RERA (Real Estate Regulation and Development Act), passed in 2016 in India, aims to make the real estate sector more transparent and reliable.
Overall, RERA helps create a more trustworthy and fair real estate market in India, boosting consumer confidence.
Frequently Asked Questions
What is RERA and why was it introduced?
Answer: RERA stands for the Real Estate Regulatory Authority, established under the Real Estate (Regulation and Development) Act, 2016. It was introduced by the Government of India to regulate the real estate sector, ensure transparency, and protect the interests of homebuyers and investors.
What does RERA stand for in real estate?
Answer: RERA stands for Real Estate Regulatory Authority. It is a statutory body that monitors and regulates real estate transactions to ensure accountability and fair practices in the sector.
When was the RERA Act implemented in India?
Answer: The RERA Act was passed in March 2016 and officially came into effect on 1st May 2017.
What is the Purpose of RERA?
- Protect homebuyers from delays and fraud.
- Ensure transparency in real estate transactions.
- Promote fair practices between builders, buyers, and agents.
- Provide a fast dispute redressal system.
How does the RERA Act protect homebuyers in India?
Answer: RERA mandates builders to register projects, disclose accurate project details, follow approved plans, and avoid delays. It also provides a legal platform for homebuyers to file complaints against fraudulent practices.
What is a RERA Approved Property?
A RERA approved property means the builder has official permission from the RERA government authority to sell the property.
It means:
- The builder has registered the project legally.
- All important papers like land papers and building plans are submitted.
- The project is safe to buy.
- You can check the project details on the RERA website.
Benefits of Buying a RERA Approved Property:
- You will get your home on time.
2.The builder cannot cheat you.
3.You pay only for usable area (carpet area).
4.Your money is safe—the builder must use it only for that project.
5.You can complain to RERA if there's any problem.
Note : If the property is not RERA approved : It may be illegal or risky.The builder may delay the project.You may lose money.
RERA Property vs Non-RERA Property
- RERA Property vs Non-RERA Property
Feature | RERA Property | Non-RERA Property |
Registration | Registered under RERA Act | Not registered under RERA |
Safety | Safe and legally approved | Risky, may be illegal |
Carpet Area and Built-up Area in a RERA-approved project:
1.What is Carpet Area in RERA?
Carpet Area is the actual usable area inside the walls of your home.
It includes:
- Living room, bedroom, kitchen, bathroom, balconies (if covered).
- It does not include walls, common areas, lift, stairs, etc.
* RERA mandates that price must be based only on Carpet Area, not built-up or super built-up area.
2.What is Built-up Area?
Built-up Area = Carpet Area + Thickness of walls + Balcony + Utility areas.
It's slightly larger than carpet area but includes spaces that are not usable for living (like walls).
Key Point:
| Type | Includes | Used For Pricing in RERA? |
|---|---|---|
| Carpet Area | Usable floor inside home | Yes |
| Built-up Area |
What benefits of buying a RERA-registered property?
1.What is Carpet Area in RERA?
Carpet Area is the actual usable area inside the walls of your home.
It includes:
- Living room, bedroom, kitchen, bathroom, balconies (if covered).
- It does not include walls, common areas, lift, stairs, etc.
* RERA mandates that price must be based only on Carpet Area, not built-up or super built-up area.
2.What is Built-up Area?
Built-up Area = Carpet Area + Thickness of walls + Balcony + Utility areas.
It's slightly larger than carpet area but includes spaces that are not usable for living (like walls).
Key Point:
| Type | Includes | Used For Pricing in RERA? |
| Carpet Area | Usable floor inside home | Yes |
| Built-up Area |
Payment to Buyer as per RERA Act?
Payment to Buyer as per RERA Act
1. Delay in Possession
If the builder does not give the property on time, the buyer has two options:
Option 1: Stay in the project
The builder must pay monthly interest to the buyer for the delay.
This interest rate is decided by RERA (usually based on SBI’s highest MCLR + 2%).
Option 2: Cancel the booking
The buyer can cancel the agreement, and the builder must:
- Refund the full amount paid
- Pay interest on that amount (until the refund is made)
2. Project is Not Completed or Registration is Cancelled
- If RERA cancels the project’s registration, the buyer gets a refund + interest.
- Payments are made from the project's separate RERA account.
3. Compensation for Defects or False Promises
- If there’s a construction defect or poor quality within 5 years of possession, the builder must fix it for free.
- If the builder made false promises, the buyer can file a complaint and ask for compensation.
4.Required for Buyer to Claim Payment:
- Sale agreement
- Payment receipts
- Builder’s communication on possession dates
- Application filed on the State RERA porta
Note :All complaints or refund/interest claims must be filed under the respective state’s RERA portal (e.g., MahaRERA for Maharashtra).
What can buyer do if builder changes project?
Under Section 14 of the RERA Act, the builder cannot make major changes—such as layout plan, number of floors, flat sizes, common areas, or structural design—without written consent from at least two-thirds of the buyers.
What are buyer rights if builder alters project?
If the builder changes the project without your permission, you can:
- File a Complaint on the RERA Portal
Visit your state RERA website (e.g., MahaRERA)
File a complaint under Section 31 of the RERA Act
Submit proof like the builder-buyer agreement, brochure, or emails - Demand Compensation or Refund
Ask for compensation for mental stress or financial loss
Or demand a full refund with interest if the changes affect your decision or utility - File for Monetary Relief via RERA Adjudicating Officer
Use the adjudication process if you seek a financial claim or refund
What are buyer rights under RERA for project delay?
1. Right to Get Interest (Compensation)
- If you still want the property, the builder must pay interest to you for every month of delay.
- The interest rate is usually SBI’s highest MCLR + 2%.
2. Right to Cancel the Booking
- If the delay is too long, you can cancel the agreement.
The builder must:
- Refund the full amount paid
- Pay interest on that amount till the refund date
What Buyer Should Do:
Step 1: Collect All Documents
- Builder-Buyer Agreement
- Receipts of payments made
- Possession date promised in agreement or brochure
Step 2: File a Complaint on RERA Website
Go to your state’s RERA portal (like MahaRERA) and:
- Register/login
- File a complaint under Section 31 of the RERA Act
- Attach proof documents
- Mention what you want: interest, refund, or possession with compensation
Step 3: Attend the Hearing
RERA will give you a date for hearing (online or offline).
Based on facts, RERA will order the builder to pay or complete the project.
Important: Don't Wait Too Long
- The longer you wait, the more complicated it gets.
- Filing a RERA complaint is affordable and simple—no need for a lawyer in most cases.
What is the role of RERA authorities in each state?
Answer: Each state RERA authority is responsible for registration, project monitoring, dispute resolution, and enforcing compliance in its jurisdiction.
MAHARASHTRA REAL ESTATE REGULATORY AUTHORITY
(By Advocate Ravindra Pandharkar)
Brief Introduction
Govt. Of India passed an Act — “Real Estate (Regulation and Development) Act, 2016” which was made effective from 1st May, 2016. As per Section 20 of the Act every State is directed to establish Real Estate Regulatory Authority and frame rules for administering the provisions of the Act in that State.
Accordingly the Government of Maharashtra, has established Maharashtra Real Estate Regulatory Authority (MahaRERA), vide Notification No. 23 dated 8 March 2017 and framed the Rules — “Real Estate (Regulation and Development)(Registration of real estate projects, Registration of real estate agents, rates of interest and disclosures on website) Rules, 2017” for regulation and promotion of real estate sector in the State of Maharashtra, with its headquarters at Mumbai.
The Contents and the Chapters in the Rules
| Chapters | Contents | Rules |
|---|---|---|
| Chapter I | Preliminary | 1-2 |
| Chapter II | Real Estate Projects (Mainly contains information required for Registration of Projects.) | 3-10 |
| Chapter III | Real Estate Agents (Mainly contains provisions regarding Registration, Obligations and Functions of Agents.) | 11-17 |
| Chapter IV | Rate Of Interest Payable By Promoter And Allottee And Timelines For Refund | 18,19 |
| Chapter V | Details To Be Published On The Website Of Maharashtra Real Estate Regulatory Authority | 20-22 |
| Chapter VI | Miscellaneous | 23 |
The FORMS AND ANNEXURES UNDER Rules
| FORM / ANNEXURE NO. | NAME OF THE FORM & PURPOSE |
|---|---|
| FORM ‘A’ | Application For Registration Of Project |
| FORM ‘B’ | Declaration, Supported By An Affidavit, Which Shall Be Signed By The Promoter Or Any Person Authorized By The Promoter |
| FORM ‘C’ | Registration Certificate Of Project |
| FORM ‘D’ | Intimation Of Rejection Of Application For Registration Of Project / Rejection Of Application For Extension Of Registration Of Project / Revocation Of Registration Of Project |
| FORM ‘E’ | Application For Extension Of Registration Of Project |
| FORM ‘F’ | Certificate For Extension Of Registration Of Project |
| FORM ‘G’ | Application For Registration Of Real Estate Agent |
| FORM ‘H’ | Registration Certificate Of Real Estate Agent |
| FORM ‘I’ | Intimation Of Rejection Of Application For Registration Of Real Estate Agent / Rejection Of Application For Renewal Of Registration Of Real Estate Agent / Revocation Of Registration Of Real Estate Agent. |
| FORM ‘J’ | Application For Renewal Of Registration Of Real Estate Agent |
| FORM ‘K’ | Renewal Of Registration Of Real Estate Agent |
| ANNEXURE A | Model Form of Agreement to be entered into between Promoter and Allottee(s) |
| ANNEXURE B | (Authenticated copies of Property Card or extract Village Forms VI or VII and XII or any other revenue record showing nature of the title of the Vendor/Lessor/Original Owner/Promoter to the project land). |
| ANNEXURE C1 | (Authenticated copies of the plans of the Layout as approved by the concerned Local Authority) |
| ANNEXURE C2 | (Authenticated copies of the plans of the Layout as proposed by the Promoter and according to which the construction of the buildings and open spaces are proposed to be provided for on the said project) |
| ANNEXURE D | (Authenticated copies of the plans and specifications of the Apartment agreed to be purchased by the Allottee as approved by the concerned local authority) |
| ANNEXURE E | (Specification and amenities for the Apartment) |
| ANNEXURE F | (Authenticated copy of the Registration Certificate of the Project granted by the Real Estate Regulatory Authority) |
Organisation Structure (AS GIVEN ON THE WEBSITE OF MAHARERA)
The Organization structure of MahaRERA is as follows:
Organogram for Maharashtra Real Estate Regulatory Authority (MahaRERA)
Maharashtra Government also Framed Other Rules
The Government of Maharashtra has also framed following Rules and Regulations for regulation of real estate sector in the State of Maharashtra.
- Maharashtra Real Estate Regulatory Authority, Officers and Employees (Appointment and Service Conditions) Rules, 2017
- Maharashtra Real Estate (Regulation and Development) (Recovery of Interest, Penalty, Compensation, Fine payable, Forms of Complaints and Appeal, etc.) Rules, 2017
- Maharashtra Real Estate Appellate Tribunal, Officers and Employees (Appointment and Service Conditions) Rules, 2017
- Maharashtra Real Estate Regulatory Authority (Form of Annual Statement of Accounts and Annual Report) Rules, 2017
- The Maharashtra Real Estate Regulatory Authority (General) Regulations, 2017.
- The Maharashtra Real Estate Regulatory Authority (Recruitment and Conditions of Service of Employees) Regulation, 2017.
- Charges for accessing MahaRERA web-based Application for registration of project and real estate agents, extension of registration for projects and real estate agents including updating website, database management and maintenance under regulation 48 of the MahaRERA General Regulations, 2017.
MahaRERA also regulates and exercise control in the union territories of Daman, Diu, Dadra and Nagar Haveli.
All the above Rules and Forms can be downloaded from the website of MahaRERA — Click here
Conciliation Forum
The MahaRERA authority provided citizens the complaints filing service, as per the Act, wherein any aggrieved person may file a complaint with the Authority or the adjudicating officer, as the case may be, with respect to any registered real estate project, for any violation or contravention of the provisions of this Act or the rules and regulations made there under.
As per Section 32 (g) of the Real Estate (Regulation and Development) Act 2016, Maharashtra Real Estate Regulatory Authority to facilitate amicable conciliation of disputes between the promoters and the allottees through the MahaRERA Conciliation and Dispute Resolution Forum. In brief the objective of the forum will be as follows:
- Constitute / establish panel of eminent Conciliators representing different stakeholder groups.
- To follow Conciliation rules emanating from best features of common and civil law systems after extensive consultation with practitioners
- To promote and popularize the amicable and effective settlement of disputes arising with reference to Real Estate (Regulation and Development) Act 2016, with various Alternate Dispute Resolution (ADR) mechanism.
- To popularize conciliation as an effective dispute resolution mechanism with moderate cost (cost effective) and speedy settlement of commercial disputes.
- To co-ordinate/assist ADR proceedings by establishing facilities and providing administrating services.
- Finally providing the best platform for ADR.
Establishment of Real Estate Appellate Tribunal
The Maharashtra Real Estate Appellate Tribunal is established by MahaRERA at 1st Floor, One Forbes, Dr. V.B. Gandhi Road, Kalaghoda, Fort, Mumbai - 400 001. The Appellate Tribunal acts as a Court with Judicial Powers and settles the disputes.
In most of the cases the disputes are resolved. Any party aggrieved by the orders of the Tribunal can move to High Court after 60 days.
How to file complaint in RERA Maharashtra online?
Go to the Maharashtra RERA portal — Click here
Create New Account as a Complainant and lodge online complaint as follows:
- 3 types of users can create account: 1. Promoter 2. Agent 3. Complainant. You need to create the user as complainant and then log in with your username and password to file a complaint.
- Fill in the Necessary Details of the complaint asked in the Form.
- Pay Rs. 5000 after you register your complaint.
After filing the complaint the consumer and the builder will get a call from the MahaRERA office for the verification of the evidence. After MahaRERA hears from both parties they will come up with a resolution. This is the process of RERA complaint in MahaRERA.
Disclaimer by the Writer of Article
This was an attempt made to cover the important provisions of the law. The material contained herein is not exhaustive, and contains certain generalizations and descriptions. The latest Provisions, Rules and Notifications must be viewed to get the exact information for interpretation. The presenter is not responsible for any loss incurred on the actions taken based on the material presented above.
— Advocate Ravindra Pandharkar