🏠 Real Estate Law Last updated: March 2026

RERA — Real Estate (Regulation & Development) Act, 2016

Complete guide to RERA — home buyer rights, builder obligations, project registration, carpet area rules, delays & compensation, complaint process, and state-wise RERA portals.

🏛️ Background

The Real Estate (Regulation and Development) Act, 2016 received Presidential assent on 25 March 2016 and came fully into force on 1 May 2017. It was enacted to protect home buyers from unscrupulous builders, bring transparency to real estate transactions, and establish fast-track dispute resolution through Real Estate Regulatory Authorities (RERAs) set up in each state/UT. Before RERA, buyers had virtually no recourse against delayed/fraudulent projects.

🛡️ Home Buyer Rights under RERA

📏 Carpet Area Based Pricing

Builders must sell on carpet area basis only (net usable floor area within walls). No more super built-up or loading confusion. Carpet area explicitly defined in RERA.

⏰ Possession Timeline

Builder must deliver as per registered agreement date. If delayed: buyer can withdraw + full refund with interest (SBI MCLR + 2%), or stay and get interest on amount paid till possession.

🔧 5-Year Structural Warranty

Builder must fix any structural defects or quality issues within 5 years of possession at own cost — within 30 days of complaint. Covers structural defects, workmanship, and services quality.

💰 70% Escrow Mandate

Builder must deposit 70% of buyer payments in a separate escrow account. Withdrawal only for construction costs of that project (certified by engineer, CA, and architect).

📋 Builder Obligations

  • 📌 Registration: Every project with plot >500 sq.m. OR >8 apartments must be registered with State RERA before advertising or selling
  • 📌 Disclosure: Full project details on RERA website — layout plan, approvals, timeline, status, CA-certified accounts, litigations
  • 📌 No plan change: Cannot change sanctioned plans or common area specifications without 2/3rd allottees' consent
  • 📌 Title: Builder must have clear legal title and disclose encumbrances. Must provide title insurance if available.
  • 📌 Penalty: ₹Up to 10% of project cost for non-registration. Imprisonment up to 3 years for continued violation.

📱 How to File a RERA Complaint

1
Visit State RERA Portal — Find your project's RERA registration number from the agreement or builder's website.
2
Register & File Complaint — Submit Form A with project details, builder info, complaint description, and supporting documents. Fee: ₹1,000–₹5,000 (varies by state).
3
Hearing — RERA officer will schedule hearing. Both parties present their case. Usually resolved in 60 days.
4
Appeal — If unsatisfied, appeal to Real Estate Appellate Tribunal within 60 days. Further appeal to High Court.

⚠️ Disclaimer

This page is for educational and informational purposes only and does not constitute legal, tax, or financial advice. While we strive for 100% accuracy, laws and regulations change frequently. Always refer to the official gazette notifications, consult a qualified Chartered Accountant (CA), Company Secretary (CS), or legal professional before making any financial or legal decisions. Tenhash is not responsible for any actions taken based on this information. Last reviewed: March 2026.

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