To protect homebuyers’ rights and bring transparency into the home-buying process in India, the government implemented the Real Estate (Regulation and Development) Act, 2016 which came into effect on 1st May 2017 in Maharashtra. The RERA guidelines were designed to safeguard homebuyers from fraud and boost real estate investments in India. Below are the top 10 RERA rules that one should know as a homebuyer:

RERA registration is mandatory for builders

The RERA Act makes it mandatory for builders to register their commercial, residential, and plotted development projects if the total land area exceeds 500 square meters or the number of proposed apartments in all phases is more than 8 (eight). Such projects need to be registered under the respective state’s Real Estate Regulatory Authority. As per Section 3 of this Act, no builder is allowed to sell or advertise its properties if they are not registered under the RERA.

Disclosures regarding the Project

The RERA rules for builders also mandate them to disclose all details of their properties, details of their properties, including the title of the property, sanctioned plan, project layout, location, carpet area, garage, amenities, etc. These details are made available to the public by uploading them to the official RERA website. In case a builder fails to do so, it may have to pay a hefty penalty.

Calculation of carpet area

The implementation of the RERA Act has brought a standardised method for builders to calculate the carpet area of their properties. As per the RERA guidelines, the carpet area of a property can be defined as “the net usable floor area of an apartment that does not include the area covered by external walls, areas under service shafts, external balconies or verandah area, and exclusive open terrace areas. It can include the area covered by internal partition walls of an apartment”.

Timely delivery of projects

The RERA rules for possession make it mandatory for builders to complete the construction of their projects within the stipulated time. In case any builder fails to provide timely delivery of its project, it may have to pay the entire amount back to the buyer if they wish to leave the contract. Even if the buyer wishes to stay in the contract, the builder will have to pay interest for every month of the delay until the possession is provided.

Quarterly updates on construction progress

Under the RERA Act, a builder must provide regular updates on the construction status of a project to homebuyers who have already invested in it. They are also mandated to upload project details on their websites, such as how many flats in a project are sold to date, the area of the flats etc.

Standardisation of sale agreement

Per the RERA norms, a standard format is followed to prepare the parties’ sale agreements. Every builder or reseller is required to use this format only. Though the builders are allowed to make changes to the agreement as per the facts of the case. This is done to protect homebuyers from one-sided sale agreements that builders used to prepare before the implementation of the RERA Act.

Maximum 10% as advance payment

Under the RERA rules, a builder is not allowed to take more than 10% of the total cost of a property as advance payment from a homebuyer. The builder cannot ask for an additional amount without first entering into a written agreement with a homebuyer.

Five years of defect liability period

As per Section 14 (3) of the RERA Act, if a homebuyer identifies any structural defect in a property within five years of getting possession, it’s the responsibility of the developer to rectify such defects. Further, if the promoter fails to rectify such defects within 30 days, it is liable to pay appropriate compensation to the homebuyer as per the provisions of the Act.

Approval for alteration in the sanctioned plan

If a builder wants to make any alteration in the initial sanctioned plan shared with homebuyers, it can only be done after the consent of two third of the allottees within the project.

Grievance Redressal

If a homebuyer has any complaint about a builder or real estate agent, he or she can write it to the respective Real Estate Regulatory Authority. state’s Real Estate Regulatory Authority. The RERA authority will have to resolve the complaint within 60 days.


These are the top 10 RERA rules homebuyers in India should know. The implementation of the RERA Act has brought transparency and accountability to the Indian real estate industry. This Act covers residential and commercial properties, including flats, bungalows, shops, offices, and warehouses.

Disclaimer- This article is based on the information publicly available for general use as well as reference links mentioned herein. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim /disown any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.