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The Real Estate (Regulation and Development) Act (RERA) is a key law that governs the real estate sector in the country, created to regulate property development and protect homebuyers from delays, fraud, and unfair practices.
But what does it actually mean for someone looking to buy a home or for a developer planning a project?Under RERA, developers must register their housing projects with the respective state authority before they can advertise, launch, or sell them.RERA registration plays a dual role, building trust in the market while ensuring accountability. For buyers, it means access to verified project details, clearer timelines for possession, and legal protection against delays, misleading promises, or hidden charges.
For developers, it adds credibility, improves buyer confidence, and helps attract more genuine interest in their projects.In essence, RERA aims to bring greater transparency to real estate transactions, reduce disputes, encourage timely delivery of projects, and strengthen the reputation of compliant developers in the market.
Which projects must register
A project must register under RERA if it meets any of these tests:
- Land area exceeds 500 square meters.
- The development includes more than eight apartments, plots, or units in all phases.
- Construction began before the Act came into force in that state and a Completion Certificate has not yet been issued.
Exemption: Structural renovation, repairs, or redevelopment that do not involve new advertising, marketing, or the sale of new units do not require registration.
How approval normally works
The registration process follows a standard sequence:
- Online filing (Form A): The promoter submits project details and declarations on the state RERA portal.
- Hard copies and fees: Some states require physical documents and the registration fee within a short time after online submission.
- 30-day scrutiny: The authority must review the application within 30 days and either approve it or issue a deficiency notice.
- Registration certificate: On approval, the promoter receives a certificate with a unique registration number and portal credentials.
- Quarterly updates: Promoters must upload Quarterly Progress Reports within 15 days after each financial quarter ends.
Documents required
Promoters must provide financial, legal, and technical documents, including:
- Promoter details: PAN, legal name, registered address, and director/partner profiles and photos.
- Financials: Audited statements for the last three financial years and a five‑year project history.
- Land title: Title deeds, chain of title, and a non‑encumbrance certificate.
- Joint development agreements: Registered JDA or MoU and landowner consent if the promoter does not own the land.
- Sanctioned plans: Approved layout, building plans, and carpet‑area measurements.
- Statutory approvals: Commencement Certificate and environmental, fire, and municipal clearances.
- Dedicated bank account: Details of the project account where 70% of buyer collections must be deposited for land and construction.
Common rules across major states
Across Delhi, Karnataka, Tamil Nadu and Maharashtra, RERA’s core protections remain the same:
- Thresholds: All use the 500 sq. meter / eight‑unit thresholds for mandatory registration.
- 70% escrow rule: Promoters must keep 70% of customer collections in a dedicated account for project costs.
- Public portals: States maintain portals where approved plans and booking statuses must be displayed for buyers.
State-level differences
While the baseline is uniform, states have added operational rules to fit local needs.National Capital Territory of Delhi
- Three-account system: Delhi requires a Master Account (all collections), a RERA Escrow Account (70% for construction), and a Free Account (remaining 30%).
- Three-day hard-copy deadline: Promoters must submit three bound physical copies of the application within three days of online filing.
- Full territorial scope: Delhi’s rules apply across urban, planned, unplanned and certain rural land zones, including Lal Dora and Abadi areas.
Karnataka
- Ongoing project cut-offs: Karnataka sets specific exclusions for “ongoing projects,” for example where 60% of individual sale deeds are executed or civic amenities are handed over to municipalities.
- Standardized penalty interest: Delays by promoter or buyer use interest tied to the State Bank of India’s highest MCLR plus 2%.
Tamil Nadu
- Single-window system: Tamil Nadu integrates RERA checks with the state’s Single Window Portal for Planning Permission to speed approvals and reduce inter-departmental delays.
Maharashtra (MahaRERA)
- Financial tracking: MahaRERA requires detailed expenditure charts and progress curves to prevent funds being diverted between projects.
- Litigation disclosure: Promoters must publish active land- or project-related litigations from the past five years on the public portal.
RERA sets a common consumer‑protection framework nationwide, thresholds for registration, the 70% escrow requirement, and public disclosure through state portals, while states add procedural and operational rules to address local conditions. Developers must follow both the central requirements and the specific procedures of the state where the project is located to ensure lawful registration and ongoing compliance.
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