 2020) said RERA does not take away that right. Pick one route for the same complaint, not both at once.
What RERA does not cover well
- A resale between two private people of a finished flat is mostly a normal property deal, not a RERA matter. You still need title checks.
- Problems from a project that was never registered can still go to RERA (selling without registration is itself a violation), but recovery is harder. Prevention is better.