years of experience selling luxury real estate for some the world’s top private clubs and resorts in the Dominican Republic, The Bahamas, Belize and Ireland.

What is RERA (the Real Estate Regulation Act) in brief?

Real Estate Regulatory Authority (RERA) bill was passed on 2013 by Indian National Congress and got approved in March 2016 for 13 states and union territories.

Image source(ATIREM)

Here are the list of states and union territories where RERA act have been notified.

  • Andhra Pradesh
  • Bihar
  • Gujarat
  • Kerala
  • Maharashtra
  • Odisha
  • Uttar Pradesh
  • Chhattisgarh
  • Andaman & Nicobar Islands
  • Chandigarh
  • Dadra & Nager Haveli
  • Daman & Diu
  • Delhi
  • Lakshadweep

Tamilnadu and few other states have also framed their draft rules of RERA


There is a great need for homes in India. Most of the people face great loss in real estate due to fake promises made by few real estate builders. It is the one of the greatest revenue for the Indian government. As government failed to observe these many people has become victims. To eradicate this problem government has passed RERA to protect homebuyers.

Some of the problems faced by people are:

  1. Delay in giving the house to the buyers due to some reasons like delayed funding etc.
  2. Selling of same flat/house to multiple buyers
  3. Contracts made in favor of builders alone.

Benefits of buyers from RERA :

  • The buyers will pay only for the carpet area (area within the walls), not for the built up area.
  • For years buyers have to pay 20% of the total amount for booking. But with RERA buyers can pay only 10% of the amount that too paid only after the agreement for sale is made by the builder. Builders have to maintain a separate bank account for each project.
  • The builder should rectify the structural defects if any for 5 years (earlier it was 2 years) after the possession is handed to the buyer. The defect must be corrected within 30 days of the complaint. We, at Cityrene builders, use GFRG to prevent the damages like cracks, water seepage in the building.
  • Buyer has the rights to know the project plan in detail and also to know each stage of completion.
  • Developers have to deposit 70% of the money in a separate bank account to meet the cost requirement of the project. Also, the buyers will give cost for the project at each stage of construction instead of getting total money of the project.
  • RERA is mandatory for all commercial and residential projects, which are more than 500 sq.m. or 8 apartments must be registered before starting the project.
  • Developers can sell the project only after the clearances.
  • Website owned by the builders is registered to ensure correct information about details of the development plans, financial details, plan details, registered agents and consultants etc.
  • Builders have to pay a penalty of 10% or even imprisonment in-case of not honouring the commitment made by them.
  • Builders have to register each project with the local housing regulatory body. The builders or the developers have to submit building plans, approvals.During the process of construction if there is any change in the plan, should be informed and approval before making the changes.

How builders can be benefited by RERA:

  • Builders can impose penalty to the buyers for not paying dues on time.
  • Builders can approach the authority in-case of any issues with the buyers.


Establishment of RERA act will enhance the real estate market in India; will bring the buyers confident back on the builders. This act will also reduce the fake real estate buyers. While buying a property builders should ask the builders for their approvals and certifications of RERA and can confidently approach the builder. If anything goes wrong in the future buyers can approach the authority.

Check our other blogs here.