RERA Act – Real Estate (Regulation and Development) Act, 2016

The Real Estate (Regulation and Development) Act, 2016 - RERA is an Indian law designed to regulate the real estate sector, boost transparency, and protect homebuyers. It mandates the registration of residential and commercial projects (above 500 sqm or 8 units) with a state-level authority (RERA) to ensure timely delivery and accountability.

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What is the RERA Act, 2016?

The full form of RERA is the Real Estate Regulatory Authority. The Real Estate (Regulation and Development) Act, 2016 (RERA) is a central law passed to regulate the real estate sector. While enacted at the national level, it is implemented through state-specific RERA authorities.

The Act was passed in 2016, with most provisions coming fully into force on 1 May 2017. It applies to most new and ongoing projects meeting the registration threshold and requires developers to register projects before advertising or selling them.

In simple words, RERA meaning in Real Estate, is the body established under the Real Estate Regulation Act to regulate the sector and resolve disputes.

RERA Act 2016 helps ensure:

Greater transparency in property transactions
Timely project completion
Protection against unfair builder practices
Standardized property disclosures
Faster dispute resolution

While securing your property ownership through verified land records, it is equally important to protect your family’s future with a term insurance plan.

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How Does the RERA Act 2016 Benefit Homebuyers?

RERA’s real impact is best understood from a buyer’s perspective. It does not just introduce rules, it changes the experience of buying property.

Access to verified information: Buyers can check project details, approvals, and timelines on official portals before making a commitment.
Reduced risk of delays: Developers are financially and legally bound to adhere to declared timelines.
Protection against unexpected changes: Major alterations to project plans cannot be made without buyer consent.
Clear pricing structure: Standard carpet area definitions reduce ambiguity and hidden costs.
Stronger legal backing: Buyers have a direct mechanism to raise complaints and seek resolution.

Together, these changes shift the process from uncertainty to informed decision-making.

Property investment is a major financial step, and complementing it with a life insurance plan can help ensure long-term financial stability.

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Key Features of the Real Estate Regulation Act

Mandatory Project Registration

Eligible real estate projects (generally over 500 sq. meters or more than 8 apartments, subject to rules) must be registered under RERA before sale or promotion.

Registration of Real Estate Agents

Real estate agents also need registration to operate legally under RERA.

Standard Definition of Carpet Area

A major reform under the RERA Act 2016 is standardizing carpet area, reducing ambiguity around super built-up calculations.

70:30 Rule

Under the 70-30 rule, 70% of buyer funds collected must be kept in a dedicated account for land and construction costs.

Timely Possession Rules

Builders are required to adhere to declared timelines or face consequences.

Five-Year Defect Liability

Promoters can be liable for structural defects identified within five years of possession.

Impact of Real Estate Regulation Act on the Real Estate Sector

RERA has led to a noticeable shift in how the industry operates. Developers are now more cautious in planning projects, aligning timelines more realistically, and maintaining financial discipline.

This has resulted in:

Area	Before RERA	After RERA
Project timelines	Frequently delayed	More structured and monitored
Information access	Limited and unclear	Publicly available and verified
Fund usage	Often diverted	Strictly regulated
Buyer confidence	Low to moderate	Significantly improved

At the same time, compliance requirements have increased, requiring developers to follow stricter processes and documentation standards. While this adds effort on their side, it has contributed to a more organised and trustworthy market overall.

Before purchasing a RERA-approved property, you can use an EMI calculator to estimate your home loan monthly repayments.

What You Should Check as a Buyer?

Even with RERA in place, informed decision-making remains important. Before finalising a property, it is advisable to verify key details rather than relying solely on sales communication.

You should always:

Check the project’s RERA registration number
Review declared timelines and construction status
Verify approvals and land ownership details
Assess the developer’s past track record
Look into any complaints filed against the project

These steps ensure that you are fully using the protections offered by RERA.

How to Check If a Project is RERA Registered?

Before buying any property:

Step 1: Visit your state’s RERA website

Step 2: Search by project name or developer name

Step 3: Verify the RERA registration number

Step 4: Check approvals, timelines, and status

Step 5: Review complaints or project updates if available

List of States Enforcing the RERA Act 2016

State / Union Territory	Official RERA Website
Bihar	rera[dot]bihar[dot]gov[dot]in
Telangana	rera[dot]telangana[dot]gov[dot]in
Punjab	rera[dot]punjab[dot]gov[dot]in
Madhya Pradesh	www[dot]rera[dot]mp[dot]gov[dot]in
Haryana	haryanarera[dot]gov[dot]in
Uttar Pradesh	www[dot]up-rera[dot]in
Tamil Nadu	rera[dot]tn[dot]gov[dot]in
Gujarat	gujrera[dot]gujarat[dot]gov[dot]in
Rajasthan	rera[dot]rajasthan[dot]gov[dot]in
Himachal Pradesh	www[dot]hprera[dot]in
Chhattisgarh	rera[dot]cgstate[dot]gov[dot]in
Karnataka	rera[dot]karnataka[dot]gov[dot]in
Uttarakhand	uhuda[dot]org[dot]in
Jharkhand	jharera[dot]jharkhand[dot]gov[dot]in
Odisha	www[dot]urbanodisha[dot]gov[dot]in/ActsRules[dot]aspx
Andhra Pradesh	rera[dot]ap[dot]gov[dot]in/RERA/Views/Home[dot]aspx
Maharashtra	maharera[dot]mahaonline[dot]gov[dot]in
Delhi	rera[dot]delhi[dot]gov[dot]in
Lakshadweep	-
Andaman & Nicobar Islands	-
Dadra & Nagar Haveli	-
Chandigarh	rera[dot]chbonline[dot]in

Documents Required to Register a Project Under RERA

Document Category	Details / Description
Project Details	Project name, address, location details; details of promoter/developer (name, address, contact).
Property Details	Property title deed and ownership documents; layout plan and site plan; approved building plan and layout by competent authority.
Financial Information	Audited balance sheets and profit & loss statements of promoter for past 3 years; details of funds available for project completion.
Legal and Regulatory Compliance	Copies of approvals, clearances, and NOCs from relevant authorities; encumbrance certificate showing property is free from legal liabilities.
Schedule of Completion	Proposed schedule for project completion, including possession dates for each phase.
Carpet Area Details	Declaration of carpet area of each apartment/flat and common areas.
Agreement for Sale	Sample copy of agreement for sale, including all terms and conditions offered to buyers.
Project Cost and Financing	Breakup of total project cost (land, construction, other expenses); details of financing sources (loans, equity).
Bank Account Details	Details of separate bank account for project funds.
Promoter’s PAN & Aadhaar	Copies of promoter’s PAN card and Aadhaar card.
Promoter’s Photograph	Passport-sized photograph of the promoter.
Other Documents	Any other documents or information required by the state’s RERA authority.

Wrapping it Up!

The Real Estate (Regulation and Development) Act, 2016, has brought much-needed structure to the Indian real estate sector. By introducing transparency, financial discipline, and a clear legal framework, it has made property transactions more reliable for buyers.

For anyone planning to invest in property, understanding RERA is essential. It not only helps you evaluate projects more effectively but also ensures that your investment is backed by defined rights and protections.

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FAQ's

Q. What is the RERA Act in India?

The Real Estate (Regulation and Development) Act, 2016 is a law that regulates the real estate sector, protects homebuyers, and ensures transparency and accountability in property transactions.
Q. What is Section 47 of RERA?

Section 47 of RERA outlines the powers of the Real Estate Appellate Tribunal, including how appeals are handled and decisions are enforced.
Q. What is the rule of 70% and 30% in RERA?

Under RERA, builders must deposit at least 70 percent of the funds collected from buyers into a separate escrow account, which can only be used for construction and land costs. The remaining 30 percent can be used for other expenses.
Q. What are the penalties under RERA?

Penalties under RERA can include fines up to 10 percent of the project cost and, in some cases, imprisonment for serious violations such as non-registration or misleading information.
Q. How do I file a complaint against a builder in RERA?

You can file a complaint by visiting your state’s RERA website, filling out the complaint form, submitting relevant documents, and paying the prescribed fee.
Q. How to register projects under RERA?

Builders must register their projects on the state RERA portal by submitting project details, approvals, timelines, and necessary documents before advertising or selling the property.

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˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

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Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited

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