What is RERA? Rules, Benefits & More

The Indian real estate sector has long been plagued with delays, a lack of transparency, and legal disputes. To address these concerns and restore homebuyer confidence, the Government of India introduced the Real Estate (Regulation and Development) Act, 2016, commonly known as RERA. But what is RERA, exactly, and how does it benefit both developers and homebuyers?

In this guide, we break down RERA rules, benefits, registration fees, penalties, and the states where it is enforced. If you're a buyer, seller, or developer, this article will help you understand why RERA compliance is crucial in the modern real estate ecosystem.

What is RERA?

The RERA Act in India stands for Real Estate Regulatory Authority, a landmark reform aimed at regulating the real estate industry and protecting consumer interests. This legislation mandates registration of real estate projects and agents, ensures the timely delivery of properties, and promotes transparency in transactions.

Key Objectives of the RERA Act:

• Promote fair practices in the real estate sector

• Protect consumer interests

• Increase transparency in project approvals and execution

• Establish a fast-track dispute resolution system

Since its implementation, RERA in India has significantly transformed the real estate landscape, promoting fair practices and rebuilding trust between developers and buyers.

RERA Registration Fees Structure

The RERA registration fee structure varies from state to state and depends on the type and size of the real estate project. However, the general framework is as follows:

Project Registration Fees:

• Residential Projects:

  ₹5 to ₹20 per square meter, depending on the size of the plot

• Commercial Projects:

  ₹20 to ₹25 per square meter, also depending on the project size.

• Mixed Development:

  ₹10 to ₹15 per sq. m, depending on project specifications and applicable guidelines.

Real Estate Agents

• Individual: ₹10,000–₹25,000

• Firms/Companies: ₹50,000–₹2,00,000

Additional Fees

• Appeals: ₹1,000

• Complaints: ₹1,000

• Withdrawal of Application: ₹50,000 or 10% of the registration fee, whichever is higher

Developers need to note that failure to register a project under RERA can result in significant penalties, including imprisonment.

RERA Rules and Regulations

Understanding the key rules under RERA helps all stakeholders, especially homebuyers, make informed and confident real estate decisions.

1. RERA Registration Requirements

All residential and commercial real estate projects over a certain threshold must register under RERA before launching. Promoters must disclose detailed project plans, timelines, land status, and financial statements.

2. Timeline and Delivery Rules

One of RERA’s strongest provisions is enforcing delivery deadlines. Developers must deliver the property by the promised possession date or face financial penalties.

3. Penalties for Non-Compliance

Developers and agents who fail to comply with RERA’s rules face hefty penalties, sometimes up to 10% of the project cost or imprisonment for severe violations. These penalties under the RERA Act ensure accountability.

4. Rights and Duties of Homebuyers

Buyers now have the right to:

• Receive accurate project information

• Claim compensation for delays

• Exit the project under specified conditions

• File complaints through the RERA authority

Main Features of RERA

The RERA law includes several game-changing features that have redefined real estate transactions in India.

1. Mandatory Project Registration

All ongoing and new projects over 500 sq. meters or involving more than eight apartments must be registered under RERA.

2. Escrow Mechanism

Developers must deposit 70% of project funds into a dedicated bank account. This prevents the diversion of buyer funds to other projects.

3. Clear Definition of Carpet Area

RERA standardizes the definition of carpet area, removing ambiguity in pricing and floor plan disclosures.

4. Advance Cap

Builders cannot demand more than 10% of the property cost as an advance before signing the sale agreement.

5. Grievance Redressal

Both buyers and developers can file complaints with the authority. RERA mandates resolution within 60 days, promoting quick action.

RERA Registration Process

The RERA registration process involves a few key steps, whether you're a developer, real estate agent, or project manager:

Step 1: Visit the State RERA Website

Each state has its own RERA portal. Navigate to the website for your state.

Step 2: Fill in the Application Form

Provide detailed information about the project or business, including:

• Project name and promoter details

• Land title and ownership documents

• Approved building plans

• Estimated completion timeline

Step 3: Submit Required Documents

Along with the form, upload documents like:

• PAN card

• Income tax returns

• Legal title deeds

• Development agreement (if applicable)

Step 4: Pay the Registration Fees

Make the payment according to your project type and size.

Step 5: Receive RERA Registration Number

Once approved, you’ll get a unique RERA registration number, which must be displayed in all project advertisements.

Penalties and Charges Under the RERA Act

The RERA Act in India imposes strict penalties for non-compliance:

• For Developers:

  • Up to 10% of the estimated project cost for failing to register

  • 5% of the cost for false information

  • Imprisonment up to 3 years for continuous violations

• For Real Estate Agents:

  • Penalties for operating without registration

  • Fines for misrepresentation or fraudulent transactions

• For Homebuyers (in rare cases):

  • Buyers must adhere to contractual obligations, including payments; failing to do so may attract minor penalties or legal action.

These penalties ensure that developers, agents, and even buyers operate within a legally binding and ethical framework.

List of States That Have Enforced the RERA Act

As of 2025, the RERA Act has been notified and implemented in most Indian states and union territories. Here is a list of key regions where RERA is active:

• Maharashtra - https://maharera.mahaonline.gov.in

• Delhi - https://rera.delhi.gov.in

• Karnataka - https://rera.karnataka.gov.in

• Tamil Nadu - https://www.tnrera.in

• Andhra Pradesh - https://www.rera.ap.gov.in

• Gujarat - https://gujrera.gujarat.gov.in

• West Bengal - https://rera.wb.gov.in/

Each of these portals allows buyers and developers to verify RERA property registrations, lodge complaints, and track project statuses.

Conclusion

So, what is RERA? It’s more than just a law, it’s an important move towards bringing honesty and responsibility to the real estate sector in India. RERA helps protect homebuyers by making sure builders are clear, fair with pricing and deliver projects on time.

Whether you're buying a home or building one, following RERA rules is a must. At Arbor Realty, we make sure all our properties follow RERA guidelines, so you can feel confident and safe throughout your real estate journey.

Frequently Asked Questions

Q1. What is the full form of RERA?

A: RERA stands for Real Estate Regulatory Authority. It is a government organization set up under the Real Estate Act of 2016 to improve and manage the real estate sector in India.

Q2. Who needs to register under RERA?

A: All real estate developers and agents handling projects above the minimum threshold must register.

Q3. What happens if a project is not RERA-registered?

A: Developers cannot advertise, market, or sell the project. Penalties and even imprisonment may apply.

Q4. How do I verify if a property is RERA-compliant?

A: You can verify if a property is RERA-compliant by visiting the official RERA website of the respective state and searching for the project using its name or registration number.

Q5. What is a RERA number?

A: It’s a unique identification number issued to registered projects as proof of legal compliance.