Buying a home or developing a real estate project involves significant financial and legal commitments. The Real Estate (Regulation and Development) Act, 2016 (RERA Act) was introduced to promote transparency in the real estate sector, regulate real estate projects and agents, and provide a framework for protecting the interests of homebuyers.

In 2026, RERA compliance continues to be an important consideration for builders, developers, real estate agents, investors and homebuyers. While the RERA Act provides a central regulatory framework, the applicable rules, regulations, procedures and portals may differ across States and Union Territories. Understanding project registration, disclosures, financial management, agreements, possession and dispute remedies is therefore important for parties involved in real estate transactions.

What Does RERA Regulate?

RERA establishes a regulatory framework for covered real estate projects and real estate agents. Under Section 3, a promoter generally cannot advertise, market, book, sell or offer for sale a plot, apartment or building in a covered real estate project without registering the project with the relevant Real Estate Regulatory Authority.

The Act provides certain exemptions from registration. Under Section 3, specified smaller projects and certain projects covered by statutory exceptions may not require registration, subject to the applicable provisions and State-level requirements. The central threshold generally covers projects where the land proposed to be developed does not exceed 500 square metres or the number of apartments proposed to be developed does not exceed eight, inclusive of all phases. The appropriate Government may reduce these thresholds. The Act also provides an exemption for certain repair, renovation or redevelopment works that do not involve marketing, advertising, selling or new allotment, subject to the statutory conditions. RERA also regulates real estate agents. Section 9 requires registration of real estate agents who facilitate the sale or purchase of plots, apartments or buildings in projects registered under the Act, subject to the statutory framework.

Key RERA Compliance Requirements for Builders and Promoters

1. RERA Project Registration

Project registration is a primary obligation under Section 3. Before advertising, marketing or selling a covered project, promoters should determine whether registration is required and submit the prescribed project details, approvals and documents to the relevant RERA Authority.

2. Accurate Project Disclosures

Sections 11 and 12 require promoters to provide accurate project information and ensure the veracity of advertisements and prospectuses. Details relating to specifications, amenities, approvals and other material aspects should therefore be consistent with the project documents. Under Section 11(1), promoters must also comply with applicable disclosure and updating requirements, including prescribed periodic updates to project information on the relevant RERA portal, in accordance with the applicable State or Union Territory rules.

3. Separate Project Bank Account

Under Section 4(2)(l)(D), 70% of the amounts realised for the project from allottees must be deposited in a separate account maintained in a scheduled bank, to cover the cost of construction and the land cost, and used only for that purpose. Withdrawals must be in proportion to the percentage of completion of the project and only after certification by an engineer, an architect and a chartered accountant in practice. The promoter’s accounts must also be audited by a chartered accountant in practice within six months after the end of every financial year.

Under Section 4(2)(l)(D), 70% of the amounts realised from allottees must be deposited in a separate bank account and used only for the cost of construction and land of that project. The appropriate Government may notify a lower percentage. Withdrawals must be in proportion to the percentage of completion of the project and certified by an engineer, an architect and a chartered accountant in practice.

Section 13(1) prohibits promoters from accepting more than 10% of the cost of the apartment, plot or building as an advance payment or application fee without first entering into a written agreement for sale and registering that agreement under the law for the time being in force. The agreement should clearly record the property details, consideration, payment schedule, possession and obligations of the parties.

5. Compliance with Sanctioned Plans

Under Section 14, promoters must develop and complete the project in accordance with the sanctioned plans, layout plans and specifications approved by the competent authorities. Under Section 14(2)(i), additions or alterations to the sanctioned plans, layout plans, specifications, fixtures, fittings or amenities of an apartment, plot or building that an allottee has agreed to take require that allottee’s previous consent, except for the minor additions or alterations permitted by the Act. Under Section 14(2)(ii), any other alterations or additions to the sanctioned plans, layout plans or specifications of the buildings or the common areas require the previous written consent of at least two-thirds of the allottees, other than the promoter, who have agreed to take apartments in that building.

WHAT SHOULD HOMEBUYERS CHECK BEFORE BUYING A RERA PROPERTY?

RERA registration provides access to important project information, but it does not replace independent legal due diligence. Before purchasing, buyers should review the project’s RERA registration, promoter details, approvals, sanctioned plans, specifications, possession timeline and agreement for sale.

The property’s title documents, development rights, encumbrances and disclosed litigation should also be examined. RERA registration does not by itself establish clear title to the underlying property.

Importance of Property Title Search

A property title search examines the ownership history and legal interests affecting the property. Relevant records may include title deeds, previous conveyances, development agreements, mortgages and encumbrance records.

RERA compliance and title due diligence serve different purposes. Even where a project is RERA registered, independent verification of title and development rights may be appropriate, particularly for larger transactions.

Rights of Homebuyers Under RERA

RERA provides statutory rights and protections to allottees. Section 19 deals with the rights and duties of allottees, including access to information concerning sanctioned plans and project specifications.

Under Section 18(1), an allottee may be entitled to a refund, interest or compensation in specified circumstances where the promoter fails to complete the project or give possession in accordance with the agreement for sale. An allottee who withdraws from the project may seek a refund of the amount paid, along with prescribed interest and compensation as provided under the Act. An allottee who does not withdraw may instead claim interest for every month of delay until possession is handed over, at the prescribed rate, subject to the applicable statutory provisions.

RERA Disputes and Legal Remedies

RERA disputes may involve delayed possession, refund, interest, construction defects, project representations or contractual obligations.

Under Section 31, an aggrieved person may file a complaint before the relevant Regulatory Authority or adjudicating officer, as applicable. The appropriate forum depends on the relief sought: under Section 71, the adjudicating officer decides compensation claims under Sections 12, 14, 18 and 19, while other complaints and reliefs fall within the Authority’s jurisdiction. Under Section 44, an appeal against a direction, decision or order of the Authority or adjudicating officer lies to the Appellate Tribunal. Under Section 58, a further appeal against the Appellate Tribunal’s decision or order may be filed before the High Court, subject to the conditions and time limits in the Act.

FAQs on RERA

1. Is RERA registration mandatory for every real estate project?

No. The RERA Act provides specific exemptions from registration, including certain smaller projects and other projects falling within statutory exceptions. The applicable State rules should also be considered.

2. What should a homebuyer check before purchasing a RERA-registered property?

A buyer should review the project’s RERA registration, promoter details, approvals, sanctioned plans, specifications, possession timeline and agreement for sale. Independent property title search and legal due diligence may also be appropriate.

3. Can a homebuyer claim a refund for delayed possession?

Section 18 provides remedies in specified circumstances where a promoter fails to comply with applicable possession obligations. Depending on the circumstances, an allottee may have rights relating to refund, interest and compensation.

4. What is the RERA Appellate Tribunal?

The RERA Appellate Tribunal is the appellate forum established under the Act for hearing specified appeals against orders, decisions or directions of the Regulatory Authority and adjudicating officer.

5. Is a title search necessary even if the project is RERA registered?

RERA registration does not replace independent title verification. A buyer may still need to review title documents, development rights, encumbrances and other property records as part of appropriate legal due diligence.

6. Does RERA apply to commercial property?

RERA can apply to covered real estate projects involving commercial units, subject to the Act, applicable State rules and the structure of the project. Individual lease or rental arrangements require separate consideration based on their specific terms. Section 2(e) of the RERA Act expressly includes offices, showrooms and shops within the definition of “apartment”, thereby covering qualifying commercial units. However, Section 2(d) excludes a person to whom a plot, apartment or building is given on rent from the definition of “allottee”.

Key RERA Developments in 2026

Force majeure extensions. Section 6 permits the Authority to extend a project’s registration due to force majeure, which includes war, subject to an aggregate limit of one year. By an advisory dated 31 July 2026, the Ministry of Housing and Urban Affairs noted that the Department of Expenditure had treated the ongoing West Asia situation as “war” for the purpose of force majeure, and advised Real Estate Regulatory Authorities that they may issue orders extending the registration and completion timelines of registered projects whose completion date falls on or after 28 February 2026 by four months, including through a common order. The advisory is not itself binding, so promoters and homebuyers should check whether the relevant State Authority has issued such an order, as an extension may affect possession timelines and delay-related claims.

Decriminalisation of Section 68. The Jan Vishwas (Amendment of Provisions) Act, 2026 substitutes Section 68 of the RERA Act, which previously provided that an allottee who fails to comply with orders or directions of the Appellate Tribunal was punishable with imprisonment of up to one year, or with a daily fine cumulatively extending up to ten per cent of the plot, apartment or building cost, or with both. The provisions relating to the RERA Act came into force on 7 May 2026 by Gazette notification S.O. 2287(E). Under the substituted Section 68, such an allottee is liable to a penalty which may extend up to ten per cent of the plot, apartment or building cost, without any provision for imprisonment.

Conclusion

The RERA Act, 2016 has established a structured regulatory framework for India’s real estate sector, with emphasis on project registration, transparency, financial discipline, contractual documentation and accountability.

For builders and promoters, maintaining accurate project records and complying with registration, disclosure, financial and construction-related requirements are important aspects of ongoing RERA compliance. For homebuyers, RERA registration should be accompanied by appropriate property due diligence, title verification and contractual review.

Understanding the applicable RERA provisions before entering into a real estate transaction can help parties identify their legal obligations, rights and available remedies at an early stage.

Disclaimer: This article is intended for general informational purposes only and does not constitute legal advice. It reflects the Real Estate (Regulation and Development) Act, 2016, as amended by the Jan Vishwas (Amendment of Provisions) Act, 2026, and related material as of 13 October 2026. The applicability of RERA, State rules, registration requirements and available remedies may vary depending on the facts and circumstances of a particular project or transaction. Professional legal advice should be obtained before acting on a specific matter.