What is RERA and Why It Matters for Property Buyers
Published: April 2026 | By: WallsNFences Team | Read time: 5 min
Before 2016, India's real estate sector was largely unregulated. Builders could delay projects indefinitely, change specifications without notice, and divert funds from one project to another. Buyers had little legal recourse other than expensive, slow consumer court proceedings.
The Real Estate (Regulation and Development) Act, 2016 — known as RERA — changed this. It is the most significant legal reform for Indian homebuyers in decades.
What is RERA?
RERA is a central act that:
- Regulates real estate developers and agents
- Creates a state-level regulatory authority (the RERA authority) in each state
- Protects homebuyers from fraud, delays, and misrepresentation
- Establishes a fast-track dispute resolution mechanism
RERA came into full effect on 1 May 2017. Every state and Union Territory is required to establish its own RERA authority.
What RERA Requires from Builders
Under RERA, promoters (builders/developers) must:
1. Register the project
Any residential real estate project with a plot area exceeding 500 sq metres or more than 8 apartments must be registered with the state RERA before any marketing, sale, or booking.
2. Disclose full project details publicly
After registration, the following must be publicly available on the RERA portal:
- Layout plans and approvals
- Floor plans and specifications
- Timeline for delivery
- Litigation history of the promoter
- Financial details including encumbrances on land
3. Maintain an escrow account
70% of all buyer payments must be deposited in a separate escrow account and used only for construction and land costs of that specific project. This prevents fund diversion — a common pre-RERA fraud.
4. Deliver on time
If a builder delays delivery, the buyer is entitled to:
- Full refund with interest at the SBI lending rate
- OR interest compensation for every month of delay if the buyer chooses to continue
5. Fix defects for 5 years post-handover
Any structural defect or deficiency in workmanship discovered within 5 years of possession must be rectified by the builder at no cost.
How to Verify a Builder's RERA Registration
- Visit your state RERA portal (links below)
- Search by project name, builder name, or RERA registration number
- Verify the registration is active (not lapsed or cancelled)
- Review the disclosed timeline and compare it against what the builder is telling you
- Check for any complaints or orders against the promoter
State RERA Portals:
- Maharashtra: maharera.maharashtra.gov.in
- Karnataka: rera.karnataka.gov.in
- Delhi: rera.delhi.gov.in
- Gujarat: gujrera.gujarat.gov.in
- Tamil Nadu: www.tnrera.in
- Telangana: rera.telangana.gov.in
What to Do if a Builder Violates RERA
If a builder delays delivery, misrepresents the project, or violates any RERA provision:
- File a complaint with your state RERA authority — complaints can typically be filed online
- RERA adjudicating officers can order compensation, refunds, and penalties within 60 days
- Appeals can be made to the RERA Appellate Tribunal
- For financial fraud beyond RERA's scope, the Consumer Protection Act and IPC provisions apply
Does RERA Apply to Resale Properties?
No. RERA applies only to new projects being sold for the first time by a promoter. Resale transactions between individual buyers and sellers are not covered by RERA.
For resale properties, due diligence must cover:
- Title verification
- Encumbrance certificate
- Property tax clearance
- Building plan approval compliance
WallsNFences covers both new projects (where we encourage RERA disclosure) and verified resale properties (where document review is mandatory for listing).
Looking for RERA-registered new projects? Browse verified new projects on WallsNFences — all builder listings are reviewed before going live.