Since its introduction in 2016, the Real Estate (Regulation and Development) Act (RERA) has become a cornerstone of India’s real estate sector. It’s not just a legal framework, it’s a trust-building mechanism aimed at protecting buyers, bringing transparency, and holding developers accountable.

For anyone involved in real estate, homebuyers, developers, or agents, understanding RERA compliance is no longer optional. It’s essential.

What Is RERA and Why Does It Matter?

Before RERA, the real estate market in India was plagued by inconsistent delivery timelines, misleading advertisements, and a lack of transparency. RERA was introduced to address these very issues.

The law’s three main objectives are:

Transparency in project approvals, timelines, and finances
Protection of homebuyers from delays and false promises
Accountability for developers and intermediaries

Each state has its regulatory authority under the Act, like MahaRERA in Maharashtra and UP-RERA in Uttar Pradesh, to ensure compliance at the local level.

Who Needs to Comply with RERA?

1. Real Estate Developers (Promoters)

Any residential or commercial project that exceeds 500 sq. metres or has more than 8 apartments must be registered under RERA before being marketed or sold.

2. Real Estate Agents/Brokers

Agents facilitating the sale or promotion of RERA-registered projects must themselves be registered with the relevant state authority.

RERA Compliance Checklist for Developers

Project Registration

Developers must:

Register the project with their state’s RERA authority
Submit key documents: land titles, approved plans, timelines, and cost estimates
Mention the RERA registration number on all advertisements and brochures

Escrow Account for Buyer Funds

70% of the funds collected from buyers must go into a separate escrow account
These funds can only be used for that specific project’s construction and land costs
This limits misuse and ensures better fund management

Timely Delivery

Developers must commit to a delivery date and are liable for penalties or buyer compensation if the project is delayed.

Clear Legal Title

They must disclose the ownership and status of the land
Any encumbrances, disputes, or legal claims must be revealed upfront

Truthful Marketing

All project details, carpet area, layout, amenities, must be clearly and truthfully presented
RERA prohibits exaggerated claims or misleading imagery

RERA Rules for Real Estate Agents

Agents must:

Register with RERA (valid typically for 5 years)
Promote only registered projects
Maintain transaction records and stay away from misrepresentation
Clearly state the RERA number in all communication

How RERA Empowers Homebuyers

One of the biggest changes RERA has brought is a power shift, buyers now have rights backed by law:

Full disclosure of project timelines, approvals, and carpet area
Right to compensation or refund in case of delays or false promises
Access to all project details on the RERA website
Faster dispute resolution via RERA tribunals, no need to go through lengthy court procedures

Key Documents Required for Project Registration

To register a project, developers must submit:

Promoter’s PAN and Aadhaar
Land ownership/title documents and encumbrance certificates
Approved plans, architectural drawings, and layout
Estimated project cost and payment schedule
Certifications from engineers, architects, and legal professionals
Details of the escrow bank account

For developers, being RERA-compliant is more than just legal compliance, it builds credibility and trust. For agents, it adds legitimacy. And for buyers, it brings much-needed protection in a historically uncertain market.

RERA has brought structure where there was ambiguity, and trust where there was doubt.

In today’s real estate environment, compliance is not a burden. It’s a signal of integrity, a tool for market differentiation, and a long-term investment in reputation.