RERA stands for Real Estate Regulatory Authority, established under the RERA Act, which was passed by the Government of India in May 2016. This act aims to bring transparency and accountability to the real estate sector by regulating builders, developers, and real estate agents.
The RERA Act is implemented at the state level, with each state having its own RERA authority, such as:
• RERA Maharashtra (maharerait.mahaonline.gov.in)
• RERA Delhi (rera.delhi.gov.in)
• RERA Uttar Pradesh (up-rera.in)
• Buyers can track project status and match it with the given timelines.
• Payment is required only for carpet area, not for common spaces like lobbies, lifts, etc.
• Builders cannot collect more than 10% advance from buyers.
• Timely project completion is mandated, with penalties for delays.
• Developers must deposit 70% of collected funds into an escrow account for construction use only.
• Disputes must be resolved within 120 days of filing.
• Buyers can claim compensation for discrepancies in the title deed.
• Obligations for Developers and Agents
• Builders must disclose project details and progress on the RERA portal.
• Projects exceeding 500 sq. meters or having more than 8 apartments must register under RERA.
• Developers are legally bound to complete projects within stipulated timelines.
• 70% of buyer funds must be deposited in a separate escrow account.
• Developers are prohibited from money laundering or fraudulent activities.
There are two categories of RERA registration:
a. Registration of Projects
b. Registration of Agents
• Details of the promoter (individual or entity)
• PAN and Aadhaar of individual promoters, partners, or directors.
• Project development plan and layout.
• Income Tax Return and audited financial statements for the past 3 years.
• Title deed and Chain of title documents.
• Architect and engineer details related to the project.
• Name, address, contact details, and photograph of the agent.
• PAN and Aadhaar copies.
• Adress proof of the agent.
a. Visit the respective state RERA portal.
b. Select project or agent registration as applicable.
c. Fill in the required details and upload documents.
d. Pay the applicable registration fee.
e. Submit the application and track its status online.
• Developers must regularly update project progress on the RERA portal.
• Any modifications in the project require prior approval.
• Mandatory adherence to the completion timeline.
• Developers must resolve buyer complaints within 120 days.
• Strict penalties are imposed for violations.
| Violation | Penalty |
|---|---|
| Non-registration under RERA | Up to 10% of project cost |
| Providing false information | 5% of project cost |
| Delay in project completion | Interest penalty to buyers |
| Breach of RERA regulations | Jail term up to 3 years or fine |
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