RERA LIVE

RERA Real Estate Regulatory Authority: Complete Guide for Home Buyers and Builders

Comprehensive guide to RERA 2016 for home buyers and builders. Covers registration requirements, builder obligations, buyer rights, RERA complaints, compensation, and state impleme...

TaxClue Team Tax & Compliance Expert

May 13, 2026 2 min read 6 views Updated Jun 23, 2026

Expert Reviewed High Complexity

0:00

The Real Estate (Regulation and Development) Act 2016 (RERA) was a landmark reform bringing transparency and accountability to India's real estate sector. Effective from 1 May 2017, RERA established state-level Real Estate Regulatory Authorities and mandated project registration, bringing protection to millions of home buyers.

Which Projects Must Register Under RERA?

All commercial and residential projects where land area exceeds 500 sq.m. OR
Number of apartments exceeds 8 units (in any phase)
Projects where marketing/advertisement has not started yet and all units not sold
Real estate agents: must register with state RERA

Builder's Obligations Under RERA

Register project before launch/marketing with state RERA
Deposit 70% of project funds in a separate designated account (RERA escrow)
Disclose: floor plans, layout, approvals, specifications, timeline on RERA portal
Quarterly update project progress on portal
No structural changes without buyer's consent
Deliver possession as per registered timeline (3% interest for delay)
5-year warranty on structural defects after possession

Home Buyer Rights Under RERA

Right to receive timely possession (or compensation with interest)
Right to know all project details before booking
Right to quality construction (5-year structural defect warranty)
Right to refund with interest on project cancellation
Right to form Association of Allottees
Right to documents (approved plans, land title)

Compensation for Delay

If the builder fails to deliver possession as per registered date, the buyer is entitled to:

Interest on amount paid at SBI MCLR + 2% for the period of delay, OR
Full refund with interest if buyer chooses to exit

Filing RERA Complaint

File complaint on state RERA portal (most states have online portals)
Pay nominal complaint fee (varies by state)
RERA Adjudicating Officer hears the matter
Order within 60 days typically
Appeal: RERA Appellate Tribunal → High Court

Penalties on Builders

Non-registration: Up to 10% of project cost + 3 years imprisonment (repeat)
False statement: Up to 5% of project cost
Non-compliance with RERA order: 5% of project cost daily until compliance

Need Expert Help?

TaxClue's CA and legal team can assist you. Contact us or see our services.

Need Help with Compliance?

Our CA experts guide you through the entire process — registration to filing.

Frequently Asked Questions

What projects must register under RERA?

Projects with land area over 500 sq.m. or more than 8 apartments must register with the state RERA before launch or marketing.

What is the 70% RERA escrow rule?

Builders must deposit 70% of project collections from buyers in a designated bank account, usable only for project construction and land costs — preventing fund diversion.

What compensation does a buyer get for RERA delay?

Interest at SBI MCLR + 2% on amounts paid for the delay period, or full refund with same interest if the buyer opts to exit.

What is the 5-year RERA warranty?

Builders must rectify any structural defects (plumbing, electrical, construction) reported within 5 years of possession handover at no extra cost.

Where do I file a RERA complaint?

On the state RERA portal (e.g., MahaRERA for Maharashtra, HRERA for Haryana). Filing is online with a nominal fee. Orders are typically passed within 60 days.

Can buyers get a refund under RERA?

Yes. If a builder fails to deliver possession as promised, buyers can seek full refund with interest at MCLR + 2% before the RERA Adjudicating Officer.