All Known about RERA Act


   Real Estate as a general term describes the built environment, which plays a vital role in every aspect of an economy, society, and environment, the common man who invested his lifelong savings in buying a property. To protect and safeguard the interests of the home buyers and to ensure that they are not exploited by the developers/builders.


  • RERA stands for Real Estate Regulatory Authority, the bill of this parliament of India act was passed on 10th March 2016 by Rajya sabha was effective from 1st May 2016.


  • Under the RERA act, a minimum of 70% of the buyers and investor's money will be kept in a separate account. This money will then be allocated to the builders only for construction and land-related cost.


  • Developers and builders cannot ask for more than 10% of the property's cost as an advance payment before the sale agreement is signed.


  • Builders are supposed to submit the original documents for all projects they undertake and not supposed to make any changes to the plans without the consent of the buyer.


  • The builder must rectify any issue faced by the buyer with 5 years of purchase, this issue must be rectified within 30days of the complaint.

Standardized Carpet Area:

  • The Builder would calculate the carpet area as 1500SFT and the other would calculate the carpet area of 1400SFT.


  • RERA emphasizes on timely completion of projects. Any delay means that the developer has to pay the buyer interest of 2% over SBI's MCLR for the period of delay.


  • The developer has to resolve disputes with buyers within 120 days of it being filed.


  • The rate of interest to be paid shall be the same for both parties.


  • The buyer has the option to withdraw from the project wherein he is entitled to a full refund of the amount paid as advance or otherwise along with interest and claim compensation.


Registration of Projects Under RERA:

All commercial and residential real estate projects have to register except in projects Where-

  • The Promoter has received the completion certificate of the project before the commencement of the act.


  • The area of land proposed to be developed does not exceed


  • The number of apartments is not more than 8 


  • Any repair or renovation of an existing building or structure that does not require marketing advertising, and selling of any apartment or plot.

The Registration process for Real Estate Agents:

  • Fill an application to the filing of complaints under the RERA Act along with fees and documents to get registered with RERA.


  • You will receive a registration number from the regulator and this number to be mentioned in every property sale.


  • Every quarter you are required to maintain the books of account, record, and documents related to the transactions.


  • Share all the information and documents about the project with the buyer.


  • The agent may be suspended for the misrepresentation or found during the registration process.

Documents required for registration under RERA:


The following documents should be enclosed in hardcopy with the application.

  • Pan Card of the builder


  • ITR of the last 3 years and the balance sheet of the builder


  • The builder must clarify about the apartment( Carpet area, No of floors, parking space)


  • Declaration by the builder of having the legal title of the land with proof.


  • Details of the land ( rights, title, mortgage).


  • If the builder is not the owner of the land, the consent letter of the actual owner with the document will be required.


  • Details of the project(Location, Sanctioned plan, Layout plan)


  • The ownership document( Proforma of allotment Letter agreement of sale)  


  • Information of the persons involved( Architects, Engineers, and others)


Filling of Complaints under RERA:


  • Any aggrieved person may file a complaint with RERA for any violation of the provisions of the Act.


  • In case the person is not satisfied with the decision made by RERA or its officer, he may file an appeal before the RERA appellate tribunal within 60 days.


  • From the date of the decision made by the appellate tribunal, a person can file an appeal to the high court with 60 days.

Where to apply:  RERA Application 


Conclusion: For every real estate company, real estate agents are must and should be applied RERA, if anyone has facing issues with builder or agent you can directly complain in RERA.