Glossary · Real Estate & RERA
RERA
Real Estate (Regulation and Development) Act, 2016 — a central law that regulates the real-estate sector and protects home-buyers' interests.
RERA mandates that every real-estate project with more than 8 units or 500 sq.m. of area must register with the state RERA authority before launch, advertising, or sales. Builders must deposit 70% of project funds in a designated escrow account and can withdraw only in proportion to work completed. RERA prescribes standard carpet-area-based sale agreements, project delivery timelines, and defect-liability periods (5 years). Penalty for non-registration: up to 10% of project cost. Buyers can file complaints with the state RERA authority or appellate tribunal.
Examples
A builder launching a 100-flat township in Mumbai registers the project with MahaRERA, deposits 70% of buyer funds in escrow, and discloses completion timelines, carpet area, and amenities on the portal.