RERA Explained: A Homebuyer's Guide to Your Rights

Buying a home off-plan used to mean trusting a brochure and hoping the building showed up on time. The Real Estate (Regulation and Development) Act, 2016, known as RERA, changed that. It gives buyers enforceable rights, makes developers publish their project details, and sets up a regulator in every state to hear complaints.

This guide covers what RERA actually requires, how to check a project before you pay anything, and what to do if a developer does not keep its promises.

What RERA is, in one paragraph

RERA is a central law that came fully into force on 1 May 2017. Each state runs its own authority and website under it. In Haryana there are two, one for Gurugram and one for Panchkula, both on haryanarera.gov.in. Maharashtra has MahaRERA, Karnataka has K-RERA, Uttar Pradesh has UP RERA, and so on. The rules are broadly the same everywhere, though states can add to them.

Which projects must be registered

A project has to be registered with the state authority before it can be advertised, marketed or sold if:

• the land being developed is larger than 500 square metres, or
• it has more than eight apartments across all phases.

Some states have lower thresholds. Each registered project gets a RERA number, which has to appear on every advertisement and brochure. Property agents who sell registered projects must be registered too, and they have their own RERA numbers.

If a developer is taking bookings for a project of this size without a RERA number, treat it as a red flag.

The protections that matter most to buyers

Your money goes into construction

Developers must put 70% of the money collected from buyers into a separate bank account for that project. They can only withdraw it to pay for land and construction, in proportion to the work completed, with sign-off from an engineer, an architect and a chartered accountant. This makes it much harder to move buyers' money into another project.

You pay for carpet area

RERA defines carpet area as the net usable floor area of the apartment. It includes internal partition walls but excludes external walls, service shafts, exclusive balconies and open terraces. Developers have to state unit sizes in carpet area, so you can compare one project with another on the same basis instead of on inflated "super area" figures.

No more than 10% before an agreement

A developer cannot take more than 10% of the price as an advance or application fee until a written agreement for sale has been signed and registered. The agreement has to follow the format prescribed in your state's RERA rules.

What you were promised is what you get

Sanctioned plans, layouts and specifications cannot be changed for your unit without your consent. Major changes to the building or common areas need the written consent of at least two-thirds of the buyers.

Compensation for delay

Every registered project declares a completion date. If the developer misses it, you can choose to:

• withdraw and get your money back with interest, plus compensation, or
• stay in the project and be paid interest for every month of delay until you get possession.

Five years of cover for structural defects

If you find a structural defect, or a problem with workmanship, quality or services, within five years of taking possession, the developer must fix it at no cost within 30 days of being told.

How to check a project in ten minutes

Before you pay a booking amount, open the state RERA website and search for the project by its RERA number or name. Look at:

1. Registration status and validity. Is the registration current, or has it lapsed or been extended?
2. The declared completion date. Does it match what the sales team is telling you?
3. Approvals. The sanctioned building plan, land title documents and any environmental clearance should be uploaded.
4. Quarterly progress updates. Developers have to report construction progress every quarter. Missing or thin updates are a warning sign.
5. Complaints and orders. Many state portals list complaints filed against a project or developer.
6. The promoter's other projects. A developer with a string of delayed projects is likely to be late again.

You can see the RERA numbers of listings on our site on the RERA register page, and every project page shows its registration where one exists. Always confirm it on the official portal as well.

What to do if something goes wrong

Start with a written complaint to the developer and keep copies of everything: the agreement, payment receipts, emails and brochures. If that does not resolve it, you can file a complaint with your state RERA authority online. Complaints about compensation go to the authority's adjudicating officer. You do not need a lawyer to file, although one helps in complicated cases.

An order from the authority can be appealed to the state's Real Estate Appellate Tribunal.

What RERA does not cover

• Resale homes in completed buildings. The protections apply to the developer's sale, not to a sale between two owners.
• Small projects below the registration threshold.
• Rentals. Tenancy is covered by separate state laws.

For these, the usual checks still matter: title documents, encumbrance certificate, approved plans, occupancy certificate and society dues.

A short checklist before you book

• The project and the agent both have RERA numbers, and both check out on the state portal.
• The price is quoted on carpet area.
• You are paying no more than 10% before a registered agreement.
• The completion date in the agreement matches the one on the portal.
• You have read the latest quarterly progress update.

If you would like help checking a project, talk to our team. You can also browse RERA-registered projects on Golden Keys India.