Understanding the RERA Act 2016: A Complete Guide for Homebuyers

The Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, was enacted to bring transparency and accountability to the Indian real estate sector. Before RERA, homebuyers had limited legal recourse against delayed projects, misleading advertisements, and unfair practices by developers.

What is RERA?

RERA is a landmark legislation that established Real Estate Regulatory Authorities in each state to oversee and regulate the real estate sector. The Act aims to protect the interests of homebuyers while also ensuring orderly growth of the real estate industry.

Key Provisions for Homebuyers

1. Mandatory Project Registration

Every real estate project with a plot size of more than 500 square meters or more than 8 apartments must be registered with the state RERA authority before any advertisement or sale.

2. Carpet Area Transparency

Developers must sell properties based on carpet area, not the ambiguous “super built-up area.” This ensures homebuyers know exactly what they are paying for.

3. Project Timeline Compliance

Developers are legally bound to deliver projects within the timeline specified at the time of registration. Any delay beyond the promised date entitles buyers to compensation or a full refund.

4. Escrow Account Requirement

70% of the funds collected from buyers must be deposited in a separate escrow account and can only be used for construction and land costs. This prevents fund diversion.

5. Structural Warranty

Developers must fix any structural defects or deficiencies in workmanship within five years of possession at no additional cost to the buyer.

How to File a RERA Complaint

If you face issues with a developer, you can file a complaint with your state RERA authority:

1. Visit your state RERA website
2. Register as a complainant
3. File your complaint with relevant documents
4. Track the complaint status online

How ReraTracker Helps

ReraTracker simplifies RERA compliance monitoring by letting you track project registrations, check developer histories, and monitor compliance deadlines — all in one place.

Stay informed about your rights as a homebuyer and make confident real estate decisions.