Complete guide to RERA registration in India — understanding the Real Estate Regulation and Development Act 2016, registration requirements for builders, buyer rights, compliance obligations, and state-wise RERA portals.
What Is RERA?
The Real Estate (Regulation and Development) Act, 2016 — commonly known as RERA — is a landmark legislation aimed at protecting homebuyers and promoting transparency, accountability, and efficiency in the Indian real estate sector. RERA established Real Estate Regulatory Authorities in each state to regulate and adjudicate matters related to real estate projects.
Before RERA, homebuyers had limited recourse against project delays, fund diversions, and misleading advertisements. RERA changed the landscape by mandating project registration, separate escrow accounts, defined timelines, and strict penalties for non-compliance.
Key Features of RERA
| Feature | Benefit |
|---|---|
| Mandatory Project Registration | All projects above 500 sq.m. or 8 units must be registered with RERA |
| 70% Escrow Account | 70% of amounts collected from buyers must be deposited in a separate bank account for land and construction costs only |
| Carpet Area Definition | Standardised definition of carpet area — ensures buyers know what they're paying for |
| Advance Payment Cap | Builder cannot demand more than 10% of property cost as advance before registration of sale agreement |
| Defect Liability | Builder liable for structural defects for 5 years from possession |
| Timely Delivery | Builder must deliver possession as per the registered timeline or face penalties |
| No False Advertising | Advertisements must match registered project plans |
Who Must Register Under RERA?
Promoters/Builders
Every promoter (builder/developer) must register their real estate project with the state RERA authority before advertising, marketing, selling, or offering for sale any plot, apartment, or building. Registration is mandatory for projects:
- On land exceeding 500 square metres, OR
- Having more than 8 apartments/units (including all phases)
Real Estate Agents
Any person facilitating the sale or purchase of real estate projects (brokers/agents) must also register with the state RERA authority and obtain a Registration Number before dealing in any registered project.
Project Registration Process
Step 1: Prepare Documents
- Land title documents and encumbrance certificate
- Development/building plan approved by the local planning authority
- Commencement certificate / Building permission
- Layout plan with specifications
- Details of promoter (PAN, Aadhaar, previous projects)
- Proforma allotment letter, agreement for sale, conveyance deed
- Estimated cost of the project and timeline
- Audited balance sheet and ITR of the promoter for preceding 3 years
- Details of the escrow account for the project
Step 2: Apply on the State RERA Portal
Each state has its own RERA portal. Example portals:
- MahaRERA — maharera.mahaonline.gov.in
- UP-RERA — up-rera.in
- HRERA (Haryana) — haryanarera.gov.in
- TNRERA (Tamil Nadu) — tnrera.in
- Karnataka RERA — rera.karnataka.gov.in
Fill the application form and upload all required documents on the respective state portal.
Step 3: Pay Registration Fee
Pay the prescribed registration fee — varies by state and project size. Typically ₹5-10 per sq.m. for non-commercial projects and ₹10-20 per sq.m. for commercial projects.
Step 4: RERA Authority Review
The RERA authority reviews the application, may seek clarifications, and if satisfied, grants RERA Registration Number. This number must be displayed in all advertisements and communications.
Builder Obligations After Registration
- Regular Updates: Upload quarterly progress reports (financial and physical) on the RERA portal
- Escrow Compliance: Maintain 70% of buyer funds in a separate bank account; withdrawals only proportional to construction progress (certified by Engineer, CA, and Architect)
- No Plan Changes: Cannot change approved plans without 2/3 consent of allottees
- Timely Possession: Deliver possession within the registered timeline; pay interest (SBI MCLR + 2%) for delays
- Title Insurance: Ensure marketable title with no encumbrances
Buyer Rights Under RERA
- Right to information — access all project documents, plans, and progress on RERA portal
- Right to claim refund with interest if builder fails to deliver on time
- Right to compensation for defects in construction within 5 years
- Right to fair agreement — no one-sided clauses favouring the builder
- Right to file complaint with RERA Authority or Appellate Tribunal
Penalties
| Offence | Penalty |
|---|---|
| Non-registration of project | Up to 10% of project cost; continued violation — imprisonment up to 3 years |
| Non-registration of agent | ₹10,000/day; continued violation — imprisonment up to 1 year |
| False information | Up to 5% of project cost |
| Non-compliance with RERA orders | Imprisonment up to 3 years + fine up to 10% of project cost |
How The Ledger Company Can Help
The Ledger Company helps builders with RERA project registration, quarterly compliance filings, escrow account management, and documentation. For buyers, we provide legal advisory on RERA complaint filing and dispute resolution. Schedule a consultation for RERA compliance assistance.
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