RERA Explained: What Every Property Buyer in India Must Know Before Signing

RERA transformed Indian real estate by putting buyers first. Here's what the law means, what protections it gives you, and how to verify any project before you invest.

For years, Indian real estate was one of the most unregulated industries in the country.

Buyers paid in full, projects were delayed by years, floor plans changed without

notice, and there was almost no legal recourse. RERA changed all of that.

If you are buying property in India — whether a flat, villa, plot, or commercial space —

understanding RERA is not optional. It is the single most important law protecting your

investment.

What is RERA?

The Real Estate (Regulation and Development) Act, 2016 — commonly known as RERA — came

into effect on 1 May 2017. It was enacted by the Government of India to bring

accountability, transparency, and efficiency to the real estate sector.

RERA established a regulatory authority in each state, called the Real Estate Regulatory

Authority, which oversees all real estate transactions, registrations, and disputes.

Every state has its own RERA portal where you can verify projects and agents.

Why Was RERA Introduced?

Before RERA, buyers had almost no protection. Common complaints included:

- Projects delayed by 5 to 10 years with no penalty on developers

- Carpet area being sold as super built-up area, inflating prices by 30–40%

- Money collected for one project being diverted to another

- Misleading advertisements with amenities that were never delivered

- Developers changing layouts, floor plans, and specifications after booking

RERA was introduced specifically to address every one of these issues.

Key Protections RERA Gives Buyers

1. Mandatory Project Registration

Any project with more than 8 units or a plot larger than 500 square metres must be

registered with RERA before it can be marketed or sold. The developer must disclose all

project details — floor plans, approvals, timeline, and financials — on the state RERA

portal.

2. Carpet Area Standardised

RERA defines carpet area clearly: the net usable floor area within the walls, excluding

the thickness of walls, terraces, balconies, and common areas. Developers must now sell

only on carpet area, not super built-up area. This alone has saved buyers significant

money.

3. 70% of Funds in Escrow

Developers must deposit 70% of all collections from buyers into a dedicated escrow

account. This money can only be used for the registered project — it cannot be diverted

elsewhere. This directly addresses the fund diversion problem that caused most major

project failures.

4. Delivery Timeline is Binding

The completion date registered with RERA is a legal commitment. If a developer delays

beyond that date, they must pay interest to buyers at the same rate as a home loan —

typically 10–11% per annum — for every month of delay.

5. Five-Year Structural Defect Warranty

If any structural defect, quality issue, or title problem is found within five years of

possession, the developer must repair or rectify it at no cost to the buyer.

6. Developer Cannot Change the Plan

Any changes to the approved plan require the written consent of at least two-thirds of

the buyers. Developers can no longer alter your flat's layout, size, or specifications

unilaterally.

How to Verify a RERA Registration

Before you book any property, follow these three steps:

- Step 1: Ask the developer or agent for the RERA registration number. It typically

looks like: PBRERA-SAS80-DR0030 (Punjab), HARERA-GGM-2024-XX (Haryana), or similar.

- Step 2: Visit your state's RERA portal. For Punjab it is https://rera.punjab.gov.in,

for Haryana it is https://haryanarera.gov.in.

- Step 3: Search the registration number and verify that the project details, developer

name, approvals, and possession date match what you were told.

If a developer cannot provide a RERA registration number — do not proceed.

RERA Does Not Cover Everything

There are important limitations to be aware of:

- Projects with fewer than 8 units or under 500 sq. m. are exempt from RERA registration

- Completed projects (where the occupancy certificate has already been issued) are not

covered

- Plotted developments follow slightly different rules in some states

- RERA applies to new sales and first transfers — resale transactions have limited

coverage

What "RERA Approved" Means on Our Listings

At Infinity Realtor, every listing that carries the RERA Approved badge has been

verified against the state registry. We confirm the registration number is valid, the

project is active, and the developer's disclosed details match our listing information.

When you enquire about a RERA-approved property through us, we provide the full

registration details so you can independently verify everything before making any

decision.

The Bottom Line

RERA is the strongest protection Indian real estate buyers have ever had. It does not

guarantee that every project will be perfect, but it creates legal accountability where

none existed before.

Before you sign any booking form or make any payment — verify the RERA number, read the

registered project details, and make sure the possession date is clearly stated. These

three steps take less than 10 minutes and can protect an investment of several lakhs or

crores.

If you have questions about a specific project or want help verifying a RERA

registration, our team is here to help.